Selling Wholesale Leads

[Andrew Davis]

Hello,

I am thinking of selling leads to the wholesale community. The idea is we scout neighborhoods looking for distressed housing, generate a list of leads, and then sell an exclusive list of leads to an end buyer (wholesaler/Investor). 

I was curious what wholesalers would pay for this kind of information? Any other feedback is welcome.

Thanks!

[Jeff Filali]

Any legitimate investor would pay almost anything for good "pre-qualified" leads. I know, I'd pay $100+ per lead if they were pre-qualified and motivated sellers, who fit my criteria.  But as mentioned above, a list of addresses isn't good pre-qualified leads.  We currently spend between $3,000-$5,000 per month in advertising which is currently generating an average of 40-50 pre-qualified leads per month at an average cost of $75-$100 per lead.  But these are double opt-in leads where the homeowners fill out a lot of pre-qualifying information themselves and the leads have all the needed information to know they're motivated and there's a high potential to close the deal, and the leads eliminate a lot of the phone work that would be needed to collect needed information to make an offer. We still get some who want too much for their property, but around half are motivated and willing to take a fair price that works for us. We were producing twice as many leads for half as much per lead, but they were not as qualified, so it was taking up a lot of phone time on tire kickers.  We changed up our advertising and opt-in system, and tested various marketing until we improved it and the leads went down to only 1-2 daily on average now, but they're very high quality leads and we can close a lot more deals in half the time, so was worth the added expense per lead.  Gotta spend it to make it!!