Should I Buy Leads From List Brokers
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Should I Buy Leads From List Brokers?
Joe: Hey, it’s Joe. I’ve got a question here from Richard. Richard says, “I guess my question would be how good are the list sites like ListSource?” ListSource has a lot of leads. They’re expensive, but they’re good. If you go out there and get, you know, all the absentee owners, for example, on ListSource and you send snail mail to those people those can be very profitable. Or you could have a virtual assistant, you know, take that list and look up all their phone numbers and then, you know, do a phone blast, voice, or a text blast to them.
Joe: Now be careful that you’re not breaking any rules about, you know, you know, spamming people and make sure that that, make sure you’re covering your bases and you’re following your local rules on that stuff. I think that the way we’re doing it with for sale by owners is the best way, it’s the easiest way, it’s the least way, the way that’s least fraught with, with difficulties and problems, you know, by sending out spam. Because we’re not doing spam. What we’re doing is, we’re contacting people who have their homes for sale saying we’d like to buy their homes. So we’re answering them in the exact way that they’ve, they’ve advertised.
Joe: The problem is that they don’t want to talk to agents. Every agent is calling them saying, “I want to list your property. I want to list your property.” And they don’t want to talk to agents. All they want to talk to are buyers. So now, if you work and approach them as a buyer, you’re changing the whole dynamic. You’re changing the conversation. Now you say, “I’d like to buy your property.” “I’d like to,” you know, “sell it on a lease option. Would you let me do that? I’d like to buy it on a lease option, and I’d like to assign it to somebody else.”
Joe: And that brings us in a lot of leads that are a valid source of doing it. So, stick with those types of leads, in my opinion. Unless you’re going to be using other zero down structures and then you want to start doing mailing. But, if you start doing mailings, snail mail is going to cost you $10 to $20 a lead when you do that, whether it’s the postcards or the snail mails, and those are good leads, you know, and you can, if you’re good at this, you can convert them.
Joe: But if you’re just getting started you want to have as many leads as possible so that you can learn how to convert them and then once you do that, you realize, hey – I don’t have to spend $10 for a lead. I can spend 6¢ for a lead. I can spend, you know, 70¢ for a lead. Typically our leads are coming in, they’re costing 7¢, 8¢ apiece, but eight or ten out of those are, you know, two out of ten of those are, are, or, eight out of ten of those are no’s, so two out of ten are yes’s or maybe’s, so, you know, you’re spending 70¢ or 80¢ or $1.00 for two leads, you know, so that’s what, 50¢ a lead. Compared to $10 a lead – I’ll take it. You know, it’s a pretty good deal.
Joe: So, they make a lot of sense to use the Automarketer leads instead of these other sources where you buy 500 leads and they’re costing you 50¢ a lead. That’s just the lead, and then you’ve got to mail them and then you’re only going to get 3% to 8% response, if you have a really good expired or absentee owner letter that you’re sending out. You’re going to get leads that are going to come out after that.
Joe: “Seems everyone is using listing companies to gain leads that are motivated sellers, such as expireds and inheritance and probates. You thoughts? This is mainly geared toward wholesale deals.”
Joe: If you’re looking for wholesale deals, at least $10 apiece leads, $20 apiece leads, they can make sense if that’s all you’re looking for. But, you know, you can do a lot more deals. I think I mentioned on one of my previous videos that, you know, for every hundred deals that you get for the For Rent Method or for any of these other zero down structures I’m teaching, you’re going to get one deal that’s a, you know, that’s a wholesale deal. Wholesale deals can be great and they’re wonderful, but, you know, this is the old thing. You know, if you’ve got, all you got is a hammer everything looks like a nail, you know?
Joe: So, learn the other techniques. Learn how to engineer a deal that makes sense in a lot of different ways and you won’t have to just wait around for that one deal to come around and spend thousands of dollars on mailings to finally get a deal that you’re able to make, you know, maybe, maybe you spend $2,000 in mailings to get a deal and it finally made you $5,000 or maybe it made you $10,000 or $20,000, but you have to do that once every three, four, five months.
Joe: Instead, I’d rather send, spend, you know, $1.00 or $5.00 to get enough leads where I could convert and do a zero down deal where I can actually take over a property that might have $20,000 of equity or $50,000 of equity or at the minimum I flip it and do a lease option deal and make $5,000 or maybe make $10,000 in cash in my pocket right then and there and I do that two, three, four, five times a month. That’s going to be a lot easier than doing one wholesale every six months, and doing a rehab and those types of things, the traditional techniques that are being used that are so much more risky than what I’m teaching here.
Joe: Anyway, I hope that helps. Good luck.