Has business been a little slow lately? Do you need to secure a more consistent flow of job opportunities? You may want to consider using a Pay Per Lead (PPL) company to help generate leads for your business. A lead is a potential client, and it is in any business owner’s best interest to secure as many leads as possible. For a fee, a PPL company will find leads for you and send them your way. Though it may seem like the ideal marketing strategy, it is not for everyone.
Evaluate this list of pros and cons to determine if it is worth it for you to invest in a PPL marketing campaign.
Pros of Buying Leads
You get leads quickly
The most promising part about buying leads is that you will start receiving them almost immediately after you sign up. Other methods of obtaining leads may simply take too long. Many PPL websites may yield results in hours or even minutes. This can be beneficial for you and your company if you are having a slow week and need to pick up some work.
Quick access to leads is also a great way for small and new businesses to secure clients. Lead generation websites can serve as a bridge to get you to a place where you are eventually getting clients organically, as you build your web presence and work experience.
You can easily track your return on investment
When you purchase leads through a PPL website, it is easy to calculate exactly what your return on investment is. All you have to do is multiply the total number of leads you’ve purchased by the cost of each one, then subtract that product from the total profit made from all of your successful leads. This will help you determine if buying leads from a particular company is beneficial or if it is actually causing you to lose money. There are not many other lead generating tools that can be calculated as easily.
You’d have multiple methods of lead delivery
Lead selling services often offer several methods of delivering leads such as email, text, or phone calls. You will also have the option to decide if you want “exclusive” leads, which means that the leads are given to you only and you’ll be the sole owner of them. This way, you won’t have to worry about competing with other contractors who have received the same leads. You may also opt for non-exclusive leads for a cheaper price if you have an established system for contacting and closing leads quicker than your competitors.
Cons of Buying Leads
The quality of leads is sacrificed
Though you are getting a steady flow of several leads, the leads you receive may not be of good value all the time. The truth is, leads that are paid for often have the worst completion rates out of any other marketing strategy. Lead companies make their money by offering a large quantity of leads to clients. Quality is often sacrificed for quantity, as the company attempts to push out as many leads as possible which may include several that aren’t qualified to turn into a job opportunity.
There’s the possibility of wasted time and money
Even if a lead doesn’t turn into a job, you are still responsible for paying for it. This means that if you work with a company that has a conversion rate of 1 out of 15 leads turning into jobs, you could not only be losing all of that money, but you will also waste time on conversations in an attempt to follow up on a lead that is going nowhere. If you have a very specific specialty, you should note that many PPL websites may have business categories that are very broad, which could in turn result in you receiving several leads for people wanting work that isn’t related to your skill set.
There’s competition with other contractors
Lead generation companies are often selling the same leads to you and 4 or 5 other business owners that specialize in the same work as you. This puts you in competition with other contractors, where it will essentially become a race to contact the potential client and close a lead first. Unless you have someone in an office whose sole purpose is to contact leads, it may be nearly impossible to be the first contractor to reach out. By the time you speak to your lead, they may already be annoyed as they’ve received 5 similar phone calls before you from other contractors.
You may get stuck in a contractual agreement
Most PPL company agreements will be contractual with an agreed upon set number of leads purchased and an established time frame. Very few companies offer a free trial or an opportunity to test out leads before fully committing. This means that if you end up with a company that has terrible conversion rates, you will be obligated to continue paying them and receiving little to no work in return.
If you decide to use PPL companies in your marketing plan, be sure that you also have other strategies set in place to obtain leads as well. You don’t want to run the risk of your PPL website shutting down and cutting off all access to potential clients. Search engine optimization (SEO) for your company website generally yields the highest quality leads. However, it can take months to get your website to the top of search engine results. PPL companies may be a substantial way to hold you over until you can start securing leads organically.