FCC Rule Changes Hit Lead Generation  

Generating leads is not just a valuable skill but the lifeblood of success for real estate brokers and agents. Yet relying solely on purchased or third-party leads limits a company’s control over the quality and relevance of potential prospects. If that wasn’t enough, the Federal Communications Commission (FCC) passed new guidelines related to lead generation that will change the industry’s scope and process.

 The bottom line is that teams and companies need to become more reliant on generating leads for themselves. 

The Lead Generation Issue

Who hasn’t received an automatic or pre-recorded telemarketer call or text? These solicitations aren’t welcome because the telemarketer’s services are something the consumer doesn’t need or has zero interest in. As consumers, we wonder how they got our number in the first place.

The answer is simple. Comparison shopping websites are defined by the FCC as “websites that generate a consumer “lead” for a seller.” Think ShopZilla or PriceRunner, but also more industry-specific ones like Kayak or Zillow. These get your prior express written consent (PEWC) to receive telemarketing calls from their list of marketing partners. Typically, this PEWC happens when you provide your email through the check boxes asking you to approve their terms of service or to opt-in to marketing emails and calls.

Comparison websites have been required to disclose this list of third-party partners they use, usually done via hyperlinks and in the terms of service. The reality is most consumers don’t click the link to look or read these terms closely. So what do they do? They click the box and inadvertently agree to be contacted with artificial voice messages for auto-telemarketing. 

The New FCC Lead Generation Rules

The Telephone Consumer Protection Act (TCPA) already restricted using an autodialer system, pre-recorded, and artificial voice messages without a PEWC. 

What the FCC changed at its December 13, 2023, meeting relates to obtaining a PEWC for multiple companies with one click. Now, the comparison website must receive a PEWC, a “single seller at a time,” and must only market products and services “logically and topically associated” with the source website.

“We agree with the Joint Consumer Commenters, who argue that the “resale of consumer data by lead generators and lead aggregators significantly contributes to the problem of illegal calls,'” said the FCC in its Second Report and Order. It further explained that in closing this autodialer “loophole” and requiring one-to-one consent would cut back on the robocalls and robotexts end consumers receive.

The FCC has given lead-generating comparison shopping websites 12 months to adapt to the new rules.

Impacts on Real Estate Lead Generation

“The FCC rule only strengthens my stance on lead generation,” said Preston Guyton, founder of EZSearch.com. “Generating one’s real estate leads has become an indispensable factor for sustained growth and success.”

Reliance on national real estate portals has meant agents are paying high fees for a lead that has also been sold to 5-20 other real estate agents. And that lead may be something other than a bonafide, qualified prospect.  

This new FCC rule will force national portals to change their lead delivery systems. They will have to become more honest with lead delivery and sharing. 

According to Guyton, teams and companies need to become more reliant on generating leads for themselves. The cost per lead may increase, but so will the quality. Still, Guyton warns that if changes are not made, the team of real estate brokers and agents will look drastically different in 12 months. 

Notably, the FCC’s rule change does not completely halt the lead generation industry. Manual dialing is still allowable, and these comparison websites can sell leads to companies that do not use auto-dialers or pre-recorded messages. The Do Not Call requirements are still applicable. Live lead transfers are also acceptable. 

Benefits of in-house lead generation

By proactively generating leads in-house, businesses gain the autonomy to tailor their outreach efforts to align with specific target demographics, ensuring a more personalized and effective approach. This self-sufficiency fosters a deeper understanding of the market and allows for cultivating genuine relationships with potential customers. 

In essence, generating your own leads empowers organizations to take charge of their customer acquisition strategy. It’s a more solid foundation for long-term prosperity as a real estate business.