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I watched an agent on my team do the math three times before she believed it.
She’d just spent $4,000 on leads over two months. Closed one deal. Made $6,000 in commission. She was excited about the win until I walked her through the real numbers.
“So you made $6,000,” I said, pulling out a notepad. “But you paid $4,000 for the leads. That leaves you with $2,000. Now subtract your brokerage split and taxes.”
Her face changed as the reality hit. She wasn’t just breaking even – she was in the red.
“But Cheesette,” she protested, “I needed those leads. I don’t have enough people to call.”
I handed her my phone. “See that number? 934 contacts. That’s 934 leads sitting in my pocket right now. Free leads. When’s the last time you called everyone in your phone?”
Silence.
This is what I call the McDonald’s Syndrome. You go to the grocery store, spend $1,000 stocking your refrigerator with everything you need to feed your family for weeks. Then you drive straight to McDonald’s for dinner.
You’ve got food in the house – good food, free food – but you’re paying for junk that doesn’t fill you up and isn’t good for you.
That’s exactly what happens when agents buy leads while ignoring the goldmine sitting in their contact list.
The Hidden Mathematics of Lead Addiction (And Why 30 Agents Are Calling Your “Exclusive” Lead)
Let me break down what lead companies don’t want you to know about their business model.
When you pay $1,000 a month for leads, you’re not the only one writing that check. That “exclusive” lead you just paid for? Thirty other agents in your market paid for the same name and phone number. By the time you call them, they’ve already been contacted by dozens of other realtors.
Here’s the math that kills most agents:
Month 1: You spend $1,000 on leads. You’re excited, motivated, ready to convert. You call every lead within 24 hours. You convert 2% (which is actually above average for paid leads). You close one deal worth $8,000 commission.
The Real Numbers: $8,000 commission minus $1,000 lead cost minus brokerage split minus taxes leaves you with maybe $2,000. You worked 60 hours for $2,000. That’s $33 per hour before you factor in gas, phone bills, and other business expenses.
Month 6: You’ve spent $6,000 on leads. The novelty has worn off. You’re not calling them as quickly. Your conversion rate drops to 0.5%. You close one deal every other month. You’re now losing money every month while working more hours than ever.
Compare this to my systematic approach with sphere leads:
I called 50 people from my contact list last month. Zero cost. Had meaningful conversations with 47 of them (94% connection rate vs. 12% with paid leads). Generated 3 listing appointments and 2 referrals. Closed $47,000 in commission that month from those conversations alone.
The difference isn’t talent or luck. It’s understanding that **relationships convert, not leads**. When you call someone in your phone, they answer because they know you. When you call a paid lead, you’re interrupting their day as a stranger.
The Grocery Store Revelation (What’s Actually In Your House)
There’s a principle from the Bible, Second Kings, where a widow needed money to pay off debt. The prophet asked her one question: “What is in your house?”
She thought she had nothing. But when she looked – really looked – she found a small bottle of oil. That small bottle became the source of her financial breakthrough.
Most agents are that widow. They think they have no leads, so they spend money they don’t have on leads they can’t convert. But when I force them to actually look at what’s in their house – their phone, their email contacts, their social media connections – they discover they’re sitting on a goldmine.
This reminded me of the fact that every Monday, I come live on Youtube at 8:30 to host CEO Bible Study so you can learn how to apply the word of God in your business. Make sure you’re subscribed to my YT channel!
Back to business now…
Here’s what’s actually in your house right now:
Your Phone Contacts: Every number in your phone represents potential business. Even if someone bought a house five years ago, they have coworkers, family members, neighbors who need real estate services. The average person knows 250 people. If you have 100 contacts, that’s access to 25,000 potential connections.
Your Email List: Everyone who’s ever emailed you about anything. Sort by real estate-related conversations. You’ll find past clients, prospects who didn’t buy, referral sources you forgot about.
Your Social Media Connections: Facebook friends, Instagram followers, LinkedIn connections. These people see your posts but you never actually talk to them about real estate.
Past Client Files: When’s the last time you called every past client? Not to sell them something, but to check in. Past clients refer 4x more business than any other lead source, but most agents call them once after closing and never again.
I had an agent audit her “house” last month. She thought she had maybe 20 people to call. We found 340 potential contacts across all her platforms. She’d been paying for leads while sitting on a database worth hundreds of thousands in potential commission.
