Is it Smart to Buy Leads to Increase Sales?

Is it smart to buy leads to increase sales?  When you buy leads you are usually purchasing the name and phone number of someone who is supposed to have expressed interest in your product.  The other kind of lead you can buy if you are in MLM is someone that is looking for a home based business opportunity.  When you buy leads you are going to be buying them from a company that gets leads off the internet.  These companies make money because you are buying leads from them.  They do not make money because the leads are good to increase sales.  In some companies you are expected to buy leads from your leader in the company.  Are buying leads off the internet a good idea to increase sales?

Why You May Choose to Buy Leads to Increase Sales

One reason you might buy leads is because you get a lead to call today. If you don’t know how to get sales leads yourself this might make sense.  One of the benefits that people who sell leads will claim is that the leads are “pre-qualified”.  Pre-qualified means the lead is supposed to be already interested in your product or business opportunity before you even call them.  It may seem to be a good idea to buy leads to get increased revenue in your business fast.  Just remember if it seems too good to be true, it probably is.

Why You Should Stop Buying Leads Immediately

There are many reasons why buying leads almost never will increase sales for your business.  One problem with buying leads is that many times the lead has been sold to at least 2 other people and sometimes as many as 4 or 5 people.  That means you still have to compete with another company to make a sale from that lead.  What is the point of buying leads if you still have to compete with another company?  This a major reason I feel it is a waste of time to purchase leads.  Another reason it is a bad idea to buy leads to increase sales is that many times the companies that sell these leads don’t tell you something very important.  They don’t tell you that many times they have given this lead a prize or incentive for giving their information.  Why is that important?  Because often times the lead was interested in the prize for their information, not your product or business.  This wastes your time you could be spending increasing sales by getting hot leads from other sources.

The biggest problem you have if you buy leads is that you are investing money in the leads.  That means that you have to make a certain number of sales just to get the money and time you invested back.  You will have to learn sales skills and have an excellent phone script to turn these leads into customers or distributors.  Most sales people and business owners simply do not have the sales skills to get enough sales to make a profit.

Learn Lead Generation Systems

I have worked with thousands of sales people and business owners to increase their income.  From what I have seen, 99% of people who buy leads lose money.  The only lasting solution to not having enough leads is to learn to create leads yourself.  You must stop looking for quick fixes.  Take the money you are currently investing on leads and instead invest in learning lead generation skills and systems.  When you can generate leads for your business consistently, you will have control of your income in any economy.

Special bonus – Watch your FREE Lead generation video by clicking HERE

Kris Thompson

Master Sales Coach

Increase Sales Training

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Comments

  1. Very valid points, Kris. Another thing the companies don’t tell you is how old the list is! I’m in the middle of writing a free report for my list on Email Marketing where I pointed out the danger of purchasing mass mailing lists from companies that will result in spamming.

    I definitely agree with you that these lists are a waste of time and money and it’s much more effective to learn how to build your own leads or list. Thank you.

    • Kris says:

      It’s way better to add value to your niche and build rapport with them. Your list IS your business. Thanks Yvonne!

  2. Ivan Penkov says:

    Very good post. Thank for sharing your thoughts. The secret was and still IS in your list.

    • Kris says:

      Thanks for the comment Ivan. Yes, your list is the backbone of your business. There is nothing more import to a business.

  3. Clara says:

    I bought leads several yrs ago and trust me it I lost money. Many of the numbers were no longer working. They were not good qualified leads. Some even became irritated with my call.

  4. Clara says:

    I really like the trojan horse. I was trained that when you have a sales presentation and you don’t ask for referral. You actually leave thousands of $$$$$ on the table. Warm markets alwasy seem to work best.

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