It's the eternal struggle of anyone in the business of buying or selling leads - do I generate my own leads, or find somewhere to buy them? Well we at boberdoo have seen businesses succeed both ways, but they do have their own ups and downs. If you're thinking of generating auto finance leads, keep these pros and cons in mind:
- By generating your own leads, you’re really taking charge of your business in a way that buying leads just doesn’t allow. The flow of leads is up to you, any info besides contact info is yours to request, and this allows your business to operate at its own pace. No more trying to rush leads because of your wallet.
- When generating your own leads, you dictate the quality. If a lead is not good enough for your business, it’s not exactly wasted money – it’s acceptable to toss out leads that don’t fit your standards. This way your insurance agents don’t get stuck wasting time on bogus leads just because you’ve already spent money on them.
- According to Hubspot, on average, generating your own inbound leads is 62% cheaper than buying leads wholesale. That doesn’t sound too shabby now, does it?
- By buying leads instead of generating them, you really only need to know how to use a credit card and how to use your email. Contrast to generating, which requires knowing how to optimize SEO, work with PPC advertising, remarket, copywrite, and more. Buying leads is popular because it’s simple – anyone can throw down money for leads and start calling right away, which simplifies the business a lot.
- Not only do you need to know how to do all sorts of marketing and advertising, but it gets expensive. Some companies spend hundreds of thousands of dollars on Google advertising every year, or if you’re Amazon, over $55 million per year! So the cost of generating a lead versus buying a lead may be lower individually, but to stay consistent and grow your business, some investment is necessary.
- It’s always easiest for a business to start out with a single focus and branch out, and lead businesses are no exception. Why focus on generating when the bread and butter of your business is the client insurance side? Buying leads lets you focus on the business side of your agency.