‘Lead generation is bad for the housing market and bad for agents’ – claim
BestAgent founder Charlie Lamdin says 'lead gen' tech leads vendors to choose an agent to sell their home based on the wrong reasons.
The growth of lead generation as a key way to win instructions means vendors and landlords are increasingly choosing agents for the wrong reasons, Best Agent founder Charlie Lamdin has warned.
Speaking during his inaugural live breakfast broadcast, he says lead generation platforms like the big portals enable bad agents to present themselves on a par with much better agents which, Lamdin claims, is bad for both the industry and for home movers.
His comments were prompted by the news this week that OnTheMarket’s has launched a lead generation platform to help agents find landlord leads.
“Lead generation as a whole subject is a real bugbear of mine,” he says during the video.
“It is the root cause of most of the industry’s problems, even more so for movers than it is for agents.
“If someone was to wave a magic wand and all the lead gen platforms like the portals were to disappear, and there were just agents and the public, everyone would still get the same amount of business – people need to sell their houses with or without lead gen.”
BestAgents last month colourfully illustrated what happens when agents do fight over an instruction, with or without lead generation.
Lamdin’s assistant Samantha Westlake filmed herself inviting 18 local agents to pitch for her instruction after she decided to sell her house in a village near Taunton in Somerset.
Lamdin founded BestAgent in 2017 to help consumers find the ‘best agent’ in their area to sell their home based on data.
Lead Gen exists because agents typically can’t be bothered with/don’t have the stamina to consistently work at getting the attention of potential Vendors & Landlords earlier, when they are starting to think about selling/renting. So it all comes down to grabbing the 3-5% of those ready to act NOW and entering a breakneck speed beauty parade/race to the bottom on fees.
In an ideal world there would be long term strategies in place to capture ‘leads’ early and build a relationship then other short term strategies (such as Lead Gen) to mop up those who’d slipped through the net.
But that takes a lot more consistent effort than a quick Facebook ad linked to a valuation tool…
Lead Gen companies are creating the loudest noise in the industry at the moment, from Boomin and GetAgent to OTM and Homesearch. Add to those, content writers and gurus and one feels like one is in a kaleidoscope of distraction…..
Agents know how to create opportunities in their community, they just need to get on with forging the best reputation and being consistent; the work will follow…..