Debt Leads - A New Way To Buy Debt Leads
January 8th, 2010Debt lead conversions are extremely inflated when lead providers market their services. You will see advertisements stating closing ratios of 18% for an Internet lead and 25% for a live lead. Well that may happen one day or even one week, but overall conversions are not going to be that high. In reality they do not need to close at that rate to earn a nice ROI. If I am selling overpriced shared leads or expensive exclusive leads then of course I am going to hype up my closing ratios to sell my leads. In the end it is all about your conversions. Your price per lead does not matter if the closing ratios support what you are paying.
Reading too much into pricing could lead you away from a good debt lead provider. A debt lead provider priced too low could be a sign of a debt lead provider selling bad leads or it could be a debt lead provider that generates their leads in house. This makes their price per lead much lower. A debt lead provider with high priced leads is either a reseller or is generating debt leads via marketing channels such as Google PPC. Generating debt leads via Google PPC can run a company anywhere from $20 to $35 just to generate one quality lead.
A better way to look at lead cost or lead buying is to determine a target cost per sale. It varies in the debt settlement industry. You have companies that are happy with a $500 cost per sale and some that demand a $200 cost per sale. Establishing this number can help in determining a good lead source. Cost per sale or close is the total dollars spent on marketing to achieve a sale.
Most research shows that a shared Internet debt lead closes at about 3 to 4 percent. Sounds low but if you are paying $10 for the leads then you are going to hit a $250 to $300 cost per close. Exclusive Internet debt leads close around 10 percent. Depending on what you are paying for exclusive leads it may be more profitable to go with exclusive debt leads. Each of these numbers are just examples. There are going to be cases where a certain lead is closing better for one company compared to another.
Other factors that increase debt lead closing ratios are a good lead management system, a good return policy and a well trained sales team.
Before you start buying debt leads or move to a new debt lead provider try and establish a target cost per close. Share it with the debt lead provider and establish a plan to hit your target. If the closing ratios are not high enough then maybe your debt lead provider can lower the cost per lead to meet your target.
If you want a set cost per close then our Pay per Sale Program is the right solution for you.
For more information on these services visit IDebtLeads.com for Debt Leads.