When running a business many people find themselves in the same boat, not enough work, bills to pay, and not sure where to turn. Unfortunately often times people turn to companies like Home Advisor, Angie’s List, etc. to “Buy Leads” but what they don’t realize is those cheap leads are actually hurting their business. Check out some of the many reasons you should be generating your own leads via a proper marketing plan below:
#1 Close Rate – Often times leads that come from companies like Home Advisor or Angie’s List have a much lower close rate. Why? Because they have significantly more competition. You see, these companies obtain leads the same way we do but the difference is they sell the lead to sometimes as many as 10 different companies. What that means for you is way more competition, resulting in decreased close rates.
#2 Low Pay – In order to keep close rates high companies buying leads often resort to practically giving the work away. This is because many of the companies competing for these leads are just trying to be the cheapest guy so they get the work. This is far from ideal and certainly not a good way to build a business.
#3 Lead Quality – Since the lead is not generated specifically for your business the quality of the leads are worse. Again this means that when you buy the lead the person on the other end may not be looking to deal with your business or may want something slightly different than what you provide.
#4 Lead Age – Depending on the company sometimes its possible to get leads that are already old. This results in very poor performance because multiple people have already been in touch with that lead and they may have even decided on the business they are going with at that point.
#5 It’s Expensive – Due to the low close rate (often 25% or less depending on industry and competition), if your business is trying to sell work at decent prices, leads that are purchased can wind up being significantly more expensive because it takes so many of them to get a good lead.
#6 Advertising For Your Competitors – Buy leads is essentially taking your advertising dollars and advertising for your competitors! How so? Well, if you buy leads from a company like Home Advisor, they also sell that lead to many other companies and re-invest a portion of your purchase back into advertising to get more leads to sell you and your competitors.
Buying leads is essentially shooting yourself in the foot if you are trying to grow your own business.
Many businesses will actually try to buy leads and have a company like us build an advertising program for them. That’s fine for the first month or so but what happens is once we start stealing leads from companies like Home Advisor, if you keep buying leads from them, they can up their bids and compete with you (our ads), using your own money!
It is by far more effective from many different angles to generate your OWN leads using a marketing & advertising company like us. We can generate leads for you that are your leads alone, just like Home Advisor does. The difference is just that though, they’re only YOUR leads. No one else’s. That means you don’t have to have ridiculously low prices to sell the job, you can close more work, and you’re not hurting your business.
Contact us today to see what we have been able to do for other companies! Some of our clients are seeing returns of 30x+ on their advertising dollars. You definitely don’t get that through buying leads!