Top 10 Mistakes Lead Buyers Make – Part 1
Let’s face it.
Certain businesses will ALWAYS need leads.
Businesses that don’t necessarily have to be in high traffic retail locations… or businesses that sell really expensive items (like insurance, solar panels, mortgages, 401k retirement plans, college degrees, telecom services, etc.).
For those kinds of businesses, leads are the life-blood of the sales cycle.
Without those leads, sales stop. And when sales stop, revenue dries up.
When the revenue dries up, someone is going to have a really shitty day.
But fear not, lead generation companies like Solar One Media is here to help.
As seasoned lead generators, I get all kinds of odd (and some borderline idiotic) lead buyers walking through our door.
Here are some:
1) Hiring the ANY “joe schmoe” lead generation company
I’m sure you’ve heard the used car salesman pitch: “Take my word for it. The bang for the buck.”
Sure, go ahead and buy it from him. Next thing you know, your car breaks down as soon as you drive it off the lot. If you ask him to fix the situation, his uncle Vinny will come and break your knees with a bat.
It’s no different, if not worse, in the lead generation.
Remember that you’re getting just information… name, number, email, what they’re interested in, etc.
How do you know that the lead generation company you’ve hired is 1) credible and 2) understands what you need?
We, at Solar One Media, do not even launch any ad campaigns until we can understand what your business is all about, including your USP (unique selling proposition), what your customer needs are, what motivates them, and how you can best angle your product or service in the marketplace.
2) Caring only about “Price”
Bottom line: You get what you pay for.
At a conference, when I was approached by a insurance lead buyer telling me that he thinks lead generation is a scam because he bought 150 leads and NONE of them even picked up his phone call.
Me: “how much did you pay for them?”
Him: “A lot”
Me: “What is ‘a lot’?”
Him: About $3/lead.
Yes, ladies and gentleman, there is a sucker born every minute. Even sharp insurance sales people.
Do the math.
On average, insurance clicks on search engines are $25+ per CLICK. Assuming 1 in 10 sign up, the cost to the lead generation company is at least $200/LEAD.
How on earth do you think are they sustaining profitability by charging only $3/lead?
And do the math.. if your product costs $5k to $100k, do you REALLY think your lead is going to cost you less than a cup of coffee at Starbucks?
Use common sense.
3) Buying non-exclusive leads
Going back to example #2…
If some shady company offers you leads at $3/lead when it costs them $200, how do you think they are possibly making money on that lead?
Sell the same lead about 100 times … that’s how.
(Or worse, they just went through the phone books and got some random names and numbers.)
In another words, there are literally 100 people calling & competing for the lead you’ve bought.
Of course, every sales that approaches you with promise of “exclusive lead” could be BS-ing you all the way to the bank.
Ethical and trusted lead generation company like Solar One Media sell ONLY exclusive leads. (i.e. you are the SOLE RECIPIENT of that lead.) In fact, we take on only 1 CUSTOMER per industry so that we don’t have this issue.
Of course, it cost more.. but your closing rate will speak for itself.
4) Buying more leads than your sales team can handle
Ever watch that episode of “I Love Lucy” where Lucy is overwhelmed by the number of chocolates that she has to process coming down the conveyor belt?
What does she do? She starts missing them.
No different than with buying leads.
If you buy more leads than what your sales team/department can handle, you will lose them.
Why? Simple: your leads are getting “cold”.
You want to call/contact your lead within 24 hours… but ideally, within 1-2 hrs… of initial contact.
This is the internet era where people want it.. and people want it NOW.
Another thing to note: Your lead may come during off hours (after 5 PM or during weekend). If so, do you have the capacity to handle that?
5) Working with a lead generation company is like long term dating, not one night stand.
Does your business change?
If the answer is no, you must be rich. But if you are, why are you reading this?
If the answer is yes, then you know your lead requirements will change over time.
Guess what, that means your lead generation company has to understand how your business is changing and adapt to your needs.
With the rise of Linkedin, Twitter, Facebook, etc etc… more and more so-called “lead generators” are resorting to spam as a way to get your to buy leads from them.
No offense to those guys outside of US trying to sell leads to businesses in US.. but seriously… why?
Those guys are like single men looking for one night stands. They don’t know you.. nor do they care about you or your business objectives.. .. nor your ROI objectives.. nor about really understand how your business is changing over time.
All they care? The “bang”.
Like all overnight drunken rendezvous w/some random girl/guy at the bar, you’re left with nothing but
- a fat hangover
- empty wallet
- sore butt (that toy seemed like a good idea at the time, didn’t it?)
- .. and possibly some funky STD that makes you burn when you pee
Then you find out that it’s actually your far removed cousin and now you have to wear the cone of shame for the REST of your life.
Not that I really know anything about that.. but you get my point.
Point is.. your lead generation company needs to care because ain’t no business gonna get done if your leads change as your business objectives change.