Pay at closing real estate leads have slightly more risks than benefits.

You can best reap the benefits when you work with the proper company.

Also, there are ways to mitigate the risks.


The Four Benefits of Pay at Closing Real Estate Leads

  • Because you don’t have upfront costs, there is no monetary risk when generating leads.

  • You have a higher chance of getting quality leads. The provider doesn’t get paid if the provider doesn’t give you quality.

  • You save time by not having to work on your real estate marketing and lead generation.

  • Higher chances of receiving exclusive leads.


The Five Risks of Pay at Closing Real Estate Leads

  • Unfortunately, real estate starters and intermediates will often not get into these programs. And it’s usually them who have a much higher need for leads. As you can see above, they mostly want top agents.

  • Referral fees can be pretty high. So, it might be a better bet to pay for leads upfront with other providers. Yet, this depends on your sales and follow-up skills.

  • You may have to pay further referral fees for future transactions. This depends on the referral agreement with such providers. Besides, they may also not allow you to market to them long-term (e.g., past client marketing).

  • You can waste time creating opportunity costs with cold leads and poor-quality ones.

  • You will compete with many agents for the same non-exclusive leads. This, again, depends on the provider.

This article has been reviewed by our editorial team. It has been approved for publication in accordance with our editorial policy.

Tobias Schnellbacher