How Internet Lead Generation Shifts the Realtor's Lead Acquisition and Selling Process
Posted by Pat Kitano at 8/21/2006 9:26 PM 
Categories: Technology, New Business Models, Realty Realities, Lead Generation, The Future
Categories: Technology, New Business Models, Realty Realities, Lead Generation, The Future
This 8/22/06 Inman article (highly recommended reading) by Steve Kropper posits how lead generation will change the Realtors' jobs in the future:
1) More leads will be generated on the internet and other media. Leads will be bought by brokers who will distribute to their agents.
2) Consequently, Agents don't focus as much on lead generation and specialize in selling.
3) Brokers will assume more of the lead generation responsibility and splits increase in their favor.
4) Brokers and Agents share of total commissions decrease as lead generating media take greater share.
3) "Agents and brokers who embrace this lead acquisition/sales process split will find improved margins. Specialization is more efficient." (article excerpt)
According to Kropper, the lead generation companies must focus on lead incubation to ensure that the lead given to an Agent is as good as any other lead they find... More about incubation in this excellent primer on web leads and web lead conversion.
Note the above is only an excerpt from a larger article. All this makes sense to me, and it indirectly points to an answer to a question I had - "Can brokers keep control of their online lead generation process?" After all, in my previous article, we see how lead generation companies rankle realtors by butting in on their commission.
Answer - lead generation companies will focus on increasing lead conversion, and eventually the leads will reach a level of convertibility that brokers would best serve their agents by partnering or purchasing from these companies.
Is this inevitable?
Technorati tag - realtor lead generation
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