Getting a good lead provider, oddly enough, has a lot more to do with you than them. There are a lot of them and most, assuming they are reputable, are following fairly consistent and proven methods of generating quality consumer inquiries.
However, the businesses that buy leads vary dramatically in their lead management and sales processes. So, if you are thinking about buying leads make sure you are a good fit first.
Here are some simple qualifying questions:
- Do I/we have the right culture?
- Do I/we have the right product(s)?
- Can we effectively target our “perfect” client with Internet lead generation?
- Do I/we have the right technology?
- Do I/we have enough capital to experience an effective return?
Culture is Critical
There is a reason I list culture first. It is the most important to success. If you do not have a hard charging, adrenaline charged, oozing with positivity culture it does not necessarily make you a bad sales group, but it will put you at a disadvantage in the Internet lead market. Wrong culture and attitude is the number one cause of failure with Internet leads, in my experience.
The Internet is fast. Internet consumers are impatient and fickle. They may fudge their form a bit. They will not wait for your call. They may not answer your call. They probably won’t make a quick decision. They definately will not call you back.
Consequently, to be a fit for this marketing channel you and you sales process must be: immediate, persistent, fast, persistent, inquisitive, persistent, persuasive, persistent…are you seeing a pattern?
This channel will not yield sales with casually and haphazardly making calls and follow-ups. It need a system and it need discipline.
Target Your Products
I need leads. That is number one question our lead analyst get every day. That sentiment, that objective, is headed for missed expectations. You should refine your request to focus on your end goal. That will bring the best results. Look at your products and your sales objectives and ask for that. Here are some examples:
- Taylor, Bean just came out with a hot new sub-prime product. I want local Chicago metro subprime leads
- FHA and increased conforming loan limits for Fannie and Freddie open new refinance opportunity. I want big loan amounts in CA
- I am a small hometown community bank in Flat Rock, MI. Give me high credit in the under served declining markets of Detroit-metro
Start with your products and goal, then find the lead match.
Can I Find My Customer Online
This is another common mistake. Evaluate if you can find your “perfect” client online. Can you find them in a (generally) high volume lead generation operation? Most lead generation companies make money by generating a lot of leads, for a broad range of products, geography, and demographics.
If you are looking for pre-foreclosure work-outs in Akron, OH you may be better watching the local newspaper public notices and starting a how to save your home blog, with a free listing in Google local. Most lead provides’ products will leave you and them frustrated trying to provide this client to you.
Technology Can Make You the Winner
Remember when I said this: immediate, persistent, fast, persistent, inquisitive, persistent, persuasive, persistent…are you seeing a pattern? That pattern, that sales process is critical to success. It is very hard, no impossible, to create that pattern, that success process without lead management technology. Outlook and spreadsheets break down very quickly very quickly even for a single loan officer.
The average lead requires 5 to 7 contacts and 10 to 14 days to get an application. Even one loan officer, modestly buying 2-3 leads per day is quickly juggling 100+ simultaneous sales processes and losing track of the brand new fresh lead that needs its first call within 3-5 min.
Capital Helps You Get to Success
Capital will not solve inappropriate culture, tough to capture clients, poor sales process, or email leads lost in spam blockers; but, it will give you an opportunity to feed the process long enough to see your first return. Most good lead providers require an initial deposit. Often around $2000. There is a reason for that. 15 free leads is not going to do anyone any good. All it does for the lead provider is give them a glimmer of hope a small percentage of you will stay. All it does for you is determine if you are lucky.
Closing rates in this channel can vary from 1-6%. That means a new lead buyer may need to work 100 leads to get their first success. Build your business plan first and see if this model make you money. Then see if you have the capital to start up the operation.
A Good Lead Provider is a Reflection of You
Certainly there are a lot of factors and important points of consideration in picking a good lead provider, but the right first step is a self-evaluation.
Current Internet Lead Buyers: Are there other things new buyer should consider in evaluating their organization for lead buying?
New Internet Lead Buyers: Are there other questions you have?
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Want more information about Kaleidico's lead management software or services visit www.kaleidico.com.
