I am bombarded with lead offers daily…Join us and we’ll give you free leads (I can get free “leads” right out of the phone book)…We will get you a 10% response rate (ask them about their guarantees of a 10% response rate for a good laugh)…blah…blah…blah.
I don’t know how they get by calling them leads when for the most part they are not leads. These are not leads in the sense that the prospects have indicated a need or desire to talk to you, though they are sold as such.
Think about these numbers. A lead generation company will send out 1,000 mailers to the general public offering some sort of FREE information, report or trinket. So out of 1,000 mailers, they’ll get say 100 people saying they want something for free…mind you, NOT to talk to someone… but that they want this FREE thing that is being offered.
So the lead generation company spent:
Initial mailing: 29 cents for the mailer X 1,000 pieces = $290
Sending information: $1.25 mailed report X 100 people that requested it = $125
Total Cost = $415
Cost per “lead” = $4.15
Four dollars and 15 cents for these lead generation companies to generate a “lead.” A “lead” that did not want to talk to someone but merely wanted to receive something for FREE. A “lead” that when you call them up, get angry at you for calling or claim that they never asked for any information in the first place.
How much do they sell this crappy lead for? A lot more than $4.15 a piece and what is it worth? Butkus.
You would be far better off creating your own leads. As usual, if you want something done right, do it yourself. By using a 10:1 ratio technique you can generate REAL leads…leads that want to talk to you…leads that are interested in what you have to say…leads that might actually LEAD to a sale for God’s sake!
What is the cost? About the same as the lead generation company “leads” if you do it yourself. About $15 a Great Lead if you want someone else to generate them for you. Buying “leads” that aren’t really leads are never, I repeat, NEVER a bargain. However, creating your own leads will build a business that is profitable, ethical and enviable!