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Is Buying leads a good idea?

As someone who is considering your marketing options, you have likely wondered—which is better, buy leads online or make your own ads? Buying leads is certainly an easier process, but does it really get you the results you want? Maybe not. Nik with RealTop Marketing helps unpack these concepts and compare the two options.

What Does It Mean to Buy Leads?

While you may have heard the term “buying leads” before, you might not have a real understanding of what it means. When you buy leads, you are purchasing a list of contact information and potentially other information (such as annual income, number of children, etc.).

If you target correctly, the list can consist of information for your ideal customer. However, there is never any guarantee that the list includes people that have any interest in your product or service.

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The Downsides of Buying Leads

Although buying leads may seem easier, it may not be. It also is not nearly as effective compared to creating your own ad campaigns.

1. No association with your company

When you work off a “leads list,” the person you call is not expecting your call. They may be completely unfamiliar with your business and the services or products that you offer. While they may have some expectation that someone will contact them, they may not be excited to hear from you. As a result, your closing percentage is much lower compared to using your own advertising campaign.

2. More expensive per lead

Purchased leads are also generally more expensive per lead. Many leads are generated by buying ad space on Google or another search engine—the same way you would be able to advertise your company. As a result, there is a mark-up on the lead because the lead generation company has to first spend some money gathering the leads. In some cases, that mark-up is upwards of three to five times the company’s cost to gather the lead.

3. Leads lists are not exclusive

Most leads are not exclusive. Although the lead company may say that you are the only company that gets the lead, that often is not the case. In those situations, you may end up with several competitors calling the same people.

4. Reduced Quality of Leads

One of the biggest downsides of buying leads is that you’re not able to control the quality of them. You might be sending money to a lead generation companies that isn’t reputable or they might have fake information on their website that you could never find out. In addition, your leads might not convert into sales as well. If your target audience isn’t interested in what you have, then they probably won’t buy anything from you and it will be a waste of time and money.

5. Low conversion rate

A major downside of buying leads is that they have a low conversion rate. This means you will have to spend more money on lead generation than you would with traditional methods such as inbound marketing. On top of this, it can take time to build trust and credibility. For example, if you are buying leads from a pushy salesperson who doesn’t have much of an online presence, your customer may not believe you at first and be hesitant to work with you.

6. Email efforts affected

A big disadvantage of buying leads is that your email marketing efforts will be affected. Imagine receiving an email from an unknown person who you didn’t offer your personal information. It’s more likely your email will be marked as spam as opposed to someone who agreed on providing his email address to you in exchange of valuable information. If you wish to generate leads interested in your emails, products, or services, then you should think twice before buying leads online.

Is it worth it to pay for leads?

The short answer is it depends. Even though buying leads may save you some time, it’s not 100% sure you are generating quality leads for your business. These leads have a low conversion rate as opposed to the leads you would get by running your own marketing efforts, such as Google Ads, social media posts, content marketing, and others. Most of the time, they might not even answer you when trying to reach out to them. If you want to ensure that you are getting high-quality leads, you should invest in making your own ads.

Running Your Own Marketing

While buying leads may not seem attractive, creating your own marketing strategy may be even less appealing in some cases. Generating your own leads through by making your own ads, landing pages, and more can be very intimidating, especially when you have a business to run.

There is a high barrier of entry because it takes some in-depth knowledge of how online marketing works to create an effective campaign. However, once you get over this barrier, the benefits are significant.

  • Your marketing is branded to you. 

By running your own marketing, you will be able to create a brand that stands out on its own. Your potential clients associate your marketing campaign with your products or services. So, anytime your customers have a need they want to satisfy related to a product or service you offer, they will know you are a reliable solution to their needs. With a unique voice, attractive design, and engaging content, you can draw potential clients in. People want to work with people they trust and businesses they believe in. The better you market yourself, the more people will listen because they know they can trust what you say.

  • Your closing percentage is much higher. 

There is consistency between the search that a potential client is doing and your business name. That consistency makes clients more comfortable, which increases sales while generating high quality leads.

  • It provides equity to your business. 

Creating a well-known brand creates huge value for a business. That goodwill takes time to develop, but it is often worth it. A great brand adds value to your company that you can use to increase the sales price when you are ready to move on.

  • Sets Yourself Apart From Competition

One of the main benefits of running your own ads is being able to provide a personal touch. It’s your job to make the customer feel at ease and know that you truly care about their needs. There are times when your competitors might not have time to take the time and effort it takes to treat customers like they deserve. Generating leads by running your own ads allows you to establish your business as an authority in your industry or niche.

Getting Help with Marketing with Real Top Marketing

When you need help creating your own digital marketing campaigns, Real Top Marketing is a great asset. We can help you create your brand in a way that is going to add more than just dollars in the door—it helps you develop a name for your company that you can use for years to come. Learn more by contacting us or get a free marketing plan today!



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