Do online leads provide ROI for real estate agents?

In a recent Inman survey, more than seven out of 10 agents said they buy online leads. However, most agents said they do not get a good return on investment from this lead source. In fact, in 2014 online leads accounted for five percent or less of an average agent's deals. There are many reasons for the low conversion rate. Filtering a large quantity of unqualified leads to uncover the ones who are qualified is like panning for gold -- time-consuming and labor intensive with little payoff. Many agents don't have the tools and processes in place to nurture these leads, assuming they've done the hard work of filtering them to begin with. And then there's the larger question of whether or not you should target online leads in the first place. It costs six to seven times more to acquire a new customer than it does to retain an existing one. Most agents realize more success when they focus on their sphere of influence for referrals and repeat business. Existing clients are very valuable. The probability of selling to a new client is 5 to 20 percent, while the probability of selling to an existing client is 60 to 70 percent. And 83 percent of buyers would use their agent again and recommend that agent to others, yet only 17 percent of agents are rehired. Why? Because the agent failed to stay in touch, and the client does not remember their name. Don't become one of the forgotten. Remain helpful and visible within your sphere of influence and your bottom line will reflect your efforts.