Posted by Connie Gohata on Tuesday, October 24, 2017
I'm getting ready for the game - it starts today at 5:00 at Dodger Stadium, but I, like most of the rest of the world, will be watching it on FOX, channel 11 here is SoCal. That is in an hour and 45 minutes from now, just long enough for me to start something and not finish it. But I thought I'd at least leave my thoughts, here.
Behind the scenes of a Realtor??:
I get calls and solicitations every day - today was from a company who would send me referrals. They say the leads are vetted already, so they have already talked to them. I've done this before - got leads that don't pan out. These leads are very expensive. They were going to get me 8 in the next few months for $1850 PLUS 30% referral fee - that means 30% of the commission would go to them. My normal referral fee is 25%, not 30%. On an average price of $500K, commission would probably be between $12,500 and $15,000. Let's round it down to $10,000 to make the numbers easy to understand.
This referral company would get $3,000 off the top for one referral that closed. They say their numbers come in with an average of 40% of these leads converting to listings. So that means out of 8 leads I'll typically actually get 3.2 listings - let's say 3. So, at $10,000 per closing, that's 3 closings for $30,000 gross. They take 30%. That's $9,000 off the top. PLUS $1850. That means 3 listings cost me $10,850 out of my $30K gross. That leaves me with $19K. Then comes the insurance, the broker split, the transaction coordinator fee, the this and the that. I may end up with $15K. Is that worth it, I say to myself? Well, it would be IF I really got 3 closings. In my experience with these types of leads, they promise the world and don't deliver. I'm out $1850, they are having a nice dinner somewhere and I'm stuck with their bill.
Guess what I told them? "No, thanks!"
Tags: secrets leads conversion listings referrals