Should Real Estate Agents Buy Leads in 2025? A Quick Guide to the Basics
One of your biggest challenges as an real estate agent and independent contractor is maintaining a steady flow of qualified leads. While referrals and organic lead generation are valuable, many agents consider buying leads to accelerate their business growth. But is buying leads worth the investment? Let’s dive deep into this crucial business decision.
What Are Purchased Real Estate Leads?
Before making any decisions, it’s essential to understand what purchased leads actually are. These are potential client contacts obtained through:
- Lead generation companies (Zillow, realtor.com, BoldLeads)
- Pay-per-click advertising platforms
- Social media advertising
- Third-party lead aggregators
The Pros of Buying Real Estate Leads
1. Quick Business Acceleration
When you’re just starting or looking to scale quickly, purchased leads can provide immediate opportunities. Instead of waiting months or years to build organic traffic, you can begin connecting with potential clients right away.
2. Predictable Lead Flow
Buying leads offers a more consistent pipeline compared to organic methods. This predictability helps you:
- Plan your follow-up strategy more effectively
- Budget your time and resources
- Scale your business with more confidence
3. Targeted Market Access
Many lead generation platforms allow you to:
- Target specific neighborhoods
- Focus on particular price points
- Choose specific buyer/seller categories
- Select demographic characteristics
The Cons of Buying Real Estate Leads
1. Cost Considerations
Lead costs can vary significantly and these are just a quick example. There are many more:
- Zillow PremierAgent: $20-$300+ per lead with significant regional variations
- Realtor.com ConnectionsPlus: The average cost per lead typically ranges from $25 to $150 with significant regional variations
- BoldLeads (formerly Market Leader): Monthly subscription starting around $99-$299 per month.plus a set-up fee
- Opcity (Now part of Realtor.com) referral fee of 30-35% of your commission
2. Lead Quality Issues
Purchased leads often have lower conversion rates because:
- Multiple agents may receive the same lead
- Leads might be tire-kickers or not serious
- Contact information could be outdated
- People might be early in their buying/selling journey
3. Time-Intensive Follow-Up
Success with purchased leads requires:
- Immediate response times (ideally within 5 minutes)
- Consistent follow-up systems
- Long-term nurturing strategies
- Multiple contact attempts across different channels
Making Purchased Leads Work: Best Practices
1. Choose the Right Platform
Research different lead providers:
- Compare costs and minimum commitments
- Read reviews from other agents
- Ask about lead exclusivity
- Understand the lead generation methods
2. Implement a Strong Follow-Up System
Develop a systematic approach:
- Use a CRM to track all interactions
- Create email drip campaigns
- Set up text message automation
- Schedule regular check-ins
3. Budget Wisely
Calculate your potential ROI:
- Determine cost per lead
- Estimate conversion rates
- Factor in time investment
- Consider alternative marketing methods
Alternatives to Buying Leads
1. Content Marketing
Build your own lead generation system:
- Create valuable blog content
- Develop neighborhood guides
- Share market reports
- Maintain active social media presence
2. Networking and Referrals
Strengthen your personal network:
- Join local business groups
- Attend community events
- Partner with other professionals
- Ask for referrals consistently
3. Sphere of Influence Marketing
Leverage your existing connections:
- Regular communication with past clients
- Host community events
- Provide market updates
- Offer value-added services
Making the Decision
Consider these factors before buying leads:
- Your current business stage
- Available time for follow-up
- Marketing budget
- Existing lead sources
- Technology capabilities
- Support systems in place
Related article: Building Your Sphere of Influence: A Real Estate Agent’s Guide to Sustainable Business Growth
Conclusion
Buying real estate leads can be a viable strategy for growing your business, but it’s not right for everyone. Success depends on having proper systems, sufficient budget, and realistic expectations. Consider starting with a small investment to test the waters, and always maintain a balanced approach to lead generation that includes both purchased and organic methods.
Action Steps
- Evaluate your current lead generation efforts
- Research different lead providers and their costs
- Calculate potential ROI based on your market
- Develop a follow-up system before purchasing
- Set clear goals and metrics for success
- Start small and scale based on results
Remember: The most successful agents typically use purchased leads as part of a diverse lead generation strategy, not as their sole source of business.