When you purchase leads, do not put a huge emphasis on the cost of buying the lead look at the average number of leads it takes to turn a lead into a sale. Decide how much you can afford to give up in “marketing costs” for each sale you make. Then work backwards to determine how many leads you will need for a sale. If the number of leads times the cost per lead is greater than your marketing cost allowance, the lead is too expensive for you.
2 examples of what I mean: lead conversion squared review
Acceptable marketing cost per lead $150
Source 1: High Quality targeted leads. Customer is expecting your call. $50 per lead conversion rate average 33% Cost per sale $150 Time spent talking to potential customers 2-3 hours.
Source 2: Low Quality Bulk buy leads, customer details are sold multiple times, they are not expecting your call and know nothing about your product. $5 per lead Conversion rate 5% Cost per Sale $100 Time spent talking to potential customers 10 hours (a lot of this time working out if a number is invalid or not)
Which is the better value lead? I am not sure about you, but I value several hours of my time as worth more than $50. For me Lead Source 1 is by far the better value option!
Choose your sources carefully. Ideally establish a relationship with the supplier where you can feedback information about the quality of the leads so that they can make adjustments to improve quality where possible. Make sure you know how they are capturing the leads and ensure you are comfortable with their approach. When you talk to the potential customer, acknowledge how you received their information and then complete the CVP (Customer Value Proposition) that the lead generator offered in exchange for their details.
I came across this great video by a Mortgage broker that talks about the importance of determining your Cost Per Acquisition when buying leads