The tragedy isn’t that agents don’t have leads. The tragedy is that they don’t recognize the leads they have because they haven’t developed the skills to convert conversations into business.
The Skill Atrophy Crisis (Why Paid Leads Make You Worse at Real Estate)
Here’s what nobody tells you about buying leads: it creates skill atrophy. The more you depend on purchased leads, the worse you get at the fundamental skills that build sustainable businesses.
Skill #1: Conversation Building
When you call someone from your sphere, you have to build rapport naturally. You ask about their family, remember their interests, create genuine connection. This skill compounds over time and makes you better at all sales conversations.
When you call paid leads, you skip straight to the pitch. You never develop the relationship-building muscle because you’re trained to treat leads like transactions, not people.
Skill #2: Follow-Up Systems
Sphere contacts require sophisticated follow-up because relationships develop slowly. You learn to nurture, to add value over time, to stay top-of-mind without being pushy. This creates systematic thinking that serves every part of your business.
Paid leads create desperation follow-up. You’ve paid for them, so you hammer them with calls and emails until they buy or block you. This trains you to be aggressive rather than systematic.
Skill #3: Market Positioning
When you call your sphere, you position yourself as a trusted advisor they already know. You’re not selling – you’re offering expertise to someone who values your opinion.
Paid leads force you to position yourself as “just another realtor” calling from a list. You’re competing on price and availability rather than trust and expertise.
I watched this happen to agents on my team. The ones who built businesses around sphere conversion became master conversationalists. They could turn any casual interaction into business opportunities. They developed systems thinking that scaled their income year after year.
The agents who relied on paid leads became order-takers. They could process transactions but couldn’t build relationships. When the market shifted and lead costs increased, they had no skills to fall back on.
The Dependency Trap:
Paid leads create dependency the same way drugs create addiction. You get a quick hit – a lead to call, something to do – but you never address the underlying problem: lack of systematic relationship building.
So you need more leads next month. And the month after. And when market shifts happen (like they always do), your lead sources dry up and you have no business foundation to sustain you.
The Conversion Reality Check (Why There Are No Bad Leads, Only Bad Skills)
“These leads are terrible,” agents tell me constantly. “Nobody answers. Nobody’s serious. They’re just tire kickers.”
Let me be direct with you: There are no bad leads. Only agents who don’t know how to convert.
A lead is just information. How can information be good or bad? It’s like saying a phone number is lazy or a name is unmotivated. The lead isn’t the problem – your conversion skills are.
Here’s what I mean:
The Same Lead, Different Results
I took a “bad” lead from one of my team members last month. Someone who’d been calling this person for three weeks with no success. “He’s not interested,” she told me. “Waste of time.”
I called him that afternoon. Used proper language patterns, asked better questions, positioned differently. Had a 45-minute conversation. Booked a listing appointment for the following week. Listed his house for $750,000.
Same lead. Different skill level. $22,500 difference in commission.
The Follow-Up Mathematics:
Most agents ghost prospects after one or two follow-ups. But the data shows that 80% of sales happen after the seventh contact. If you’re not following up systematically for months, you’re leaving 80% of your potential income on the table.
I have an 8×8 follow-up system (8 contacts over 8 weeks) and a 33 system (3 contacts over 3 months) for different types of leads. This isn’t about being pushy – it’s about being systematic. Most prospects aren’t ready to move immediately, but they will be eventually.
The Script Sophistication Factor:
When agents tell me leads won’t convert, I ask to hear their scripts. Ninety percent of the time, they don’t have scripts. They’re just calling and hoping something good happens.
Professional conversion requires professional language. Specific questions that create urgency. Objection handling that builds trust rather than creates resistance. Closing techniques that feel natural, not salesy.
I’ve developed scripts for every situation – cold sphere calls, warm follow-ups, listing presentations, buyer consultations. My agents practice these scripts weekly. Their conversion rates are 5-7x higher than agents who “wing it.”
The Relationship Investment Strategy
The highest-converting leads aren’t leads at all – they’re relationships. People who know you, trust you, and think of you first when real estate comes up.
This requires a completely different approach. Instead of asking, “Are you looking to buy or sell?” you ask, “How’s the family?” Instead of pitching services, you provide value. Instead of closing hard, you build long-term positioning.
This approach converts at 40-60% rates instead of 1-3% rates. But it requires patience and systematic relationship building that most agents aren’t willing to invest in.
