Lead Platforms – Everything Old Is New Again

I have read that four major firms are in the process of creating “lead platforms” where the company generates leads and gives them to the agents. Those companies will not do that for free. They are trying to make agents more dependent upon the company hoping to raise their retention numbers.

1. Isn’t this what Zillow, Realtor dot com and relocation companies have done for years that agents complain about having to pay a 25% – 35% referral fee? If you receive a lead, you will pay for it somehow.

2. If your company gets you to depend on them for leads, they will ultimately want to keep more of your commission dollars in exchange for those leads.

3. Large companies are lucky if 20% of the agents in their firm use the technology the company provides even at their highest success rates. Often that percentage is below 10% usage. If you are using a company supplied CRM (customer relationship management system), could the company keep your data? They say they won’t but I know for a fact some do.

4. Some 3rd party companies are being championed by those large real estate firms. Have you ever noticed who the ownership is under? Often it is at least partially owned by the CEO’s, presidents, etc of those companies. Why? They provide another revenue stream just like title companies and mortgage companies. Investigate who owns the company and see why they are such huge promoters before you buy in.

5. If the company you work for doesn’t at least have a system/program to teach you how to generate business on your own, they don’t have your best interest in mind.

6. Some companies are charging every agent a monthly fee for technology that few are using. A few have actually raised their monthly fees recently.

7. Some companies hire any agent, anytime, any situation because they depend on monthly fees to pay basic bills. If you are a new agent, make sure you are getting something for that monthly fee.

8. We are in an era where large companies who have provided “break evens,” ”caps” and “max outs” are learning they are not making as much off of each transaction. They are trying to take back some of what they have lost in the past.

Realtors are small business owners. Every once in a while, you should examine who you partner with and look at your balance sheet, P&L Statement and your gross income vs your net income and make sure everything is still working for YOUR benefit and not the benefit of others.

As Zig Ziegler used to say, “Everyone needs an checkup from the neck up once in a while.”

If you want help analyzing your numbers, I am happy to sit down with you at no charge and look at your business with you. If it is not me, get someone that is unbiased to help you look at it.

Sometimes we all need to work ON our business and not just IN our business.

BP8