Lars Hedenborg breaks down why paid leads are a bad bet for real estate agents. A billion leads were sold to agents in the last 12 months, but only 4 million homes sold. That means conversion rates on purchased leads fall below 1%, making the paid-lead business model a losing game.
Is anyone even just a little bit Concerned about AI? Even just a little bit? Put a 1 in the chat if you're a little bit concerned. Be honest. I'm a little bit concerned. I would put a 1 in the chat. You'd be stupid to think that AI isn't going to impact how agents roll. That's a little harsh. Stupid. But a lot of agents are using AI at a high level. So it's not to say that it can't help us in our business. And then a lot of agents, and some of you may feel like you're spinning your wheels crazy stat. A billion leads were sold to real estate agents in the last 12 months. A billion. A billion. How many homes sold in the last 12 months? Put it in the chat. Who knows? Let's see who gets the prize. Four million. So let's say two sides. That's eight million. And let's just assume that they didn't have any relationship with their agent. Let's assume they all came from the billionaire. So what's the math? Carl, get your calculator out. What's the math on a billion divided by 8 million? What is it, like at least 100, right? 120x or something like that? It's some crazy, crazy number. So we are sold a bunch of nonsense as real estate agents. So you're just spinning your wheels. If you're playing that game of paid leads or the way the industry wants us to play it. And some of you have a few kids, you've got a wife, you maybe have a couple, three dogs. Maybe you're trying to keep your body in order. Keep. Can you imagine those odds? Can you imagine why conversion rates on paid leads are way less than 1%, and they're sold to us like they're the Holy Grail.
