Should you spend your time and money on Internet leads like Zillow and Realtor.com? There’s a lot of talk in the industry about these kinds of leads and whether they’re worth your while. A lot of teams have success with Internet leads, but the question is whether it’s worth your while for you specifically. Two years ago, an NAR study showed that referral business was still the No. 1 source of real estate business in the United States, but also that 20% of real estate business was generated by Internet leads. Keep in mind that an MIT response study found that if you can’t follow up with an Internet lead in five minutes or less, it’s probably not worth your while. Do you have the technology, systems, and capacity to follow up with them that quickly? The average agent last year took 61 hours to follow up with an Internet lead, so consider that before you decide to invest your time and money in them. Secondly, be aware that it takes seven to eight follow-ups to build a rapport with a lead. Do you have that kind of time and capacity?
Third, remember that the money generated from Internet leads are often generated in long-term follow-up. Most Internet leads are six to 12 months from their buy-in window at the time that they inquire. Not only do you have to follow up quickly and often, you have to follow up for a long time. Overall, it takes a lot of money, time, systems, and technology to do it well. If you’re at a point in your business where you’ve leveraged help from other people and you have the time and money to spend on systems and technology to pursue Internet leads, it might be a great decision for your business. I hope you found this discussion helpful. If you have any questions or you’d like to talk further about building your business, don’t hesitate to reach out to me. I look forward to hearing from you!