Are Internet Leads an Effective Way to Build Your Real Estate Business

Internet marketing has become an integral part of the real estate industry, but are the leads an effective way to build an agent's business? When generating sales from the internet, an agent must create traffic, capture prospect and cultivate leads into clients. When generating sales from traditional marketing, an agent must generate traffic, capture prospects and cultivate leads into clients. Sounds the same, right?

The difference is perception, internet advertising is new. It doesn't have a track record like traditional forms of agent advertising. Many agents are apprehensive about utilizing precious funds on the web. In contrast, studies show that the majority of buyers are using the internet to research their home purchases. As you can see, there seems to be a conflict within, while the internet is new with little history, buyers are actively researching purchases via the web.

It's time to change. If buyers are actively searching the web, then real estate agents need to start allocating advertising dollars for the internet. Let's discuss three choices agents have to reach buyers and sellers with their website: pay per click programs, directories and lead generators.

Pay per click programs - each of the big three search engines, Google, Yahoo & MSN, have pay per click programs that allow advertisers to bid on keywords, then the advertiser is listed in the search engine's sponsored directory. This is a great way to generate immediate traffic, but it comes with a cost as you are paying for each click. Be sure to utilize words that will generate qualified traffic.

Directories - there are local, national and global directories that categorize websites, then list them within the directory. These directories are similar to the old phone book. Most are for a fee, and it is difficult to forecast and measure the traffic generated by the directory.

Lead generators - lead generators are websites that act as portals for the agent. These sites generate the traffic and capture the leads. Then, the lead is provided to the agent for cultivation. These leads can be expensive, therefore ensure that they are exclusive. Also, find out if the lead generator provides a database for managing the leads and a follow-up campaign for cultivation. Lead generators can be an excellent accent to an agent's business because it allows the agent to spend more time on cultivation with less time on creating and capturing traffic.

Regardless of how an agent chooses to target traffic on the internet, it has become a necessary evil as the internet has become the media of choice for most buyers. Don't fall behind and remember to follow the three C's: create, capture and cultivate.