Thread: Am I paying my property locators too much?

I don't think you are, your refferal fees seem reasonable and high enough to keep people coming.

I'm a real estate agent, and it's much the norm for us to pay 33% for all closed leads. 10% would sound like a deal to me.

I work with a few wholesalers in my area, one pays 25% of net profit on the turn, and another pays a flat $1000 fee.

What are you spending VS What did you pay for the batch of leads.

Ex: If you pay $500 for 50 leads and out of that you closed one deal, then you paid $500 for that deal.


You need to use your real numbers and ask: Is it worth it?

The cost is irrelevant if you don't know what the Return on Investment.

If you do know the ROI, then you need to begin looking at improving it through tracking.

One thing I would consider is keeping an eye on the types of leads each bird dog brings...if they continuously bring dead deals then you need to can them or train them properly, so you can stop wasting $10 per lead.

Just my 2 cents,

Nate Kennedy

Originally Posted by ntkennedy

The cost is irrelevant if you don't know what the Return on Investment.

If you do know the ROI, then you need to begin looking at improving it through tracking.

One thing I would consider is keeping an eye on the types of leads each bird dog brings...if they continuously bring dead deals then you need to can them or train them properly, so you can stop wasting $10 per lead.

Just my 2 cents,

Nate Kennedy

I agree and that's what I do. They have to bring leads that fit the profile on the bird dog checklist I provide to them.

I don't think you are over paying unless your ROI isn't there. If you are having that trouble I think it is time to find new locators.

One thing that I started doing this year has been to get my property locators focused on finding buyers that can qualify for my properties for a small fee. The reason I do this is because most of the houses they find are a dime a dozen and I don't want to pick up too much inventory. Are any of you doing this and what are your thoughts?

Originally Posted by 20something re guy

I don't think you are, your refferal fees seem reasonable and high enough to keep people coming.

I'm a real estate agent, and it's much the norm for us to pay 33% for all closed leads. 10% would sound like a deal to me.

I work with a few wholesalers in my area, one pays 25% of net profit on the turn, and another pays a flat $1000 fee.

Worse case scenario you can simply Seller Finance/Agreement for Deed with a decent Down Payment .

SEO Manchester

What you thought this time its perfect I think. Keep it on.

Check your bank statements. Are they going up or down. If they are going up I would leave it alone.