Real estate agents are always looking at ways to increase leads and build a larger client base. New clients are the lifeblood of a successful real estate business. But can an agent survive on their social network alone?

Real estate writer Matt Jones did an analysis of client harvesting from one’s own social network, and the results were not compelling.

According to Malcom Gladwell’s blockbuster book The Tipping Point, the average adult has a network of 39 acquaintances. With how often your own friends need to buy and sell a home, even if you get 100% of their real estate transaction, you will be a hungry agent.

Expand that to their social network and you will get 1520 people, but now you have to compete with other agents in the growing network. Even if you split the pot evenly, based on average frequency of property buying and selling, you will each get just over a transaction a month.

But getting all of those deals takes a lot of time and effort, and money. How will you keep in touch with the 1520 friends and friends of friends? Direct mailing? Writing a newsletter? Personal phone calls?

Your time has a value, and direct mailings are expensive and don’t guarantee loyalty or a future sale. Instead, you are going to find yourself constantly chasing new business and possibly alienating your friends.

And the cost of your time and money to keep up with everyone is high no matter which route you take. If your time is worth $50 an hour, calling everyone will result in a $619 cost per lead.

At that rate, would your marketing be better off handing out $20 bills clipped to your business card?

Check out the whole article at News Genius.