The Problem with Buying Real Estate Leads for New Real Estate Agents

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As a new real estate agent, your primary goal is to obtain clients and start earning commissions. This cannot be accomplished without a constant flow of real estate leads.

Buying real estate leads seems like a good idea in theory. However, it can have a few major issues with the brand new agent.

A new agent often has to pay a lot of fees to various associations.

In California there is the California Association of Realtors®, then there is the National Association of Realtors®, and depending on your city, there may be association dues that must be paid as well.

Attempting to buy leads on top of all of those fees can really put a dent in your financial situation.

Below, I will explain why buying leads as a new real estate agent isn’t the best idea and how you can develop your own constant flow of real estate clients at very little cost.

Real Estate Leads are Expensive

buying real estate leads

Depending on where you search, buying real estate leads can cost thousands of dollars. If you are lucky enough to find a brokerage that will provide leads for you, then you have something to work with.

Otherwise, generating leads is all on you and can be tremendously time-consuming. If you’re not door knocking, you’re probably cold calling, networking, and marketing yourself online (social media) and offline (print material).

Even with all of that work, you’re lucky to get a few interested prospects in one month. This is why paying for leads is so enticing.

The idea is that the leads you pay for are good leads. Meaning, they are people who are looking to buy or sell a home in your area.

You still have to do the work of calling them and selling yourself as an agent. However, the initial hard work of even finding a qualified lead is done for you.

This is why companies that sell real estate leads can charge a high price. They’ve done the work of finding qualified leads and they’ve likely spent thousands of dollars themselves to do so.

Some Real Estate Leads are Useless

useless leads

The risk that you run when buying real estate leads is ending up with leads that are completely useless.

Not all real estate lead generating services are the same. Some may provide reliable leads, while others provide leads that weren’t worth your time or money.

Chances are, the more reliable services will charge quite a bit of money for their leads. If you’re lucky, you may actually find one that works out well.

The commission you make could more than make up for the money you spent on the leads. This then leads to another problem.

You could become so reliant on paid real estate leads that you end up feeling trapped in a cycle of constantly paying for them out of fear of your lead generation dropping to zero.

This brings us to the next topic below.

Your Real Estate Leads are Gone Once You Stop Paying for Them

buying leads

If you have the means to buy real estate leads on a regular basis, you run the risk of becoming 100% reliant on paid leads.

What happens if you can no longer pay for leads? It could take several good-sized transactions to recoup what you’ve paid for leads.

Sooner or later, you may come to realize that you are spending more than you’re earning and it cannot go on like that for much longer.

Once you stop paying for leads, your biggest source of lead generation is gone. You may resort to going back to the time-consuming methods of door knocking and cold calling.

There is a better way. It is possible to begin generating your own targeted leads using your own website. Best of all, it is extremely low-cost.

How to Create Your Own Real Estate Lead Generating Website

create a niche website

Attracting your own targeted leads begins with having your own website. I’m not talking about the cookie cutter websites your broker may provide.

I’m talking about your very own website on your own domain. If the thought of getting your own website sounds daunting, don’t worry.

You can easily register a domain through a domain registrar like

The next step would be to get web hosting to host your new domain. What’s awesome about most web hosting companies is that they will also give you a free domain registration as a new customer.

The hosting I use and recommend is SiteGround. They have the best customer support I’ve ever experienced with any hosting provider.

They also have one-click WordPress installation so you can have your own website up in a matter of minutes.

Many businesses that need leads on a regular basis utilize a blog on their websites. Generating leads doesn’t happen overnight.

You will need to keep your blog up to date with helpful and informative posts on a regular basis.

As a real estate agent, this should be no problem. Think about the many questions a potential client may have about buying or selling a home.

Write your posts with the intent of answering your potential client’s questions. Your blog posts should be informative which means they will likely be lengthy (800+ words).

The key is to continue blogging as often as possible. Over time, your blog posts should begin to rank well in the search engines.

How Long Does it Take to Get Leads with a Blog?

There is really no hard timeframe when it comes to asking how long it takes before you will get leads online.

The safe answer is to give yourself at least a year. Some people get results within 6-months depending on how much effort they put into their writing.

Even if you plan on outsourcing your writing, all you have to be sure of is that the quality of writing meets your standards.

Don’t think of one year as too long a wait. How many years have you spent working for someone else? A year is nothing timewise and could make a huge difference in your business.

Create Sales Funnels for Faster Real Estate Lead Generation

sales funnels

Blogging is just one resource to generate leads online but as I mentioned above, it takes time to get it going.

A faster method and one that actually converts visitors into clients much faster is through the use of a sales funnel.

A sales funnel is essentially the process of capturing a person’s contact information. Usually a name and email address.

As a real estate agent, you may want to capture a telephone number as well. Your targeted visitors land on your squeeze page.

It is called a squeeze page because the content on the page encourages visitors to input their contact information.

You usually provide some type of incentive in exchange for their contact info. For example, as a real estate agent, you could offer a list of foreclosures in the area, etc.

The beauty of a sales funnel is that once you have captured a visitor’s contact information, particularly their email address, you have a targeted lead that you can communicate with.

Here is a sketch I did for a simple sales funnel:

The software that I use to create sales funnels is called ClickFunnels.

It is a very powerful sales funnel software that makes it easy for anyone to create lead generating funnels.

If you really want to understand the power of sales funnels for lead generation, I highly recommend reading DotCom Secrets. It is written by ClickFunnel’s creator Russell Brunson.

He is currently giving it away for free (just pay shipping). You can grab your copy here.

It is an awesome read and he really explains sales funnels so that it is easy for anyone to understand.

In Conclusion

The huge plus about generating leads using the internet is that you will have an unlimited supply.

The key is taking advantage of free traffic resources such as blogging and the various social media platforms.

People are always seeking information and as a real estate agent, you can help answer many common questions current and future home owners have.

Answer these questions using your blog, Facebook page, YouTube, and Instagram. Build a following and send them to your funnel!

Learn how I was able to quit a full-time retail job to begin earning a consistent income online. Click here to learn how I did it.


Hey there! My name is Eartha. I'm an internet marketer. I enjoy helping others discover the benefits of starting their own online businesses.

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