3 Questions You MUST Get Answered about the Leads You Buy
Ever hear this phrase?
If you’re at a poker table and you don’t know who the patsy is, you’re it.
Or this one..?
Knowing is half the battle.
Or this one..?
I want the truth!
What’s the common theme?
You GOTTA know.
Especially if you’re buying leads, there are many many mistakes that lead buyers make… and details that you haven’t thought about, like measuring the ROI on your leads.. or which lead generation company you should partner with…. there are lots to think about.
So here are 3 CRUCIAL questions you MUST know the answer to before deciding to buy those leads.
In fact, I’ll give you a FAQ I managed to scour from a solar lead generation company (let’s call them XYZ) regarding their solar leads, and what the real deal behind the story is.
1) How does your lead pricing work?
One of the greatest benefits of working with XYZ is that we allow you to select the lead price you are willing to pay. Due to variations in demand, state rebates and many other factors, we found that our clients wanted to pay different prices for leads in different states. Our bid pricing system takes all of this into consideration and allows you to select whatever bid price you want within a pre-defined range. All our leads go through the same qualification process regardless of your bid price. Bid price only impacts the volume of leads delivered. The higher you bid, the more volume you will receive and vice-versa.
Bottom line: Higher the intent of the lead, higher the chance of sale.
So higher the bid, the better the quality of the lead…
So at least, that’s the THEORY.
On top of that, the more aggressive you bid per lead, the more volume you will receive?
Simple – The more room that the lead generation company you give them, the more aggressive they can get on purchasing advertising.
2) Does bid price affect lead quality?
No! All our leads go through the same qualification process regardless of your bid price. Bid price only impacts the volume of leads delivered.
That makes no sense whatsoever.
A lead that’s gone through some sort of incentivizatin or co-registration is NOT going to have the same probability of buying as someone who is LOOKING for it.
Think about it? Doesn’t it make sense?
Bottom line: the leads that came in from demand fulfillment as opposed to demand generation part of the buying funnel is going to produce higher ROI.
Why else do search engines make the BIG BUCKS?
If your lead generation company is telling you this.. run the hell away!
3) How many other clients are leads sent to?
Our feedback from homeowners indicates that most are looking for multiple bids. Therefore, residential solar leads are sent to 2-4 clients based on demand for those leads. Commercial solar leads are exclusive leads sent to only one client and are priced at a premium.
Unless the leads are seeing messages where they are specifically given options “hey, do you want multiple vendors to contact you”, I have rarely ever seen people engage in this activity.
More so, I’ve yet to meet ANY lead generation buyer that WANTS shared leads (because shared leads produces lower ROI).
Would you want YOUR potential customer to be approached by your competitor?
That’s not capitalism, that’s not socialism, that’s just poor business sense.
When in doubt, ALWAYS go for exclusive leads even if you have to pay a premium.
Your bank account will thank you for it.