The Battle of Organic vs. Paid Leads

Content sponsor Iron Valley Real Estate explains when it may be beneficial to buy leads—even if only temporarily—to jumpstart your business.
Iron Valley Real Estate Paid Leads vs. Organic Leads

Work your sphere or buy leads? What is the most advantageous path to success in real estate sales? This is a debate that divides agents and brokers alike. They say your network is your net worth, but is it large enough to support your business?

Organic lead generation, for some, comes naturally. Coming from a sales background, you most likely have a database of clientele. A service industry rock star will have connections with many in the community. A social butterfly could have many friends looking to purchase their first home. Managing your circle and building your database organically can be done simply by taking friends to lunch, sharing information about real estate with new acquaintances, or creating a social media persona that stands out.

Not all agents, however, begin their real estate careers with a large network. They may have recently relocated or never realized how many of their existing contacts are killer agents. How can a real estate professional get started in building their business?

One solution is paid leads. Buying leads can be a great way to jumpstart a new business. As with any business, entrepreneurs need to make smart investments that will provide opportunities for growth. Either as a realtor who is starting out with a limited network or one that may have worked their entire database, spending money on leads may be the catapult to increased earnings. But remember, buying leads isn’t enough.

Agents need to have the fortitude to work their leads, whether they are purchased or part of their existing circle. Doing this requires agents to be well-versed in real estate while also having the ability to use foundational sales knowledge to build a personal connection and provide great service throughout each transaction. It doesn’t end there. Building a system to stay in touch with clients after closing keeps you top of mind and opens doors for building your referral business for long-term revenue generation.

If you are on the fence about organic versus paid leads, consider your business goals and objectives. Take time to speak with other agents about their experiences with purchasing leads. Keep in mind that buying leads can be a temporary investment. It’s all in how you work it.

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