I'm reading this from three sides of the fence here and it's very interesting.
No.1 As a representative of leadbay
No.2 As a Marketing Professional
No.3 As a purchaser of leads for unrelated services
No.1 Our
uk sales leads are exclusive sale only, 1 company. Our offline leads, the more robust, are generated via surveys conducted in the street. Questions are tailored to the company who has placed the order so we qualify them how they want. There is a returns policy in place which we honour. All of this makes for a great lead buying experience.
However, not every lead is a sale. A few companies we have worked with have unrealistic expectations of what leads actually are and what the working of leads involves.
Also, on the note of free trials, everyone asks for them but thats not something we offer. We know the strength of our leads, we stand by that, either the company is interested to make money via leads or not. We can arrange for a reduced price as a tester but if you give away leads for free, as we have when beginning, as people have not paid for them they dont care about them, they dont get worked properly and then people complain! Quite ridiculous. (Called one customer back a week later and they were still in the draw!)
Which brings me to
No.2 The process of buying leads is a marketing activity, or at least should be administrated by someone of similar mind who is fanatical about one thing. Return on Investment. They should also be someone who is able to correctly calculate this, taking into account ALL FACTORS.
Ensures the sales process in testing the leads is run properly and results accurately guaged. Margins on the leads may be tight but the business management needs to decide on many things following a trial. Could they be worked better? Are the Margins enough? Can capacity increase? And so on. Only then will it be known if buying leads is profitable.
No.3
Have used approved index for unrelated services and agree with the comments made.
Poor service, unfair contracts, often poor lead quality, there process of qualifying is where it falls down I think. Not stringent enough on what really is a "Qualified lead". And the cost is partiuarly high. As always though, refer to point 2, it may prove profitable even given the competition. Would still consider using them, if the ROI works, but they aren't preffered.
Lead buying is misunderstood pratice I feel and it's interesting to see it from these different angles.