There are two types of lead programs in real estate. The first is subscription-based lead platforms. The second kind is referral-based lead platforms.
Subscription-Based Lead Platforms: These are companies that will sell you buyer and seller leads for a fixed monthly fee. Typically you are tied to a contract and you pay monthly regardless of whether you close any of the transactions they send to you.
Referral Fee-Based Lead Platforms: These are companies that have NO monthly charges for leads (no subscription fees) but they charge you a referral fee when you close the transaction. The referral fees equal anywhere from 25% to 38% of the transaction. For example, let's say that you close a transaction and your gross commission is $10,000. If the referral fee lead company charges a 25% referral fee, then you must pay $2500 to the referral company at the time of closing. When completing the check request you must indicate that there is a referral fee due. LAER will email you a check for you to email to the referral company. Your commission split is then based on the net commission after the referral fee is deducted from the top. In this instance, LAER would calculate your commission based on the $7500 that is received after the referral fee.
Here's a link that contains most of the subscription and referral-based lead companies (click on each one to learn more or sign up):
https://www.canva.com/design/DAEjbYrQHX4/afzUIgRKxE3DtyOo4vQCMg/view?utm_content=DAEjbYrQHX4&utm_campaign=designshare&utm_medium=link&utm_source=publishsharelink
If you want to be added to our OpCity Lead Platform please read the following article and then email HappyAgent@LAERRealty.com to ask to be added to the lead rotation for this program:
OpCity
OpCity Fees
Considerations:
- If considering a subscription base lead platform, you should make a post inside the LAER Inside The Lions Den Facebook Group asking other agents what their experience has been with that lead company before you commit to a long-term contract.
- When signing up for a subscription-based lead company try to negotiate for a short-term contract so that you can try it out first.
- Referral-Based lead companies are less risky because you only pay if you close the transaction.
- Even though referral-based lead companies are expensive, you only pay the referral fee on that one transaction. It's your job to turn that client into a referral machine, someone who sends you friends, family, and co-workers, as those additional referrals will not have a referral fee attached to them.
It's difficult to build a sustainable business buying leads. Therefore, you should think about how you will build a business by focusing on your sphere of influence.
https://www.laerrealty.com/posts/mindful-monday-meaningful-marketing
If you need coaching, please consider the LAER Coaching program designed to show you how to build a sustainable business.
https://www.laerrealty.com/LAERCoaching