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8 Hard Truths About Pay Per Click Lead Generation

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8 Hard Truths About Pay Per Click Lead Generation

Keeping new business flowing is part of every agent’s rhythm, and in today’s market much of that happens online. Paid advertising has become a key part of that mix, yet even with the best intentions, many campaigns fall short of expectations.

At Blok, we’ve spent years building and managing Pay-Per-Click (PPC) campaigns for agents and brokerages across different markets. Inspired by a great video from Josh Riles on 9 Real Estate Lead Generation Secrets Brokerages Hide From You we wanted to share some of his insights along with our own experiences, highlighting the biggest myths and truths about online lead generation, and what really makes the difference.

Advertising Isn’t Magic

Pay-per-click advertising is a tool, not a cure. All too often we speak with clients that are considering advertising from a place of urgency, with high expectations and short timelines to achieve results with limited resources. But advertising is not magic. 

Advertising can create significantly more opportunity much faster than many marketing channels, but it won’t fix deeper issues if your business isn’t prepared to capitalize on that opportunity. When the market is slow, it’s tempting to think “I just need more leads.” But if your follow up systems, value proposition, and relationship building tactics aren’t solid, running paid ads can quickly become an expensive exercise in frustration.

Should you decide to invest in pay-per-click lead generation, it should be part of a healthy, well-structured business, not a short-term fix when everything else feels quiet.

Real Results Take Time

Yes, we’ve seen multi-million dollar deals close in the first 60 days of an advertising campaign. But this is not normal. ROI takes time, experimentation and some risk tolerance. It often takes over 12 months to really see the payoff, especially in competitive markets

We’ve seen all the promises: “10 qualified listing leads in the first 3 months or your money back.” If it sounds too good to be true, it is.  

Be cautious of any company promising instant results. Optimization is a process, refinement is iterative, and the best performing campaigns often run for many months or even years. 

For perspective, the average sale cycle from online conversion to closing in a healthy real estate market is 6-9 months. This assumes consistent, effective follow up. Persistence is rewarded, and it takes time to build a healthy pipeline that creates financial ROI every month. If you only have 3 months of budget or patience for a miracle to happen, advertising probably isn’t the ideal solution. 

Setting realistic expectations also helps. Every lead is not going to convert into a closing. Industry metrics from the National Association of Realtors® show that the online real estate lead conversion rate is between 0.5% and 1.2%, so build your goals on conservative numbers and patience rather than instant ROI.

Lead Gen is Not Referral Gen

The distinction is commonly missed. The purpose of PPC lead generation is to create opportunity beyond your sphere of influence, but opportunity is just that – opportunity

Converting a click into an email address or a phone number is only the first step in turning a dollar spent into a dollar gained. Each opportunity must be converted into a human relationship. That relationship must turn into a bound contract. Every contract must make it to the closing table. And the entire process is susceptible to external factors that you can’t control inside of a Google Ads or Meta account.

A well-optimized PPC campaign can generate a steady stream of opportunities at a relatively low cost. That said, no marketing partner can close the deal for you. Sometimes there’s an expectation that every lead should be ready to book a tour or list their home immediately — but that’s rarely how it works. PPC leads are just starting to get familiar with you. It takes a follow-up, adding value, and relationship-building to turn a click into a client.

Unlike referrals, when a trusted party advocates on your behalf, working even high-quality PPC leads can be more akin to cold call sales. So it’s important to consider if PPC is the right approach for your business. 

If hearing “no” or being hung up on sends a chill down your spine, PPC may not be the best approach for your business style. 

PPC Ads Work Best As Part of a Bigger Strategy

PPC ads can run on their own. But the overall, long-term results are almost always stronger when your brand is backed by a well-rounded marketing presence.

Your website, social media, SEO, and client reviews all help build the kind of legitimacy and recognition that make people more likely to click and, more importantly, to trust you once they do.

So while PPC can stand alone, it performs best when it’s supported. Think of it as one part of a bigger picture: your ads drive attention, and your broader marketing gives people a reason to believe in what they see.

Quality over Quantity

It’s easy to assume that more leads mean more success, but that’s not always how it works. The best campaigns focus on attracting the right people at the right time and then nurturing those relationships properly.

Getting there takes some fine-tuning. Your keywords should reflect real intent, like “homes for sale in [your neighborhood]” instead of broad phrases such as “buy a house.” Your ads should also speak directly to your audience.

A well-structured campaign with accurate targeting and monitoring might bring in fewer leads, but they’ll be the ones more likely to convert because they’re genuinely interested in what you offer.

Systems Can Make or Break a Campaign

Even the best ads won’t help if your backend isn’t ready. You need a solid system to capture, track, and respond to every lead, ideally one that notifies the right person the moment a new lead comes in and keeps them warm with automated messages or drip campaigns.

When that system isn’t in place, leads get lost. It’s easy to blame “bad leads,” but often the issue lies in how they were handled. Setting up a clear process for follow-up, recording every touchpoint in your CRM, and reviewing what’s actually happening behind the scenes can make a huge difference.

If you don’t have the internal structure or manpower for this yet, it’s better to fix that before you start throwing money at lead generation.

Solid Communication Skills Are Essential

Internet leads usually take longer to convert because they don’t know you yet. They need consistent, thoughtful follow-up, not one quick call and a “maybe next time.” If you don’t already have experience working cold leads, it’s worth learning that skill or having someone dedicated to it before you spend heavily on ads.

And on that note, whoever is communicating with leads must be prepared to know exactly what your business is, your core differentiators, the value you bring, and they should be ready to effectively share this information when they start reaching out.

Response time also matters more than most people realize. Studies show that contacting a new lead within 5–15 minutes can massively improve your conversion rate, while waiting even half an hour can cut your chances dramatically. Make sure your CRM or team process allows for fast first contact and consistent follow-up.

Make Sure Your Landing Page Delivers

Getting someone to click your ad is only step one. What happens on your landing page determines whether that click becomes a conversation.

Your landing page should match the tone, promise, and professionalism of your ad. If it looks outdated, doesn’t load properly on mobile, or doesn’t give users what they expected, they’ll leave immediately. 

Use clear and simple forms, and make sure your call to action is obvious. Small design tweaks, like moving your form higher up or adding a testimonial, can have a surprisingly big impact.

The Bottom Line

At the end of the day, every lead costs something, whether it’s money spent on ads, time spent on social media, or effort poured into SEO and referrals. The goal is to make sure that investment pays off in a way that feels sustainable and smart for your business.

If you’re going to run PPC campaigns, make sure your foundation is strong first: your systems, follow-up, and messaging should all be ready to handle what comes in. Once that’s in place, lead generation can be a powerful tool to help your business grow, not a source of stress or disappointment.

About Blok

At Blok, we fuse cutting-edge tech, purpose-built tools, and an expert team to deliver unmatched support for agents, teams, and boutique brokerages.
Our customizable solutions — spanning branding, marketing, back-office, and compliance — create a seamless foundation for growth. With synergy at the core, we empower real estate professionals to stay client-focused, scale faster, and reach new heights.
To learn more about Blok, visit: https://blok.co