I paid four bird dogs for 14 months and only kept the one who never sent an address
I do passive positions mostly and I underwrite carefully, so when I started funding a local operator's acquisitions I ended up paying for his lead flow too. Over 14 months that was four bird dogs on a flat $1,000 per closed deal, with expenses reimbursed for driving.
The numbers on the four of them, because they surprised me. Dog A sent 212 leads in the period, 118 of them from a paid list she resold to us essentially unchanged, 1 closing. Dog B sent 34, 0 closings, quit in month five. Dog C sent 61, 2 closings, both marginal, we made about $9,000 combined after everything. Dog D sent 9 leads in 14 months. Four of them closed. One of those was our best deal of the year.
Dog D's leads were never addresses. They were sentences. "Owner of the fourplex on the east side of the industrial strip is going through a divorce, both parties want it gone, the wife's brother is a contractor and has been telling her it needs $60,000 of work it doesn't need." That's the whole lead. He got that because he coaches youth baseball with the guy. He isn't systematic and he can't be scaled and he is worth more than the other three combined.
What I got wrong: I paid all four on the same flat fee, which meant I was paying identical money for a resold list and for a conversation nobody else on earth had access to. Dog A was profitable for her at $1,000 per close on 212 sends because her marginal cost per lead was near zero. Dog D was underpaid at any volume.
What I'd do differently: tier the fee by what's actually in the lead. An address off a list gets a small flat number if it closes. A named owner with a stated reason for selling gets a real percentage. And cap how many leads one person can have open with us, because Dog A's 212 buried the operator in triage.