Generate Exclusive Leads
Eliminate the uncertainty
2 MIN READ
WHY YOU SHOULD NOT BUY LEADS
1. Initial Cost Per Lead
According to HubSpot, the average (initial) cost per lead is between $11 to $100+ USD with a very low closing ratio.
2. Don't Be Fooled
However, there are many "unknown variables" associated with purchased leads, which ultimately increases the average (true) cost per lead such as the following:
A) Are leads from genuine people that actually inquired or are they "promotion leads?" (e.g. "Enter to win a free car!")
B) How many other competing businesses were shared (sold) the same leads?
C) Lead source? (organic search, email marketing, website, social media, affiliates, etc.)
(B) and (C) above are significant factors that lower the lead quality (e.g. if the lead was shared (sold) to at least 4 other local competing businesses, and/or if the leads were acquired by "affiliates," which means those affiliates likely shared (sold) the same leads that you’ve purchased to other lead generation companies as well).
Many 3rd party lead service providers may NOT disclose the above for obvious reasons. And even if they did, you could NEVER know the truth whether the lead is indeed exclusive, shared, and/or the source.
In addition, some lead generation providers will unethically "spin leads" (conceptually similar to article spinning), meaning that they will use automated programs to revise the content, lead source, then resend (charge you) for the duplicate lead(s) at a future date.
These are known problems associated within the leads buying industry.
3. True Cost Per Lead
Taking the above factors into consideration, that likely explains why the average (true) cost per lead is higher at $198 USD.
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