The Market Shift Truth Bomb (Who Built vs. Who Bought)
Every few years, the market shifts. Interest rates change. Inventory shifts. Economic conditions create new challenges. And every time this happens, half the agents in the market disappear.
The agents who survive aren’t the ones with the most leads. They’re the ones with the strongest skills and systems.
The 2022-2024 Market Lesson:
When interest rates jumped from 3% to 7%, lead costs doubled overnight. Agents who’d built their businesses around purchased leads suddenly couldn’t afford their monthly lead bill. They had no sphere to fall back on, no systematic relationships, no conversion skills that worked without perfect market conditions.
Meanwhile, agents with strong sphere businesses actually grew during this period. Why? Because in uncertain times, people want to work with agents they know and trust, not whoever bought their contact information.
The Skills Transfer Test:
Here’s how you know if you’ve built skills or just bought activity: Could you move to a new market tomorrow and build a business from scratch in 90 days?
Agents who’ve developed true conversion skills can. They know how to meet people, build relationships, create value, and systematically convert conversations into business. Market conditions don’t matter because they’re not dependent on external lead sources.
Agents who’ve relied on purchased leads can’t. They need their lead service, their familiar market, their established pipeline. They’ve bought activity instead of building capability.
The Recession Revelation:
During the last major recession, 40% of real estate agents left the business. But it wasn’t random – there was a pattern. The agents who left were the ones who’d been buying their business instead of building it.
The agents who not only survived but thrived had one thing in common: strong sphere relationships and systematic conversion processes. They had people who trusted them enough to do business even in difficult times.
This is why I’m so passionate about teaching agents to build sustainable businesses. Not because I’m against paid leads philosophically, but because I’ve seen too many agents crash and burn when market conditions change.
The Phone Contact Revolution (934 Leads You’re Ignoring)
Let me show you how to mine the goldmine you’re already sitting on.
Right now, pick up your phone. Go to your contacts. Count them. I’ll wait.
Whatever number you got, multiply it by 4. That’s your real lead count. Because every person in your phone knows an average of 4 people who will need real estate services in the next 18 months.
The Contact Audit Process:
Here’s how I help agents discover leads they didn’t know they had:
1. Export all contacts from your phone, email, and social media into a spreadsheet
2. Categorize by relationship type: family, friends, past clients, business connections, acquaintances
3. Rate each contact 1-5 based on potential influence and referral likelihood
4. Create a systematic calling schedule: Start with 5s, work down to 3s over 30 days
The Database Conversation Framework:
When you call someone from your sphere, you’re not selling real estate. You’re maintaining a relationship that happens to generate real estate opportunities. Here’s the structure:
Opening: “Hey [Name], it’s [Your name]. I was thinking about you and wanted to catch up. How are things going?”
Genuine Interest: Actually listen. Ask follow-up questions. Remember what they tell you.
Natural Bridge: “I don’t know if you know, but I’m in real estate now. I’m not calling to sell you anything, but if you or anyone you know ever has real estate questions, I’d love to help.”
Value Add: “Actually, speaking of real estate, have you heard about what’s happening with interest rates? [Share one valuable piece of market insight]”
Future Touch: “I’m going to check in with you every few months just to stay connected. I really value our friendship.”
The Compound Effect of Consistency:
When you systematically work your sphere, amazing things happen:
Month 1: People remember you do real estate
Month 3: They start sending you market questions
Month 6: They refer their first person to you
Month 12: You’re the only realtor they know personally
Month 24 You’re getting 60% of your business from referrals
This creates what I call “momentum marketing.” Your past success generates future opportunities without additional advertising spend.
The System Building Blueprint (From Chaos to Conversion Machine)
Here’s how to build a lead conversion system that works regardless of lead source:
The Foundation Layer: Mindset Shifts
Before you build systems, you need to think differently about lead generation. Most agents think it’s about getting leads. Elite agents know it’s about building relationships that happen to generate real estate transactions.
