Why can't you pay for leads after they have converted?


The above question is something that we get asked all of the time.

At LeadPoint – and most lead providers – a lead buyer pays for a lead when they receive it irrespective of whether the lead converts into business or not. 

One of the main reasons to work in this way is quite simply that all lead buyers are different. Give two lead buyers the same twenty leads and more often than not they will each have very different experiences in terms of conversion rates and their return on investment.

A lead provider has no control over the outcome of the lead once the lead buyer has received it. Hopefully the majority of lead buyers will follow best practice recommendations and follow up with every lead in minutes but this doesn’t always happen.

All a lead provider can do is to try to ensure that the quality of their leads is as good as it could possibly be and listen to the feedback of its customers to constantly try to improve lead performance.

Often when lead buyers ask this question, what they really mean is “How can I trust that your leads are any good?” They make an incorrect assumption that if a lead provider supplies good leads then naturally they should agree to be paid on conversion.

Unfortunately, this ignores a few crucial points. A lead provider like any other business will live and die by the amount of repeat business that they get. For a lead generation company such as LeadPoint, this means that lead buyers will continue to deposit more and more money every week.

This will only happen if the leads are of a good quality and the lead buyer is making money from buying these leads. It is very simple to work out after a few weeks whether your lead generation activity is yielding a healthy return on investment. And in fact, it is easier for a buyer to work out what their return on investment is when they pay for leads as they receive them.

The other misconception is that leads cost nothing to generate. This couldn’t be further from the truth. Just to get a consumer to click on an advert on Google for mortgages can cost more than £10 and there is no guarantee they will leave their information!

The marketing experts that spend the money to generate these leads have to spend their money up front and they need to be paid. As mortgage leads often take weeks or months to convert, it is unrealistic and unfair to expect them to be paid after conversion.

In the end, if a reputable lead provider sells good quality leads and has a fair returns policy then paying for a lead on receipt of that lead should not be a problem.

For a broker embarking on lead generation for the first time, the most important thing to do is make sure the company you use has a proven track record of providing good quality leads.

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