Questions to ask before buying leads

Before buying real estate leads, get seven answers in writing: where the leads originate, how the contract defines “exclusive,” what qualifies a lead for replacement, how long the term runs and how it renews, what you will truly pay per delivered lead, whether you can legally email the contacts, and how fast a lead reaches you after capture. A vendor comfortable answering all seven on paper is a vendor you can evaluate. Evasion on any one of them is itself the answer.

1. Where do these leads come from?

Ask for the specific channel — their own ad campaigns, a valuation funnel, a search site they operate, or inventory bought from someone else. Origin predicts intent better than any adjective in the sales pitch, and the mechanics of each pipe are laid out in where do lead companies get their leads. The walk-away sign is a vendor who describes the product (“motivated buyers”) but will not describe the pipe.

2. What does “exclusive” mean in this contract?

Not in the pitch — in the contract. Exclusive to how many agents, for how long, and does the company retain the right to remarket the contact later? “Exclusive” ranges from never sold to anyone else, ever to not sold to a second agent in the same week. The clause-by-clause decoder is lead-company contract terms; get the definition quoted back in writing before comparing prices, because a shared lead at $40 and a truly exclusive one at $250 are different products.

3. What makes a lead replaceable?

Every vendor advertises replacements for “bad leads”; the definition decides whether that promise is worth anything. Wrong number and duplicate are usually covered. Unresponsive, “just looking,” and already-has-an-agent usually are not — and those are most of the disappointing outcomes. Ask for the claim window too: a 48-hour limit on flagging a bad lead quietly voids the policy for anyone who calls their leads on a weekend.

4. How long am I committed, and how does it renew?

Month-to-month, a fixed term, or a term that auto-renews unless cancelled inside a notice window — and if there is a window, how long, and delivered how? Auto-renewal with a 30–60 day written-notice window is among the most common complaints agents raise about lead contracts. Calendar the notice date the day you sign, or negotiate the clause out.

5. What will I actually pay per delivered lead?

Subscriptions hide the unit price. Divide the monthly fee by the guaranteed minimum delivered leads — not the projected volume — and compare that number against the published Canadian going rates on what leads cost in Canada. While you are there, ask what happens in a short month: does undelivered volume roll over, credit, or vanish?

6. Can I legally email these contacts?

Under CASL, consent recorded by the lead company does not automatically become consent for you, and the burden of proving consent sits with whoever hits send. Ask what consent language the person saw, whether records are provided per contact, and whether you are named at capture — the full analysis is can I email purchased leads under CASL. A vendor who answers “our list is fully compliant” without producing records has answered a different question.

7. How fast does a lead reach me after capture?

Minutes matter: conversion odds collapse as an internet lead cools, so a vendor batching deliveries nightly — or worse, weekly — is selling you leads at a fraction of their captured value. Ask for the median capture-to-delivery time and the delivery mechanism (instant email/SMS/CRM push versus a portal you must remember to check), and make sure your own follow-up system is wired to respond the moment delivery happens.

The quick-reference version

Seven clean answers still only make a vendor evaluable — whether buying is the right move at all is the cost-per-closing question worked through on buy real estate leads in Canada.