This shift changes everything:
– You stop chasing and start attracting
– You focus on lifetime value, not single transactions
– You build systems for consistency, not just activity
The Structure Layer: The 8×8 and 33 Systems
Every lead gets systematically followed up using one of two systems:
8×8 System (Hot Leads): 8 contacts over 8 weeks
– Day 1: Initial conversation
– Day 3: Value-add follow-up (market report, neighborhood info)
– Week 1: Check-in call
– Week 2: Relevant article or resource
– Week 3: Market update call
– Week 4: Social proof share (testimonial, recent sale)
– Week 6: Direct offer to help
– Week 8: Quarterly check-in transition
33 System (Warm Leads): 3 contacts over 3 months
– Month 1: Initial conversation and value add
– Month 2: Market update and soft check-in
– Month 3: Quarterly newsletter and availability reminder
The Execution Layer: Scripts That Convert
Every contact has a specific script designed for that stage of relationship. No winging it. No hoping for the best. Professional language that moves conversations forward naturally.
The Measurement Layer: Tracking That Matters:
Track inputs, not just outcomes:
– Conversations per week
– Follow-ups completed
– Appointments booked
– Conversion rates by lead source
This gives you control over your results instead of hoping for luck.
Your 90-Day Sphere Dominance Plan
Stop buying leads. Start building relationships. Here’s your specific action plan:
Days 1-30: Database Discovery and Organization
– Export all contacts from every platform
– Categorize and rate every contact
– Create systematic calling schedule
– Begin daily calling routine (minimum 5 sphere contacts daily)
Days 31-60: Script Development and System Implementation
– Master the database conversation framework
– Implement 8×8 and 33 follow-up systems
– Track all conversations and outcomes
– Refine scripts based on real results
Days 61-90: Scale and Systematic Growth
– Expand calling to 10 sphere contacts daily
– Add systematic value (market reports, newsletters)
– Begin referral request process
– Measure and optimize conversion rates
The Investment Comparison
Paid leads: $1,000+ monthly, 1-3% conversion, dependency on external source
Sphere development: $0 monthly, 40-60% conversion, compound growth over time
The choice isn’t just about money – it’s about building a business that serves you instead of enslaving you to monthly lead bills.
Beyond the Lead Addiction (Building Wealth That Lasts)
Here’s what nobody tells you about real estate success: The agents making $500,000+ annually aren’t the ones with the most leads. They’re the ones with the strongest relationships and most systematic approach to nurturing those relationships.
The Wealth Building Equation
Sustainable real estate wealth = Strong relationships × Systematic follow-up × Consistent value delivery × Compound time
Notice that “lead count” isn’t in that equation. Because leads don’t build wealth – relationships do.
The Freedom Factor
When you build your business around systematic relationship development, you create something paid leads can’t give you: freedom.
– Freedom from monthly lead bills that drain your profit
– Freedom from dependency on external companies for your income
– Freedom from market shifts that kill lead sources overnight
– Freedom to scale your business instead of just buying more activity
The Legacy Component
The most successful agents I know built businesses that could survive without them. They created systems for relationship building, not just personal relationships. Their businesses became valuable assets, not just jobs requiring their constant presence.
This is only possible when you focus on building skills and systems instead of buying leads and hoping for conversion.
You have everything you need right now to build a million-dollar real estate business. It’s sitting in your phone, your email contacts, your social media connections. You don’t need more leads – you need better systems for converting the relationships you already have.
The agents who figure this out in the next 90 days will dominate their markets for the next decade. The ones who keep buying leads will keep struggling, month after month, wondering why success feels so expensive and exhausting.
The choice is yours. But choose quickly – because while you’re debating whether to invest in your skills or buy more leads, your competitors are building the relationship-based businesses that will make them wealthy.
The How to Start and Structure Your Real Estate Business 5-Step Training Module isn’t another course about mindset and motivation. It’s a complete system for building the kind of business that generates $500,000+ annually from relationships, not lead purchases.
You’ll get the exact frameworks I use with my coaching clients who’ve gone from struggling with paid leads to dominating their markets through systematic relationship building. This includes the scripts, systems, and step-by-step implementation plan that turns your contact list into a consistent income machine.
But here’s what you won’t get: another theory-based course that leaves you wondering how to actually implement what you learned. This is designed for agents who are done making excuses and ready to build something that lasts.
The investment is $199 – less than what most agents spend on leads in a week. The difference is this investment teaches you to fish instead of buying you fish. And in a business where your income depends on your skills, learning to fish isn’t optional anymore.
The agents who invest in their skills today will own their markets tomorrow. The ones who keep buying leads will still be buying leads five years from now, wondering why success costs so much and delivers so little.
Which agent will you be?
This is your last chance to join as we are going to close the doors soon! – register here now!