Thoughts on Lead Purchasing Websites

[RH-Jordie]

Something that I've been coming across more of lately is the ability to purchase leads for your web hosting company. Sites like HostVoice and FindMyHost now provide this. Do you think it is worth your sales reps' time to pursue these outbound sales and try to convert these people, or do you prefer to get clients through traditional means (e.g. posting offers & building a brand)?

Personally I've opened a HostVoice account, deposited $100, and found myself two clients as a result of the $100. I'd suppose that the meager two new signups were simply a result of my own shoddy sales work and simply not being an established brand or being new in business. So I'd like to hear your thoughts. Are leads worth purchasing? Why or why not?

 

[zomgmike]

In my experience over the last few years, the hosting lead services are as good as their pricing structures imply. By that, I mean if they bill you a flat rate like $5-$10 per lead, you get a LOT of garbage leads. Look for the ones that bill you a recurring amount based on the dollar value of the lead. Those cost a lot more, but you only pay if you close the lead.

 

[ruturaj]

In my experience over the last few years, the hosting lead services are as good as their pricing structures imply. By that, I mean if they bill you a flat rate like $5-$10 per lead, you get a LOT of garbage leads. Look for the ones that bill you a recurring amount based on the dollar value of the lead. Those cost a lot more, but you only pay if you close the lead.

can you give some companies who are into this

 

[hostmything]

can you give some companies who are into this

Can you try and reword your question? Lots of companies purchase sales leads in order to gain clients and hopefully boost their reputation and brand.

 

[bermuda]

Purchasing direct leads can sometimes be an effective way to make money, even establish some market shares and also have returning customers if you advertise your website on top networks where only targeted visitors and real customers access. This can be like reasoning why major firms pay $100 per referral and new signup to their affiliates because they are nearly certain their clients will renew their accounts yearly.

You may also consider making pretty attractive packages for first-time customers. For instance, offering a free domain name because you will not be the only company using paid leads, as there will be competition, thus the more attractive your offers, the finer chances of making a big impression on the undecided, hesitant potential customers who look for real deals.

 

[BradatA2Hosting]

From our experience, those sorts of sites send a lot of leads for customers looking for extreme hosting deals and discounts. If that's something that you offer, this may be a route you want to use for attracting new customers.

 

[TemasekTech]

alot of paid lead become garbage leads, like adword

 

[hostmything]

We have had little luck purchasing leads. IMHO its not worth the sticker price per lead.

 

[hostinghouston]

I am incline to agree with the majority here. We have also had little to no luck purchasing leads. The best sales come naturally. By that, I mean they come to you because of what you offer and they like what you have to offer as a service and support option. Offers are great too, but you run the risk of looking cheap. You might get a load of signups for an offer, then after the initial period, 95% of them disappear, leaving you with a ton of crap to clean. Often spammers and hackers look for offers too as it's within their budget, so be very careful.