Just a little rant:

I have mentioned this and asked this question before, however I think it is worth asking again. What is the correct price YOU should pay for lead?

This may be different for each and every one of you and mostly likely is. Do you know what your target price is? I know many would say that your target price is a low as you can get it and I would respond by telling you good luck with your business and recommend that you keep you resume on monster.com. I have heard some say a lead is a lead and in some cases you could make that argument. I however, based on my experience as a buyer and a seller don’t completely buy into that thought and therefore believe there are different values for different leads. I think ultimately that is based on your conversion. If your conversions are low, you typically are looking for a cheap lead, possibly remnant volume. If you are closing leads you are more willing to pay more for them. This, at face value is very simple, but so many really have no idea where they stand and how much is an acceptable lead price for their company.

Its my opinion that you get what you paid for and it wouldn’t be fair to ignore the fact you can easily over pay for leads too. What do you get with inexpensive leads? Most lead sources distribute their leads based on major factor and that is price. Highest bidders will be ordered first in line to receive a lead. Lowest bidders will typically receive their leads last and sometimes later in the day when all other lead orders have been filled. Remember that most all companies deliver leads in real time, so it is not that their is a competitive advantage for people who pay more, just that they are more likely to have their order filled before those with a minimal bid.

Along with that, sources that sell leads at a significant discount are any many cases, but not all, also receiving leads from other providers with little to no knowledge of how the lead was generated. If buying leads isn’t a gamble already, buying leads from a source that is willing to sell you them at a significant discount would similar to doubling down on a bad hand of cards in Vegas.

Take time today, if you don’t know already, to find out what your target lead price is. This can be done by taking a months worth of data and backing out the number from your average ROI and conversion rates. Now you have a target and a range to work in and should not over pay for leads again and at the same time not risk quality for price.

Take it or leave, but cheap does not always translate into ROI.

Just a thought.

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