how to work these leads effectively

Spend enough to be a top agent. Part of the reason these leads are so expensive is that you must spend enough to not just appear on listing sites, but to be one of the top few agents on the page to get higher quality leads, Moore says.

Put them into your CRM. Ensure your leads are nurtured through a communication plan like marketing emails. This repeat exposure can pay off: Johnson recently met one of his cold leads, who showed up at an open house after receiving his emails for months.

Meet in person quickly. “If at all possible, I want to get faceto-face so we can have a conversation and start building a relationship,” Moore says. She finds this establishes trust faster than pre-qualification and gives her an opportunity to see more listings.

Finally, Johnson recommends setting up a plan to wean off paid leads and replace them with an active SOI and referral network.

Commission earned may not overtake dollars spent.

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Conversion rates are generally low.

Rich says he averaged a 1%–3% conversion rate, typical of these programs. “With certain systems, such as a dedicated inside sales agent, you may be able to double that conversion rate, but at a great expense,” he says.

When Wallach launched her business in Oregon, she spent almost $10,000 as a premier agent for a listing site, but she only made $3,600 in commission on those leads.

Johnson was spending $20,000 a month on paid leads, but when he started analyzing his ROI, “I was barely breaking even,” he says. “They were not the source of where my actual business was coming from.”

Cold leads take more work to win over.

Prospects that come to you completely cold often require extra effort to build trust throughout the entire process. “It may be more valuable to double down on your SOI and past clients rather than chase the ‘shiny object’ of paid leads,” Rich adds.