Kerry Dimmer
In an increasingly data-driven real estate market, cost per lead or CPL remains one of the industry’s most closely guarded metrics. While agencies rely heavily on lead generation to drive growth, few are willing to disclose how much they actually pay for those leads or how those figures are calculated, citing competitive risk and the complexity behind attribution.
Transparency versus competitive risk in lead generation
Many agencies regard CPL formulas as proprietary business advantages. Those prepared to share their thinking argue that transparency can demonstrate operational efficiency and help prove value both internally and to clients. Still, in a highly competitive environment, revealing too much can invite imitation, erode market share, and, particularly when competitors gain insight into specific marketing platforms and tactics, undermine competitive advantage.
The attribution problem: when one lead comes from many touchpoints
Another barrier is the difficulty of accurately measuring CPL in a fragmented marketing landscape. Multiple touchpoints often contribute to a single enquiry, making it hard to attribute value to a single channel. This challenge is highlighted by Gerhard van der Linde, MD at Seeff Pretoria East, who notes that lead attribution has become increasingly complex.
“A potential client might see a pole ad, for example, then receive a flyer, attend a show day, and only then decide to contact you. We therefore always look at the whole package of marketing and advertising, which includes flyers, show days, outdoor pole ads, dustbins, for sale and sold boards, online marketing campaigns, Seeff website, Property24 exposure, community involvement, cold calling, WhatsApp, email marketing, and maintaining relationships with existing and past clients.
Activity across all these areas contributes to lead generation, so it is difficult to calculate a specific cost per lead, as leads result from combined, ongoing marketing efforts. Word of mouth and referrals remain some of the strongest sources of quality leads in our market, however.”
Why brand, referrals and reputation defy CPL formulas
A similar view is shared by Andre Potgieter, Gauteng director at Tyson Properties. “It’s difficult to quantify a cost per lead. Often, we don’t know where the leads are derived because they could come from the online portals, billboards, an article in a publication, or someone hearing our CEO, Chris Tyson, interviewed on the radio.”
Potgieter adds that generational loyalty further complicates CPL calculations. “People who bought a home from Tyson Properties 20 years ago are now selling through us, and we are also working with a third generation of a family on another property. Whilst our latest addition of an extensive back-end technology and AI proves our leads have become more efficient and intuitive, we are more focused on our brand remaining well recognised and well positioned than CPL.”
Technology has changed marketing, but not attribution certainty
He also reflects on how the industry has evolved. “If we look at how properties are marketed today and the part technology plays, we realise that real estate has gone from being an industry that was not reliant on any technology to one that is completely reliant on it. Property portals and digital marketing have become key.”
Stock shortages reshape how buyers engage with agents
On the Atlantic Seaboard, buyer behaviour is also shifting. Ross Levin, licensee for Seeff Atlantic Seaboard, says that while online portals still dominate lead flow, scarcity of stock is changing how buyers engage.
When direct relationships outperform digital funnels
“However, given the current lack of stock, we’ve noticed a significant trend change in that buyers are contacting us directly via calls, walk-ins, or email in addition to a full suite of digital marketing tools used (website, mailers, window branding, etc.).
“In this market, prospective buyers want a direct and personal relationship with an agent who can source stock or notify them of new stock coming to market. This direct contact is proving to be very valuable, especially in a market where we are seeing record sales of properties that have never been listed or have just hit the market.”
The case for hybrid CPL models and selective disclosure
While many agencies avoid publishing CPL figures, Just Property Prosper is among the few willing to share actual numbers. The agency operates a hybrid model combining paid and earned media, according to Peter van den Berg, MD of the group.
“While we invest in strategic, measurable marketing platforms, we place equal value on long-term organic lead generation through exceptional service, referrals, landlord and tenant retention, and community-based positioning. Our view is simple: the lowest-cost lead is the one created through trust, reputation, and consistently excellent client experience.”
Why some agencies track transactions, not just leads
Van den Berg says the agency’s CPL ranges from R180 to R650, depending on the channel and product type. “Rental leads typically cost less due to our strong existing database and brand equity. However, because we track both volume and conversion, we measure success by cost-per-successful-transaction, not just cost-per-lead.”
He notes that multiple variables influence CPL outcomes. “This may include property value, location, audience targeting, competitive intensity, seasonality, and product type. For example, coastal and luxury properties require longer-runway campaigns with greater content depth and more brand touchpoints, whereas rental stock in high-demand areas performs better with short-cycle marketing. But our best value sits in a multi-channel funnel, where each platform plays a strategic role.
“For lead volume, property portals still perform extremely well. For relationship conversion, social media, agent-driven personal branding, and database-nurturing campaigns outperform all other methods. In short: portals create awareness, but relationships close deals.”
Rethinking value: quality, conversion and lifetime client loyalty
As the market evolves, many agencies are shifting focus away from headline CPL figures towards lead quality, conversion and long-term brand value.
“The industry must shift from ‘buying leads’ to ‘building value ecosystems,” says van den Berg. “A lead is not a name on a spreadsheet; it is a human being making one of the biggest financial decisions of their life. If agents invest equally into skill, content, service excellence, and community credibility, their CPL naturally decreases while their lifetime value per client multiplies.”
