You want a company with a very strong Internet presence. It would be nice to have gotten in with one of the huge, now public, companies like HouseValues.com in the early days because they advertise on TV. (most of their areas are sold in the larger cities but I would get on their waiting list if you can)

But an Internet savvy company, even a newer one or a local one, can produce excellent leads too. Well over 70% of all home searches start online so, as we already know, the Internet is leveling the playing field.

One of the main things to look for is exclusivity in your leads. Some companies sell their leads to more than one agent (some as many as four). Take it from me you do not want to be competing with other agents or buyers for your deals.

The ideal is to be the exclusive agent in a specific geographic area - be it a zip code or county etc. that way you can do local marketing for the site and not be worried that your efforts are going to waste. This applies especially to the sites that advertise to give the consumer some type of valuation on their home.

It’s doubly frustrating if you don’t have access to your leads for follow up and continued contact and marketing. Most good companies provide a management system that your leads drop right into and you can do all your follow up from there.

This one is a tricky one. It is my belief that you need to think like a marketer to answer this question not a real estate lead buyer. Ask this question: could one deal pay for the entire year of leads? Or could one deal pay for six months? Thus netting you every other deal you close? These are the questions you need to weigh when evaluating a lead generation service.

Along the same lines of “thinking like a marketer” there is an interesting analogy you need to look at. In our business of real estate we all know the king of all sayings: location, location and location. Well in marketing there is a similar phrase and it’s test, test, test. What that simply means is you need to test marketing with small amounts of money and literally see if you can fail quickly so that you can get to the winners.

With the proliferation of Internet companies now selling real estate leads you need to be able to find out which one is good and which one is bad very quickly. Most are so inexpensive, and I have never ever seen one that has a long term commitment, you can test them for a few months and see if they are working for you.

Your life will literally change when you understand how to acquire and work leads. You don’t want to get into the lead generation business - you’re in the real estate business. The economies of scale that these companies have for advertising, search engine placement and system creation (such as house valuation models) give you a huge benefit. You’ll be able to just do what you do well all day long - which is talk to buyers and sellers

Are you an investor looking for a reliable lead generation system? With 1-800-You-Sell, RehabList and Rehab Hard Money you get bona fide leads direct from the public.

Search for local investment deals in your area now!

About the Author

Mike Collins is the Founder of RehabList.com

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