Paying cash for leads - is it a good strategy or scam

[Roman Tomkiv]

As I'm working on my cash buyers list, I started reaching out to "we buy houses" type websites in my area, Connecticut, and came across one interesting site that sells leads. "Need to sell my house fast" site is apparently a lead generating website. I spoke with a guy who claims to generate thousands of leads nationwide and sells them to investors. Based on our conversation he sometimes charges $200-300 per good lead in Dallas area or LA. If the lead is on MLS he does not charge. I'm interest to hear if anyone heard about this marketing or this is a scam? It looks like a real great domain name and maybe he generates many leads, but I don't see how someone can pay $200-300 per lead without knowing any information about your lead generator.

Any thoughts? Thanks.