It seems that hardly a week passes that I do not get unsolicited email to advertise in “The Best Agent Web Referral Directory.” One directory covers the entire nation, another just specific states. One is only $19.95 per year, another is $99.00 per year for each specific locale, and there are dozens in between.

On the face of the offers, these directories sound like a deal. However, extreme caution and a dash of common sense are called for prior to sending in your money. While there are many good directories and web referral sites out there, there are also many that look like they were created by my teenage son on a bad day.

How can you tell the difference? Review, inquire and investigate. Look for a directory backed by a company that knows the real estate business. It only takes one solid lead to equal thousands in earned commission. So, you should not expect hundreds of leads…just a few good solid ones with the potential for you to turn them into closed sales.

Your chances of closing a sale via a directory referral are better if the lead comes from a reliable real estate source, and there are several good ones to consider.

Though not thought of as a directory, Realtor.com in a very real sense is just that. With their heavy advertising, and huge Realtor data base, Realtor.com is perhaps the prime example of a real estate directory. The directory is a feature called "Find a Realtor." Realtors in good standing with the National Association of Realtors are listed free of charge, much like a White Pages. To get an enhanced listing in the directory, with more links and more information about you, you must be a Realtor.com I-LEAD Web page subscriber. On the down side, Realtor.com's huge data base of agents appears to dilute the potential results for the individual Realtor. But that is exactly why it works as a directory. Its large size and prominence in the marketplace makes it the ideal place for consumers to turn to in order to find a Realtor.

Realty Times has its own first-come-first-serve Agent Locator directory which seems at their very modest cost of $50 annually to be a good solid replacement for or an addition to a Realtor.com listing. A featured news service for most major portals, including Yahoo!, Lycos, and Go.com. Realty Times is seen by over half a million consumers monthly.

Realtor.com and Realty Times share several things in common: they are the leaders in their fields, they are resources used regularly by consumers, and they have solid reputations with Realtors. But what if you get a solicitation from an unfamiliar directory without such qualifications? Should you spend your money? Below are some guidelines to help you with your Internet real estate directory advertising decisions:

• Visit the site. Is it professional looking in appearance? Easy to navigate? Are there other agents listed for your city? Are there additional perks for agents who have purchased other products such as lead generation tools?
• Inquire as to the site’s traffic. How much in the last month? From what sources is the traffic coming? If from advertising, where can you view their ads? What is their advertising budget for the year?
• Find the company's site in search engines. If you were in need of real estate services in your locale, does this site come up on page one, two or three of the search engine keyword results?

Now let’s look at the reasoning behind each question:

If the site is not up … pass! The site must look professional and be easy to navigate or visitors will quickly click off. It’s okay to be the only agent for your locale, but far more conservative to join with others. More importantly, contact the other agents to solicit their confidential agent-to-agent opinion of the directory. Try this for near-by cities if you feel it will provide a more objective opinion.

Traffic is the key to the success of any web site, but be aware that overall directory traffic could be very misleading. How and where a directory advertises not only determines the amount of traffic, but also the quality.

A good directory will rank high in specific real estate keyword searches. If the surfing public cannot find the site, what good is it?

Be equally cautious about referral sites, a variation on directories. Recently, I’ve received email offers for real estate direct-buyer referrals. After a long conversation with a representative for one firm, I was told a story that went like this: “We do loans and have thousands of banners ads all over the web. We’re getting interested buyer inquires from all over the country and are looking for top agents to service these leads.” The big story goes on how their system works, the 25% referral fee and how most zip codes are filled but the one I’m interested in is still available. It finally ends with a request for $200.00 plus a one-time set up cost. Legitimate? Perhaps! Review answers one and two above. Are these firms out just for the set-up fee? Sure you may get referrals, but of very low quality. This may be more of a time waster than a money-maker!

Published: May 24, 2001

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Bob Schwartz is a Certified Residential Specialist, real estate broker specializing in San Diego real estate & co-owner of an Internet search engine optimization firm, WebsiteTrafficBuilders.com, specializing in domain name registration and Internet domain website hosting. Bob received his BBA majoring in real estate & computer programming. Bob is an expert witness for major San Diego law firms, has served on the Consumer Affairs Community of the San Diego Association of Realtors, is past president of a local HOA and co-owner of a condominium management Co., and directs a multi-state high traffic network of legal directory sites. You can visit Bob's San Diego real estate site at BrokerForYou.com.