Lead Generating Sites Explained
All businesses need customers and using lead generating sites can be an excellent way to drive targeted customers to your website.
How do lead generating sites work?
Services that generate leads use a variety of methods to capture visitor details such as name and email address, phone number, address. In some cases, the lead generating site will also capture financial information such as mortgage details or insurance details. They place forms on websites and encourage visitors to enter their details, usually in return for some free information. The leads generated via these forms are sorted and sold to companies who are looking for customers that fit a specific profile.
For example, an insurance company might be looking for qualified leads for one of their auto insurance policies. It is much more cost effective for them to buy 100 qualified leads that they can approach directly than to try to get customers themselves by traditional methods such as search engine marketing or Adwords.
It is impossible to put a flat price on 100 qualified leads because the price will vary between lead generating sites. The more leads you buy, the lower the unit price will be, but through negotiation with the lead service an agreeable price can be set.
Lead generating sites often pay affiliates to find leads for them. They will pay a small commission to the affiliate of a dollar or two with the knowledge that they will in turn be able to sell that lead on for a profit. When a company buys leads from one of these lead generating sites, they will monitor their conversion rates very carefully. For example, if they buy 1000 leads and only get 1 conversion, they will be within their rights to complain and question the quality of the lead list. Most companies will expect a good conversion rate of 20 to 30 percent.
Lead generating sites offer a valuable service to clients who are selling a service. They take all the hard work out of finding customers and if you find a good service, they can generate thousands of dollars of sales for you.