How much do you pay per lead generated from a website?

[Dan Turkel]

I'm considering purchasing leads from someone who builds websites and focuses on SEO. I've already seen his websites rank consistently in the top 5 results in Google searches for "must sell house now *city name*" for several different major markets. He explained to me that once he sets up the appropriate systems, he can start generating leads for me. He expects it will cost between $100 - $150 per lead generated.

I recognize and appreciate that these types of leads are of a different quality than say, for example, direct mail leads. With direct mail, you're pushing yourself onto the person who may or may not want to sell. With this type of internet marketing, you're generating leads that you know are looking to sell and could very well be motivated because they sought out you - not the other way around as it normally works with most forms of direct-to-seller marketing.

Has anyone had experience buying leads like this before? Any advice would be appreciated. Thank you!

[Tom Gimer]

@Dan Turkel That is way too expensive. 

Best advice is to build your own site and pay a professional to set up (and monitor) a paid search / ads campaign that targets your niche. Do some deals, build your brand. Before long there will be organic leads.

The model you are considering using is an endless cash going out cycle.