Are Leads Worth Investing In?

You pay a fee and have pending leads. But is buying a list of potential customers the right thing for your company? The answer is usually no, but in some cases there may be no other reasonable options. Buying leads can be expensive and offer a dubious return on investment, and the worst problem is the lack of exclusivity. A service that sells potential customers cannot generate a profit if you only sell the potential customer to a company.

Leaving aside the enormous risk that the data you buy is of poor quality or is not verified, consider the energy you could spend trying to convert these fake leads over the investment you make in the list itself. Both have enormous potential when applied to a more legitimate means of lead generation. A common reason companies don't want to buy exclusive leads is because they're often associated with a higher price. However, the common saying “you get what you pay for” rings true when buying shared leads versus exclusive leads.

Since exclusive leads are more likely to convert to sales, it might be a smarter long-term financial decision to buy exclusive leads, even if shared leads have an initial selling price. The first (and most important) step to buying a list of potential customers is to understand who you'd like to target. You can save time by entering your potential customer lists into the system and calling with the caller automatically. In the insurance industry, there are a lot of buying decisions that your customers and potential customers make on a daily basis. By buying pre-qualified leads, you can increase the value and ROI of your direct marketing efforts and attract the highest quality leads to your business.

An established lead provider will include a tool to evaluate the service if you buy potential customers from them. Prospect dashboards provide an overview of your overall success, including the number of calls you make, disputed leads, closed leads, and closed leads. With that said, some of the top real estate agents are still buying leads as a way to get leads. These leads are attractive in terms of costs, especially if you have a limited budget, but they're not as likely to convert as a lead in real time. This will help you better understand where to invest your time and budget, producing the best organic lead generation results.

However, exclusive leads tend to be of an overwhelmingly higher quality than shared leads and often result in higher sales. Buying leads means that you start from a position that is more advanced in the buying process than in cold calls, which means more conversions. You'll be able to connect with new potential customers more effectively if you have a well-defined outreach strategy. If you buy a list of potential customers comprised of generic contact information, there's no guarantee that any of the contacts are interested in your offer. Just because you don't buy leads doesn't mean you can't take active steps to build your leads.

Investing your time and money in superior inbound lead generation strategies will produce much better results and help your company to grow as you continue to improve your marketing strategies. While the TCPA significantly slowed insurance companies' outreach efforts, this ruling means agents can still take advantage of automatic scorers to get the best results with former potential clients.

Randy Vanwie
Randy Vanwie

Avid music maven. Professional beer geek. Evil coffee scholar. Professional bacon fan. Hipster-friendly music geek.

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