One thing is clear, a crappy lead generating company will not be able to survive in the face of new social media. One day one blogger will write about your services and his blog will open a can of warms.
I can’t help myself but wonder if there is any good lead generating company out there. Or all they all full of it? Again, I am not talking about the crappy companies that promise to give you hundreds of leads each month, just to scam you out of your money without delivering on their promise.
What I have in mind are the companies that would not charge you a penny unless they provide you with a lead that eventually converts into sale. No sale would mean a not qualified lead and therefore you don’t have to pay a penny for it.
Many of my readers here are familiar that I am an affiliate marketer. While there are different business models within affiliate marketing, at the end of the day my pay is based on my performance. If I send a visitor to Amazon.com and he or she does not by anything, I do not get paid. If I send a visitor to Lending Tree and he or she does not fill out a certain form, I do not get pain. In other words in order for me to get paid, I need to perform- not just promise. What do you think would happen if I asked Amazon: “I promise to send 100 byers each month to your website. Would you pay me $10 per each buyer?” Well Amzon may agree to pay me $1000 the first month around, but I doubt they would go along with my crap month after month, unless I have sent them 100 buyers each month. Well, people at Amazon and other companies were smarter. You can make money with Amazon, but only if you deliver the goods.
I have heard plenty about one crappy lead generating company. But I also believe that not every lead generating company is worthless. If you have come across a good lead generating company, please share it in the comments. I would be more than happy to write about such companies.
Max,
It is really good to know that you, and maybe other agents understand how affiliate marketing works. In fact this is how I make my living.
Unlike other companies that pay me on pay per sale basis, as you mentioned, it can be difficult to track these transactions in real estate… At least until such time when the entire transaction will be possible online.
However as far as leads are concerned. It is possible even today to track these things. It think it is just the matter of defining what will qualify a lead. Let say a sign up to your monthly news letter can be qualified as lead. Or filling out certain form on your website.
It may be difficult for a smaller companies to be getting into the affiliate marketing model. But it is possible.
Also. In NJ and some other states, it is only licensed agents that ca receive the “referral fee”. I am not sure how would affiliate marketing be looked at. But I guess it is up to the layers to figure that one out.
Thanks for stopping by. I will include both of your blogs for the next update to the list- Monday or Tuesday.
Thank you for the prompt reply and for adding our blogs!
Not a problem Max,
Glad to to have you commented on my blog and hop you can drop in from time
to time. I am no longer active in the real estate so I need hard working
agents to keep in “in line” 🙂 .
I actually tend to answer more comments now that I have Disqus installed-
highly recommend it. I am answering to yoru comments from my e-mail client.
Again, thanks for stopping by.