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4 Reasons Why You Shouldn't Buy Leads

I mention in my book that referrals are always a great way to grow your business, and I also prefer networking events because I can actually meet someone and let them know I'm credible. But one of the most tragic things I've seen over the years is people buying leads and then complaining about how horrible they were. Let's take a look at why buying leads is a bad move.

Image may contain: 1 person, smiling, meme, text that says 'HERE'S WHAT I THINK OF THE LEADS YOU SOLD ME'

  1. It's almost a cold call. It's tough to explain to someone who you are, how you got their name and number, and make an appointment. The person you are contacting may have simply clicked a box indicating interest in a product, not expecting a phone call from a salesperson. I have had too many frustrated people on the other end of a call on these occasions. 
  2. You really don't know where the leads are coming from. Are they verified? Are they leads or just names from phone book? (Yes, this happens). I worked in an office years ago where sales people were complaining that some of the leads were actually dead. Personally, I like my clients living. 
  3. Leads cost money. I get it. You don't want to prospect or network and think that buying leads is a short cut to success. Unfortunately, the ROI on your leads can be minimal. The money you spend on leads could be put to more efficient ways to prospect. Take a good hard look at your industry and see if any of your more successful peers are buying leads. Odds are they aren't.
  4. You may be limited as to how you can use the leads you buy. I know of one insurance agency that would sell leads to the agents, then tell the agents they couldn't sell other insurance products. In my view, if you buy leads, they are YOURS and you should be able to do what you want with them. 
Once again, rather than buying leads, invest your time and money into networking or other marketing plans.

Chris is available to speak to your organization. For more information, click here.


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