HUGE FCC Lead Gen Changes for 2024
Game Changing News out of the FCC this week that will shake the industry, forcing lead gen changes to all real estate business nationwide. It will directly impact much of the core business model of Zillow and RDC (realtor.con) and those that rely on their leads.
Mass market lead gen has really gone off the rails. As an example, around 150M leads were generated in the US for Real Estate this year, and there were fewer than 5M transactions. The TCPA rules have been updated to close the lead generator loophole. The goal is to reduce spam for consumers (and we all want less spam). As Real Estate transaction facilitators, the core of the business has been about the 1:1 relationships and referrals. Yet the industry has used the “easy button” of mass portal lead gen for decades. This FCC change this week will help return real estate sales back to its relationship driven roots.
The Impact of the FCC Ruling
-In 2024, new real estate leads will become exponentially more expensive as the shift begins, and when enforcement begins this summer, new lead volume will be drastically reduced.
-Crackdown on lead sharing: Selling consumer information to multiple sources will be prohibited. Today the same lead in real estate may be “sold” to as many as 3-5 different agents. This is no longer be possible and will mean fewer leads and higher cost per lead.
-One-to-one consent: Organizations who purchase leads have to get explicit, individual consent from each consumer before contacting them. This eliminates the ability to leverage leads from mass marketing campaigns based on generic consent forms.
-“Logically and topically related:” Consent only applies to services aligned with the interest a consumer originally expressed. Consumers will have to select a specific realtor to represent them, by name.
As Real Estate transaction facilitators, the core of the business has been about the 1:1 relationships and referrals so this is good news for teams and agents who have maintained relationship selling at their core. It will be an abrupt change for those that rely on mass lead gen.
Your Database, Your Listing
At Revaluate, we got your back. We believe strongly that if it’s in your database, it should be your listing. The foundation to winning listings in your database is having correct contact data. IE: if you don’t have the physical address, you cant do a CMA, drop off a pie or even send them direct mail. That’s why we launched our data grade and audit tool… for free. Grade and Audit your database for free. Together we can audit, grade and repair your database to prepare you for the lead gen changes of 2024. It’s your database, it should be your listing.