Monday News You Can Use!

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Conversation to Have with YOURSELF:

Why buy leads? 

Recent article about Open Door and Zillow Close rates – 1.7% and 1.8% – lets say Zillow charges $1500 a month for “10 to 15 Leads per month” (this was the last offer from Zillow for a zipcode I sell in)

So I might get 180 leads a year.  

Our average price is about $350,000 and average commission is about $9000.  So 3 to 4 closings could be expected from the 180 leads (but that’s the number that close not the number I close since most leads are sent to more than one agent.)

But let’s say four deals close out of those leads. 4 closings times $9000 equals $36,000 in income.   $1500 a month to the lead source is $18,000 a year.  So the lead seller would say it is a 200% return on investment.

It is the equivalent of a 50% referral fee.  

AND it doesn’t factor in the time and effort spent on the 176 leads that didn’t buy.  Even if its just 30 minutes a lead that’s 88 hours of effort and if your time is worth $100 an hour that’s $8,800. Not much profit left is there? $9,200 less expenses.  

What if you took $18,000 and spent in on meaningful events and pop-by gifts for your past clients?

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Tech Tip

Anyone using CURBIO.COM?

Pretty cool service although their estimates are on the high end.  
My experience with their people has been fantastic. 

Curbio, Pre-Sale Home Improvements. “We help homeowners and their agents renovate homes before listing: kitchens, bathrooms, painting, roofing, flooring, appliances, HVAC, landscaping, window and door replacement, and so much more.”