Ever so often I will receive an email or will see questions in the forum specifically asking about lead providers. They typically go like this; “Hey, has anyone tried these leads…they are offering…what do you think?” Many of the buyers in the forum have tested a good portion of the lead providers in the market, but there are too many out there to have tried them all, unless you buy for Quicken, so typically someone can give an answer, but for those providers that have not been tested, here are few things I suggest you look for when researching a company.
- How does the companies website look? If a website looks like it was built in 1998 do you really think they have the capability of generating traffic on the Internet or have the savvy to create an Internet Marketing Campaign? Probably not.
- What type of credibility does the management team have? Have they been in the industry long? Do they have an advertising background? Take a look at Adchemy’s team. This is far from normal, but you get my point.
- How many products or services do they offer? I always become hesitant if a company sells every product under the sun and then few more. If a company sells trigger data, Internet leads, hot transfers, auto dialer’s, books, etc I think you should be concerned. Its all about lowering your risk and what I mean by that is it is too easy for a company to mix the data in your orders. Also, if a company is so diversified they are probably not generating the leads on their own and if they are they probably are not very good. Many of the top tier and best converting lead providers specialize in one product.
- Do they want you to pay via Paypal? I am serious, I have seen lead providers ask to be paid via PayPal. If they aren’t professional enough to have proper merchant account set up, please move on to the next provider.
- Are they on Rip Off Report or do they have active complaints on the BBB? Listen, I believe a good company can have a complaint or two, but it should at least raise a red flag and you can then use your better your judgement from that point on.
- Are they offering Free Leads? In most circumstances I have never heard or experienced anything good come from a company who offered free leads. Why would a reputable company ever offer free leads? This makes no sense.
- Does the company resell your leads 30, 60, or 90 days out? Believe it or not there are companies out there that will resell your leads after a specific time period has passed. Which I believe is against DNC rules. Correct me if I am wrong, but I believe after 90 days of the initial inquiry and no business relationship has been created, the lead can not be called.
- Do they have a affiliate sign up page on their website? If so, are they willing to tell you their source or who their top affiliates or publishers are? I have no problem with partnering with other publishers (websites) but I want to know about it. If they have no idea or can not tell you, then I would suggest you move on to the next provider. LMB will tell you that they don’t use affiliates, but why would they have a affiliate sign up page? LMB buys from affiliates and then sells their leads 5 times, double whammy.
Generally it is fairly hard to decipher a good lead provider from a bad one without having to test them. Only through experience does one ever come close to perfecting the process and even then the Pro’s get taken once in a while. I think if you take notice to these few points you will minimize your risk of wasting money or being ripped off. This process are far from full proof, but should help out many of you newbies. If you have any other questions, sign up for the forum and ask away.
Also, lead providers are now going to be allowed into the forum, however they will not be able to participate or view the “Good, the bad and the Ugly” forum. This forum will remain closed off to everyone who cannot verify that they work for a mortgage bank or broker. The opinions, suggestions and insight of that specific forum are only for the view of lead buyers, period.
One more thing…if you have these types of questions or are looking for answers or tips on improving your conversions, I highly recommend that you attend the Leads2007 event in Tampa FL. This will give you a chance to converse with lead buyers and sellers of all experiences. I can guarantee that you will leave the event with something that will improve your business.
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Great post Critic! Once again you take the time to splain to the masses best practices.
Great information! I’ve received emails on buying leads ever since starting my own company several years ago, but I’ve never taken them up, and I’ve never thought to look at Ripoff Report(though I’ve used it for reporting bad customer service). Glad I never bought any from these guys…just as likely I’d have been taken. Thanks!
“Affiliates,” can be a dangerous word. It is a word that has become the third rail in lead buying but sophisticated buyers should know it is not always the dirty word it is made out to be. There are some good affiliates that use SEO, search engine optimization, to generate their leads. The problem is these are the vast minority of affiliates. Most use very questionable means, specifically “Co-registration,” or “Incentivized,” marketing tactics. An example of “co-registration” would be a consumer filling out an application for a credit card and there are several additional offers where you need to “de-select,” the check box otherwise you are opting in for things you probably don’t even want. And everyone knows what the incentivized crap is, “Fill out this form for a free iPod!” Make sure you specifically ask if the company allows any of these lead types in their channel. If they do, or if they say they don’t know, turn and run.
Amber,
Please allow me to explain that the RipOff Reports (and the BBB for that matter) are scams. The guy that started the ripoff reports is being searched for to be brought in on extortion charges. The way he works is that you complain about a company and he asks you to contiribute to a bogus campaign to put them out of business and tehn he sends a letter to company offering to remove all bad reports if they pay his fee. Check this link out and you will see http://www.ezripofflawsuit.com/. And I believe I should add I personally know people that have been through this with him.