Leads are potential customers for your business and every real estate business wants the potential sales that result from them. However, it can’t be denied that a definite sale— a done deal—is the better outcome after all the lead generation strategies that your team has planned and executed. You want the villa with a beachfront sold, the grass by the white picket fence hammered with your red and white sign. What’s the closest thing to that when it comes to lead generation services?

Paying for real estate leads at closing is the way that ensures you have got the lead locked down for you to be able to pay. As such, this method looks like the more sensible option. But is it? Let’s explore the pros and cons of paying for leads at closing and just how to do the deed.

real estate lead generation

[Also read How to Improve Your Mortgage Lead Generation Strategies]


It can be stressful looking for leads when all you want to do is concentrate on being a great realtor. Here are the advantages to paying for leads at closing:

  • Exclusive Leads. The lead will not be sent to every other real estate company around. You are the only one it will be going to. You do not have to compete with anybody else, no race to keep you on the edge. 
  • You Only Pay Once You Get the Lead. There are no out-of-pocket costs until you are sure to have it in the bag. These are high quality and most probably turn into a transaction.
  • Customer-Centered Service. If you just want to focus on your real estate and your services then you will have more time and attention for it because you don’t have to worry too much about YouTube ads, sales funnels, PPC, and all the extra fluff that comes with digital marketing. Do what you’re good at. Have more free space to be an awesome realtor.


Not every strategy is perfect while providing nothing but sunshine and rainbows. Here are some disadvantages to paying for leads at closing: 

  • Smaller Part of the Whole. Since you do not have to pay upfront you might think you can get your cake and eat it too. However, commission rates can be up to 25-50% with this type of payment plan. Convert your leads and do all the necessary steps to follow up to get a higher ROI. 
  • Small Scale Enterprises Are At A Disadvantage. Real estate lead generation teams will want to work with businesses that are sure to get the sale since this type of transaction only works if you close in on your lead. This means the process is very selective and neophytes can have a hard time getting picked to work with pay-at-closing lead generators.
  • There Are More Rules. Real estate lead generators might have guidelines for who “owns” the potential buyer or seller. This means you are not sure if your client is yours for the long term and for all future transactions as stipulated in your agreement with the lead generation company. You could be forced to use software or keep reporting about your clients until after you have acquired the lead.

real estate leads

[Also read How to Choose a Lead Generation Agency]

Different Ways to Pay for Real Estate Leads at Closing

There are different ways to go about this method of paying for leads. Here are variations you can look into:

  • Try Pay at Closing Lead Referral Companies like Agent Fixup, Agent Pronto, and Referral Cloud. Many of these websites gather people who are looking for real estate agents. There are a few companies that include requirements such as a certain number of years in the real estate business, number of transactions completed, and good customer ratings and reviews. 
  • You can also utilize your future closings to pay for real estate leads. Some companies will give you a commission advance and then, once you and your broker have an agreement you can then pay the company a fee or part of the revenue you earned from the closed transaction. Examples of this kind of service are Commission Express and QCommission. 
  • Collaborate with Busy Real Estate Agents. Some just do not have enough time and manpower to keep up with the number of clients they have. Others also want to take a break but still have too many referrals lined up. You can work with these agents and they can receive a commission for each lead you close. There are also Facebook, Viber, and Reddit groups where real estate agents can connect and share their referrals. 
  • Enroll in a Real Estate Referral Network. These connections allow you to share and receive referrals. You can apply to a company with this system of referrals and even get more revenue for yourself by providing referrals for other real estate agents. These groups are diligent in weeding out any leads that will not work for you. 

Final Thoughts

Now that you know the good and the bad about paying for real estate lead generation at the end of the sales funnel you can choose for yourself whether you want this surefire way or if you want to gamble on a possibly cheaper but uncertain way of acquiring leads.