Buying leads could work with the right agency.
But many business owners get tired of chasing people on the phone just to experience a low conversion rate.
Building your own acquisition channels can be the solution.
First, the good
The biggest advantage with purchased leads is that you don’t have to do much.
Your marketing is completely outsourced.
The leads are delivered straight to your inbox, and you just call them.
You don’t have to do customer research, test various messaging, experiment with acquisition channels or lead generation methods. The agency you work with runs their own advertising. They create social media and google ads, tiktok videos or articles for platforms like Taboola and then hand off the leads when they arrive.
Clients also save time not having to create or approve ads, posts, or emails.
There’s a 60-minute setup call, and that’s pretty much it. Communication is minimal after that. What’s more, the cost is predictable, since you pay per lead, and there’s no long-term commitment (with a traditional agency model it’s usually the opposite).
If you are fairly good at sales, you could close some of these purchased leads and make a buck.
The hidden problem with purchased leads
Some business owners report a contact ratio of less than 10% and a conversion ratio of less than 2%.
A few reasons why that happens:
First, the agency resells the same lead to multiple companies. So essentially, you are paying to compete. That’s what they usually don’t tell you. They run ads, get the leads for $30, for example, and resell it for $100 or more. Once a prospect submits their details to learn more about a particular offer, they get 3–5 calls and various automated texts within 30 minutes. Naturally, prospects don’t answer a single one of those, and probably regret supplying their information.
Second, no brand or trust is built before calling the leads. Prospects fill out a random form, and don’t know your face or “story”. It creates a situation where leads don’t pick up the phone — and even if they do — they are not inclined to talk to you.
Third, you’re renting someone else’s system. You have no control over lead flow and consistency. If the agency you’re buying from raises prices, or goes exclusive with a competitor, your pipeline could diminish or even vanish. You depend on someone else for growth.
And lastly, not all leads are qualified to begin with. Either the agency attracts the wrong client, doesn’t invest in qualification, or both.
All these negatives stack up.
Many business owners give up and stop calling the leads.
Even if they had already paid for them, the experience is so terrible, they just don’t want to do it.
The alternative: build your own marketing funnels
There are many ways to do this.
Each requires either time, money, or both.
For example, SEO, content creation, cold outreach on Linkedin or Instagram, cold email or advertising, all are viable methods for client acquisition. The latter is my favourite. When you run ads, you don’t have to beg for attention through content, hoping your post reaches enough people. You also don’t have to chase people on social, sending unsolicited messages. Your job is to find the method that works for YOU.
Not everyone likes to run ads, same way I don’t like sending cold DMs. Not everyone can create social content that tops 90% of posts (frankly, that’s not one of my strengths either). As with anything, you must experiment to find the best route.
That sums up my thoughts on buying leads.
Build your own business — and brand — using what works best for you. Yes, finding a method that suits your business can take time and money. But it’s a lot better than relying on referrals you can’t control.