Return on investment of paid online leads
The techniques that these agents use to cultivate online leads likely power their success.
But agents who’ve cracked the code of online leads also may be making better decisions about the sources they choose to harvest them from.
“… There are a lot of companies trying to sell programs to agents for online leads that are just a money grab,” said one respondent. “You have to decipher which programs work and which don’t.”
Indeed, the results of Inman’s survey suggest that different online lead types offer varying levels of return on investment.
Leads generated by search engine and Facebook ads generally provide the best return on investment among paid online leads included in Inman’s survey, according to agent respondents. These were the only types of online leads to earn more ratings of “great,” “good” and “mediocre” collectively than ratings of “poor.”
Online leads sold by brokers placed third, with 48 percent of agent respondents who rated the lead type saying it’s ROI is “mediocre,” “good” or “great” (and the rest rating it “poor”).
Facebook ads received a notable number of plaudits from respondents for their targeting capabilities.
“Even though the response rate is low, it is higher than Zillow, Trulia or realtor.com, and the cost is much lower,” said one broker-owner respondent. “It also allows us to market our listings to specific demographics without having a buyer agent’s face on our listings.”
The survey’s findings suggest that respondents may be underinvesting in paid leads from Facebook, search engines and brokers.
Source: “The bottom line on online leads” (Inman.com survey highlights ROI and overall impact of Internet leads in real estate)