December 4th 2024

FCC’s New Lead Generation Rule Takes Effect January 2025

FCC’s New Lead Generation Rule Takes Effect January 2025

FCC’s New Lead Generation RuleTakes Effect January 2025

FCC Cracks Down on Lead Generation

Starting in January 2025, the FCC’s new rules for lead generation will go into effect. If you’ve ever purchased leads or a list of prospects, whether from a portal or another provider, these new regulations could limit your ability to call or send text messages to them.

The new FCC rules require real estate agents to get permission directly from the consumer to send them automated calls or text messages. For example, if you purchased leads from one of the real estate portals, you cannot send them automated voicemails, AI generated voice calls, or automatic text messages.

The reason for the new ruling is to reduce the amount of spam calls and texts consumers get from businesses and people they don’t know. When a consumer requests information from a real estate portal, the consumer doesn’t realize their request for information is being sold to real estate agents… who will contact them and attempt to turn them into a customer.

NOTE: This article is not intended as legal advice. Be sure to consult with an attorney before making decisions related to the FCC ruling.

What is NOT ALLOWED by the FCC Lead Generation Ruling

When you purchase a lead, you can not send them an automated call (or voicemail), use AI generated voice calls, or send automated text messages, unless they give you direct consent allowing you to communicate with them. This includes having the lead entered into a text message drip sequence.

What IS ALLOWED by the FCC Lead Generation Ruling

There are a few exceptions to the new FCC rule:

  • Prior Express Written Consent: If a consumer has given you prior written consent to receive calls or emails, you might be exempt from the lead generation rule. This consent must be clear, and you have to provide proof of the consent if challenged.
  • Existing Relationships: The new FCC rules do not apply to calls or emails made to people you have an existing business relationship with. This means you can continue to communicate with current and recent customers. 
  • Personal Relationships: Calls or emails made to your personal contacts and connections are not subject to the lead generation rules.
Tips for Real Estate Agents & Brokers

Although you can’t contact purchased leads through automated means, you may be able to contact them through direct, personal communication. 

Be aware of Do Not Call List regulations you must comply with if you are communicating personally with purchased leads.

Increase your outreach to your sphere of influence and focus on building lasting relationships with clients over transactional deals.

Since you could experience a loss of leads and decreased conversion rates, you may need to increase the number of lead sources you have, as well as the amount of prospecting activity you do to generate more opportunities for you to work with.

Sources:

https://docs.fcc.gov/public/attachments/FCC-23-107A1.pdf 

https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/more-telemarketing-lawsuits-ensnare-agents-brokerages

https://www.wavgroup.com/2024/02/13/new-fcc-regulation-deals-blow-to-real-estate-lead-generators/

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Chris Scott

Chris Scott is a real estate digital estate marketer and shows real estate practitioners how to market themselves to get recognized in their local markets for the service they provide. He hosts weekly webcasts to an audience of 4000 real estate professionals every month, manages social media accounts with over 200,000 followers, runs a team that generates over 5000 leads per month, and manages marketing for his real estate firm in Austin, Texas. Chris is co-author of the real estate business book Blueprint: The Agent's Guide to Building a Thriving Real Estate Business.

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