Fitness and wellness experts recommend people put their exercise commitment to a test before purchasing an expensive piece of equipment or joining a costly gym. If agency owners follow this line of reasoning with leads, they will more than likely see the return on investment from purchasing leads they expect.

There’s no shortage of resources for leads if you want to purchase them. Companies are lined up to sell them to agents. You can buy a mass amount of leads to own, store in your database and contact as you wish. You can also rent leads from a provider that contacts them on your behalf via email or direct mail, or get one-off leads from various sources that capture quote requests from consumers.

Purchasing leads offers a quick and easy way to obtain a high volume of contacts. But at an average cost per contact of 50 cents to a dollar, it’s not inexpensive and there are no guarantees for satisfactory results. First, because leads are available to other agents, they are “shared” leads that come with greater competition. Several agents are clamoring for these contacts to become their customers so getting their attention may be more difficult. Second, without a strategy to develop leads, they are not likely to be converted to customers. Consistent, planned and timely follow-up over a period of time is critical. What’s more, you will need to track the results of each lead so you can gauge the effectiveness of both the source and marketing tactics utilized to nurture and develop that lead.

Before investing a large sum of money for leads, conduct a trial-run by crafting and executing a strategy with a smaller number of existing leads in your database. Work through the leads using whatever approach you would use if you purchased them. If you utilize a CRM system or some other marketing automation, make sure you utilize it.

This trial-run approach can help reveal whether or not you or your staff have the discipline to properly handle the leads before making a big investment. If discipline is lacking, consider implementing a system that will ensure it, or abandon the idea of spending money on leads. It will also help you identify opportunities improve your process, like adjusting time between calls or adding email or direct mail to your communications. Modifying your approach beforehand can put you in a better position to maximize any leads you decide to purchase.

About Oak Street Funding

The materials in this paper are for informational purposes only.

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