Investing in leads to get a decent returnMarch 30th, 2011 by Megan Collins
The following blog post was written by Justin Rees for Mortgage Strategy. To read the original, click here.
I have seen a few interesting threads recently on internet discussion forums about the advantages and disadvantages of buying leads compared with generating enquiries from your own website.
The internet is an incredibly powerful tool for companies and the recent rise of Linkedin, Facebook and Twitter have made it easier for small firms to engage with their customers and a wider audience.
But when it comes to generating a steady flow of qualified prospects, it is hard to compete with buying leads. For example, a quick search on Google for generic terms such as ’mortgage quotes’ or ’mortgage advice’ reveals the uphill task that small websites face.
The first couple of results pages for free and paid listings are made up almost entirely of banks, comparison websites and money portals that spend thousands on their websites.
To appear near the top of the search engines you need to spend a lot of money. That’s not to say small websites won’t generate any enquiries but in a market where criteria is strict and clients need a low LTV and clean credit history to get a mortgage, these types of consumers landing on your website will be few and far between.
Providers generating thousands of leads per week will have more of these consumers and most will allow buyers to filter by factors like LTV and credit grade, so you can cherry-pick such customers.
Of course you pay a premium, but in the end it is about return on investment. The more qualified the leads, the more likely you are to generate a decent return.