Generic lead generation companies make a play for Realtors with Suspect Results
Posted by Pat Kitano at 9/11/2006 10:20 PM 
Categories: Technology, New Business Models, Realty Realities, Thank you, Lead Generation
Categories: Technology, New Business Models, Realty Realities, Thank you, Lead Generation
"I want to be your listing agent" - a portrait from one of Clicksmart's top St Paul agents 
Teresa Boardman at StPaul Real Estate and I have been exchanging stories on lead generation companies and how they've insinuated themselves between the Realtor and the Consumer (see category). Teresa sends me the baldest anecdote I've heard on how a slapdash generic lead company tries to develop their business through sheer hard telemarketing sell. Here's from Teresa:
Lead generation companies - they rip off real estate agents and mislead consumer
I wanted to make the title of this one "telemarketers from h--ll"! My cell phone which is on the do not call list, has been ringing too much lately with all the calls from lead generation companies. Last Friday I actually talked to one because I was not on the freeway when he called. He had a script, so I had to work hard to get him off of it. The site he was selling is called clicksmart. For only some number over $350 dollars I can be the number one agent in St. Paul.
You see I have been pre-screened as one of the best so I can be a click smart agent. The criteria for certification is to be affiliated with a major real estate company, a member of the board of REALTORS, and at least 10 real estate transactions in the last year. Now consumers have a choice they can hire the best! What could be better than a pre-screened, "certified" click smart agent?
The sales person had me put some very specific search terms in google, once I did that the click smart site came up in the blue field across the top. I was assured that I would get the best leads because the searchers using the phrase "St. Paul Real estate agent" were people who needed an agent right away and would be buying or selling within the next three months. The smart people at click smart have done a lot of research and know this to be true. By signing up for this service I would receive 500 internet leads a month. This opportunity is only open to 20 agents, the telemarketer urged me to act quickly.
Please take the time to check out what I saw when I hit clicksmart's site for these St Paul agents. I hate to give them clicks, but wow! All I can say is some people just should not use their personal photo for marketing! I have never heard of any of the agents in the directory. a quick check of the agents on this site revealed that even though they are listed under St. Paul they have never sold a home in St. Paul
Do I need any of these companies in my life? If everyone stopped using them they would go away. Are they helping consumers in any way? Are there any success stories out there from certified click smart agents?
As business slows so many agents fall for this kind of crap. They don't know any better.
Teresa Boardman
8 Pine Tree Drive
St. Paul MN
First comment: Teresa makes a point and cracks me up... she is real standup material... (applause)
St. Paul MN
First comment: Teresa makes a point and cracks me up... she is real standup material... (applause)
Technorati tags leads lead generation realtor marketing
Teresa and I work the same area. We are from different companies but share marketing insights and helpful hints with one another. At times we share little competitive jabs to keep our creative blogging juices flowing. Something else we share is our frustration with the lead generating companies. They are picking the pockets of agents by charging them to be on their "list". Then the consumer does a search on Google for St. Paul Real Estate Agent and mostly lead generation companies appear on the first few pages. Trust me if the agent has to pay to be on a lead generation company's list, they are not the BEST agent. They are usually a beginner or desperate for business and believe the hype the lead generators give out. I don't see big names like Steve Westmark on the lead generation companies' lists! He is one of our biggest producers in the metro (and in the nation) . . . by referral because he earned that place through good marketing and competence.
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St Paul sure is a vortex for fine bloggers!
I just keep coming back to the lead generation subject because I'm fascinated by the disconnects and paradoxes on the perception of leads - i.e., many agents think lead generation companies are parasites, the agents that do buy leads are often the least qualified to handle the lead, more home buyers are finding their realtor by leads so doesn't that make lead companies an inevitability, etc. Each party tied together by the lead - agent, client, lead company - has a different motivation in the forming of the agent-client relationship. Rashomon!
Anyway, check out our first poll - what's your take on lead generation?
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Greeting from Portland Oregon!
I ran accross your blog while researching internet generated leads. I would have to say that I agree and disagree. While there are many "scammers" out there, there are also companies that can provide assistance in generating leads directly to your website. How you handle these "hits" to your website will determine the quality and quanity of "leads". How you handle these "leads" will determine the quality and quanity of "customers". See the following blog for more information on turning leads into clients: http://realestatetomato.typepad.com/the_real_estate_tomato/2006/09/the_3_steps_to_.html
It is a known fact that most people are beginning their search for a home on the net. It is also a know fact that most people will use the first agent they come in contact with. If you have a great referral business you are probably set, but what if you dont? What if you are new? What if you move to another state? We, as a company provide two lead generating systems to our agents, one is a sublease that is managed by an outside source, one is our own website which we pay an outside company to help us direct leads to our website. We have had sucess! I have one agent in the is office who did 2 deals last year and did 4 web deals in last month. It has resparked his desire to succeed and he now is working with 5 of his own buyers. I have one agent in this office that is actively working with 8 buyers "given" to her by our company, as well as working her own successful business. Lead Generating should not be looked at as your only source, but it can sure help. It is my opinion that melding old fashion real estate with web based technology will be the wave in the future. If you arent a large corporation that can join with Yahoo or Microsoft, you will need to find your niche... and unless you are web optimization specialist in your free time, you will need help. Look for a company that offers "hits" to your site, charges month to month with no contract, and that you pay per hit.. not a monthly fee. Also ask for a free evaluation of your site. If it doesnt work out you can always walk away and you wont be joined to some ridiculous list that no one cares about. Good luck and happy blogging!
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Thanks for your insights into how you're generating your own leads from your website. Again, in analysis, leads are generated from so many sources - your website has put them to practical use and has been effective in helping newer agents build their business.
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I don't think lead generation companies are inevitable. There existence may be inevitable but their success is not. I can handle many leads through my web site and know how to work with them. The lead generator companies do not add value, they are true middle men. They do not even screen the agents by geographic area. Just because they have lists of agents who pay for leads does not mean they will be successful. I have never heard anyone say “gee homevalue.com” did a great job finding me an agent! The only reason these web site even work is because many consumers are not yet web savvy enough to spot scam. Consumers need more education on how to find, screen and interview agents which is why real estate professionals need to spread the word.
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I am an agent in Austin, TX and my office has experienced much success as a
direct result of Clicksmart. I have desperately wanted to join the page,
but because of the ingenious limitation of only 20 agents an opportunity
hasn't presented itself, as of yet. Understandably, there are many online
lead generating sources that are far from credible, but these guys have
really put a lot of thought into this program and I would recommend it to
anyone. I would be fully willing to give a glowing testimonial to anyone
who was considering partnering up with this program. As we all know, there
are no shortage of ways to advertise on the internet, but they have really
nailed it in my book!! Best of luck to you all..
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The majority of these type of sites are an incredible waste of money. There are thousands of agents that throw good money away on things like this. Having a good website and of course a blog that is highly indexed in google would blow away this method of gaining business at far less cost.
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