New year, new opportunities! Last year saw a landmark legal settlement and commensurate compliance and compensation rules. The market continues to be tight, and rates haven’t come down as we had all hoped this time last year. All of this begs the question: what are the best 3 lead sources to focus on in 2025?

While there are numerous options available, understanding the categories of lead sources can help you focus your efforts. Let’s break down the four types of lead sources: repeat and referral, free leads, fee leads, and ego leads.

1. Repeat and Referral Business: As is the case every year – every. single. year. – generating more business from your Sphere of Influence is priority #1. Building and nurturing relationships within your sphere can and should generate a consistent stream of referrals. At the end of the day, people do business with people they trust, and no source of business is better when trust has been transferred through a referral! While it may take time to activate these leads, investing effort in your network always pay off over time.
2. Free Leads: The second general source of business are free leads. These leads require your time and effort but come at no financial cost. By engaging in activities like open houses, door knocking FSBOs, community events, and networking opportunities, you can generate leads without spending money. The beauty of free leads is that you are in control; the more time and energy you invest, the more results you’ll see.
3. Fee Leads: If you have some budget available and your time is valuable, consider fee-based leads as your third source. Platforms like Zillow and Homelight provide opportunities to purchase leads, either by paying up front or through a referral fee model where you pay after closing a deal. If you’re newer to the business, referral-based leads mean less commission earned, but you risk no money on the front end. This model can be particularly advantageous for newer agents who want to dip their toes into lead purchasing without significant financial risk.
4. Ego Leads: These are leads to be avoided at all costs! Beware of purchasing advertising or ‘branding’ designed to make you look good. These lead sources are expensive and provide no direct return on investment besides satisfying your ego!!. Trust me, I’ve done plenty of ego-based advertising and it’s the equivalent of throwing money out the window.

So what are the three best lead sources for 2025? Your primary focus should be on your sphere of influence to generate repeat and referral business, followed by free lead generation activities, and finally, exploring fee-based lead sources as your budget allows. If you are newer to the business or money is tight, it’s SOI and two free lead sources.

If you’re feeling overwhelmed by the multitude of lead sources available, don’t worry! I will be offering a two-hour continuing education (CE) course on January 15th from 9 AM to 11 AM, (register here) where I’ll discuss 25 different lead sources for 2025. I will identify 6 free lead sources, 17 fee lead sources, and discuss the pros and cons of each.

Not only will you earn two hours of CE credit, but we’re also providing breakfast—so come early to enjoy some food before diving into the session! If you can’t make it in person, a virtual option (register here) will be available, allowing you to participate from anywhere.