The FCC’s New 1-to-1 Consent Rule: What Real Estate Companies Need to Know
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The FCC’s New 1-to-1 Consent Rule: What Real Estate Companies Need to Know

by | Jan 7, 2025 | Blog | 0 comments

The world of telemarketing is changing, and if you’re running a real estate business, this shift demands your immediate attention. The Federal Communications Commission (FCC) has introduced a new regulation called the 1-to-1 Consent Rule, which will go into effect on January 27, 2025. This change isn’t just a tweak to existing policies—it’s a game-changer for how businesses, including real estate companies, can market to potential clients.

If your marketing strategy includes cold calling or automated messaging, you need to take this regulation seriously. Ignoring it could result in hefty fines, legal action, and irreparable damage to your reputation. But beyond compliance, this is also an opportunity to rethink your marketing approach for the future. Let’s break it all down.

What Is the FCC 1-to-1 Consent Rule?

The 1-to-1 Consent Rule is designed to protect consumers from unwanted marketing communications, particularly robocalls and automated texts. Under this new rule, businesses must obtain explicit and individual consent from a consumer for each company that intends to contact them using automated systems.

Gone are the days when a consumer could unknowingly give broad consent to multiple businesses through a third-party lead generator. Now, each business must secure separate, written permission for contact. This ensures that consumers maintain control over who has access to their personal information and how they’re marketed to.

When Does It Go Into Effect?

This rule takes effect on January 27, 2025, giving businesses just over a year to adapt their processes. However, waiting until the last minute to make changes is not a wise strategy. Compliance will require overhauling your current telemarketing practices, training your team, and implementing new systems to manage consent effectively.

Why This Matters for Real Estate Businesses

The real estate industry has long relied on telemarketing strategies like cold calling, skip tracing, and automated texting to generate leads. While these methods can be effective, they’ve also drawn scrutiny for being intrusive and, at times, non-compliant with consumer protection laws.

The FCC’s new rule specifically addresses the following issues:

• Automated Calls and Texts: If you’re using systems to send automated messages to potential sellers or buyers, you’ll need to have their explicit consent to do so.

• Lead Generation Loophole Closure: Buying leads from a third party that claims to have obtained “consent” will no longer cut it unless you can verify that the consumer agreed to be contacted by your specific business.

• Enforcement: Non-compliance can result in fines ranging from $500 to $1,500 per violation, not to mention potential lawsuits and damage to your reputation.

What Should Real Estate Companies Start Doing Now?

Staying compliant isn’t just about avoiding fines—it’s about demonstrating respect for consumer privacy and building trust. Here’s what your real estate business needs to do immediately:

1. Audit Your Current Telemarketing Practices

• Review how you’re currently obtaining and using consumer data.

• Identify any areas where consent may be vague or non-compliant with the new rule.

2. Stop Relying on Broad Consent

• If you’re purchasing leads or skip-traced data, ensure those contacts have provided explicit permission for your company to reach out to them. Broad or generic consent will no longer suffice.

3. Implement Consent Management Systems

• Use tools to collect and document explicit consent from leads. This should include:

• Who provided the consent.

• When and how consent was given.

• What the consent specifically applies to (e.g., automated calls, texts).

• Many Customer Relationship Management (CRM) systems, like LeadVault CRM, can help you manage and track this data effectively.

4. Train Your Team

• Your marketing and sales teams need to be fully educated on the new rules. This includes:

• Knowing how to communicate with leads in a compliant way.

• Avoiding illegal or borderline practices that could result in penalties.

5. Scrub Your Call Lists

• Regularly check your contact lists against the National Do Not Call Registry to ensure you’re not targeting individuals who have opted out of telemarketing.

What Does This Mean for the Future of Real Estate Marketing?

The 1-to-1 Consent Rule is part of a larger trend toward stricter privacy regulations. Consumers are demanding more control over their personal information, and regulatory bodies are responding. Here’s what this could mean for the future:

• Cold Calling Will Continue to Decline: While manual cold calls are still allowed, they’re becoming less effective and more scrutinized.

• Trust-Based Marketing Will Rise: Consumers are more likely to engage with businesses they trust and have willingly opted to hear from.

• Data-Driven Strategies Will Dominate: Businesses that focus on collecting and analyzing consented, high-quality leads will outperform those relying on outdated methods.

How to Market Your Real Estate Business Without Cold Calling

The good news is that you don’t need to rely on outdated or risky telemarketing tactics to grow your real estate business. Here are some alternatives:

1. Content Marketing

• Build trust and authority by creating valuable content that addresses your audience’s pain points. This could include blogs, videos, or social media posts on topics like selling distressed properties or navigating pre-foreclosure situations.

2. Social Media Advertising

• Platforms like Facebook and Instagram allow you to target specific demographics with personalized ads. Focus on crafting ads that speak directly to motivated sellers or buyers.

3. Email Campaigns

• Collect email addresses through opt-ins and nurture your leads with informative and helpful content. This keeps you top of mind without violating consent rules.

4. SEO and Local Marketing

• Optimize your website for local search terms like “cash home buyers in [your city].” This ensures that motivated sellers find you when they’re actively searching for help.

5. Networking and Referrals

• Build relationships with other professionals in your market, such as attorneys or contractors, who can refer distressed sellers to you.

Embracing the Future of Real Estate Marketing

The FCC’s 1-to-1 Consent Rule is not something to take lightly. It signals a broader shift toward consumer-centric marketing, where businesses must earn the trust and consent of their audience. For real estate companies, this is both a challenge and an opportunity.

At REI Toolbox, we’re here to help you navigate this new landscape. From building a compliant marketing strategy to implementing systems like LeadVault CRM, we can guide you every step of the way. The time to act is now—don’t wait until January 2025 to make changes.

Let’s turn this challenge into an opportunity to build a better, more sustainable way of marketing your real estate business. Reach out today to learn how we can help you thrive in this new era.

Contact Us Today

For more tips and strategies, visit REI Toolbox or connect with me directly on Instagram at @shawntiberio. Let’s build a marketing strategy that works for you—legally and effectively.

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