- November 15, 2015
- Posted by: nikiamedia
- Category: Lead Buying, Lead Generation
Generating high-quality leads
Quick Tips for Lead Buyers
- Know your CPA (cost per acquisition) goal. In other words, the cost it takes for your business to profitably acquire a customer.
- Know which filters you require when generating high-quality leads. At a minimum, ask yourself these questions prior to reaching our to lead vendors:
- Are the leads that close at the highest rates people that make a certain income?
- Are your best customers in a particular age range?
- Does your leads that close at the highest rates in certain states?
- Do you only do business in a particular geographical location?
- What are the days and hours do you prefer to receive leads?
- Are you buying exclusive, semi-exclusive, shared leads?
- Do you prefer to buy leads in real-time or can you accept aged leads?
- What price do you buy leads at (keep your CPA in mind)?
- Do you pay different prices for leads based on certain criteria?
- Do you have a “blacklist” of vendors or affiliates that you refused to work with and pay for?
- Know how you want your leads delivered to you. Do you want leads delivered in real-time via email or directly to your CRM? Or is there another method you would like your leads delivered?
- Know which methods of distribution or sources have provided results when generating high-quality leads in the past. Do you prefer to buy high-quality leads generated by search marketing or are you willing to buy high-quality leads generated through various sources as long as you meet your CPA goal? If you do not know this answer, you will just have to test it and see what happens.
- Start with a small test, especially if a prepayment is required when generating high-quality leads. Don’t fall into the trap of paying hundreds or thousands of dollars testing with lead vendors you’ve never worked with without knowing their quality.
- Know how much can you afford to prepay for high-quality leads, if necessary. Most high-quality lead vendors will require prepayment for new buyers. Often times after the relationship is established with a significant history of on-time payments, credit terms may be extended to the buyer. Find out upfront if you can afford to pay the required amount to buy leads from a vendor.
Alsofind out how you can establish credit. You don’t want to waste your time, nor the lead company’s time.
- If a prepay is required, find out the lead vendor’s cancellation policy, refund policy, and policy for unused funds. Don’t get stuck chasing an unethical vendor down for a refund because they didn’t fulfill their promise to deliver high-quality leads. Make sure the terms and timeframe for refunds and unused funds are clearly outlined in the agreement.
- Make sure the lead return or lead refund policy is clear. Protect yourself from loss and make sure you communicate clearly which leads you will not pay for. Understand that vendors may also have limitations on returns in their policy to protect them from loss as well, especially if they are known for generating high-quality leads. For example, vendors and affiliates may have a maximum scrub or return rate in place to protect the investment they usually make to generate leads for your business. For example, vendors that are generating high-quality leads via paid search since they have to pay for the click before it even if it does not result in a lead being generated.
- Find out how much time you will have to shut off bad lead sources. Ask your vendor for access to their “On/Off” switch. Many vendors that do not offer self-serving platforms may require 24 hours notice or more to pause or terminate campaigns. Make sure this is also clearly understood and outlined in the agreement.
- Get access to your vendors’ real-time reporting system. It is my recommendation that buyers should get access to real-time reporting and check the cost on a daily basis. Even if you are an amateur, you do not want to appear like one by realizing you ran up a hefty lead bill because you failed to stay on top of the performance. If you choose to work with a vendor that does not have real-time reporting capabilities, request the reports to be emailed to you on a daily basis.
- Set lead caps prior to launching. It is not in your business interest to get stuck with a huge bill for an unexpected amount of leads delivered, especially if the leads did not back out or have profitable results. Most lead buyers start with a daily lead cap for the initial test and scale upwards when the lead quality is established.
- Have an agreement in place. Be sure to have terms and conditions in place, as well as in insertion order that details that pricing, filters, payment policy, return policy, etc. If you are going to sign the vendor’s paperwork, have an attorney review it and go back to the vendor with changes, if necessary. If you can not afford an attorney, you are at risk of losing money if you do not fully understand some of the legal jargon.
- Don’t assume about your lead source until you thoroughly test. It is never okay to assume a lead source will work for you the way it may work for another buyer. It is also never okay to assume a lead source is bad just because you quite haven’t had success, especially if you don’t have a solid marketing plan and follow-up strategy. The key is having a plan and a marketing strategy in place to work your leads. How can you say leads are bad or assume you will have the same success as someone else if you don’t have a good plan?
Hopefully, you will find these tips for buying high-quality leads helpful. Please feel free to contact us for personalized tips for your business model.
© 2014 Nikia Lopez