don't pay for on line leads - they generally are people who don't know they just signed up for a realtor to call them. 

On line lead generation. That is a cosmic term.

ALL leads are online. Even the postcard results in a Internet query.

So the reality is, you need to make some decisions.

Starting with, "What do you have the most of, money or time?"

Next. 'What does your business plan identify as your ideal client?" 

"What method did you commit to on your business plan to reach those ideal clients?"

Finally, "What do you have to offer?"

It should be clear now, in order to promote your solutions, you must  learn copy writing, SEO and leverage authority or BUY that expertise from others.

The challenge most encounter is spending their dollars on generic on-line marketing, and getting NO RESULTS. 

My spending is about $600 monthly through 4 venues. Conversion rates range from 12 to 28%.

Finding a system that actually works. Your question is pretty broad. AR could be considered 'online' lead generation. What doesn't involve the internet today?

I expect a decent return or I move along quickly. Can't tell you a percentage as I really don't have one. 

Nik De Good quality leads. Save your money and put it where it can work for you and be more productive.

The biggest challenge after four years of high end internet leads is the cost of lead that will continue to increase.  If your price points are high enough your rate of return is still exponential.  It's literally high stakes gambling because it's impossible to know which one will transact in your market or another market.  Last night a lead told me your market Del Mar or Scottsdale 

The biggest challenge is the search engines.

Most of it is free, need to learn the SEO tricks to get your name out there.

Nik,
If it worked, we would all do it. Those zip codes keep becoming available because all the agents that had that zip code before found it didn’t work.

One of the biggest challenges is conversion. I've heard that most online leads can take 6-9 months or more before taking action (buying or selling).

Spam, being sent to spam, it sucks.

Be consistent. Determine what your marketing budget is, then map out a strategy. For example, there could be a huge differenc in mailing 1200 post cards at one time compared to mailing 100 per month for 12 months, or mailing 300 every 3 months. A small newspaper ad that appears every month is probably better than 1 huge half page ad that onl appears once.

Good morning Nik. All of my blogging efforts keep a steady pace of mortgage inquiries going to my website and then eventually to me.

Nik De - well, it works well for those who can follow up quickly.

I work by referrals - so minimal budget for me for these type of leads.

You will get a lot of leads that even the buyer or seller aren't aware they need your help.

I don't use much on-line..Print ads in my area do very well

If you know who your avatar is you won't have problems.

Purchasing online lead generating is not going to be a good plan. As others have told you these leads are probably not serious and requested information from a variety of agents.  I think you have gotten a few good answers.

The leads aren't good and it has wasted my money. I don't do it.

Its expensive and the leads are seldom just yours.

Nik,

I think that everyone has done a great job answering this.  Buying leads is not the promised land the sales personnel make it out to be.  A

Are you referring to buying leads?  I do not do that. Blog with great content and people will find you. You invest your time and knowledge ... the challenge is in falsely believing you can actually buy a quality lead. Others are profiting off of that belief.

my online lead generation for listings is used to complement my direct mail marketing.....no challenges....it works well and has for many decades....

The challenge is the flakiness of the leads, but there is a huge potential.  Not sure what type of budget you're asking about, but if it involves buying leads and not generating your own, I suggest you not go down this road.

I typically find that the shotgun appraoch to online lead generation is a waste of money, so hone in on a target market.

Consistency and time on task. I'm trying to lead generate with minimal money spent.