Bettina, here's a followup response to a similar question at
http://www.agentsonline.net/forums/ubbthreads.php/ubb/showflat/Number/187263#Post187263I'd avoid spending any money on leads without having someway to turn them to clients. My research on house.com found that they receive approximately 35,000 unique visitors a month. Compare to my favorite lead generator Homegain.com which receives 3 million unique a month. Any lead is better than no lead when you pay close attention to lead guarantee/accuracy and conversion.
Below is a company with 1 million+ unique visitors a month and generated only $15,000 in monthly revenue. They managed to spend $10 million a year to drive traffic to their site.
This week the company shuts down and announces plan to auction off its assets.
http://www.techcrunch.com/2007/12/06/edgeio-to-shut-down-in-the-deadpoolAs these companies continue to improve their sales tactics/ conversion techniques on you and I, lead buyers ( that's us )
should work on our conversion and sales tactics...or we'll end up spending $10 million to drive people to our sites for no return.
Many agents today despise lead generators but the idea of "leads" itself does not cause failure. The real causes include
fake leads
poor response time
cold leads ( those looking to take action 6-18 months from now )
agent inability to convert
Many agents tend to focus on problems caused by bogus leads however the other three are even more costly.
I hope this helps a little.