Most HVAC contractors have a love/hate relationship with their lead services. In this podcast, Jason and Nolen explore the potential perks of buying leads, along with the sometimes disastrous pitfalls. Whether you’ve purchased leads in the past or are considering a service in the near future, you’ll gain some essential insights into the pros and cons of lead gen companies. Look Out for These Key Points * Does buying leads create long-term or short-term opportunities?* Do lead services contribute towards your brand development?* What expenses come out of buying leads?* How good is the lead quality? What Does Buying Leads Mean? Developing a client base takes time, money, and lots of effort. It may take years to develop a comfortable directory of loyal customers. For businesses longing for that initial stimulus of growth, buylings leads presents a very attractive, fast solution. Here’s how it works… How Lead Buying Works * Step #1: An HVAC contractor hires on a lead generation company.* Step #2: The lead gen company connects them with potential customers by phone or email.* Step #3: The contractor accepts or rejects the client, who may or may not decide to do business with the contractor. * Step #4: The contractor renders payment to the lead generating company. What is the Most Popular Pay-Per-Lead Company? Pay-Per-Lead (PPL) companies range from household names to somewhat sketchy businesses. While there are numerous PPL companies out in the market, you’d have a hard time finding a more recognizable name than HomeAdvisor. The business employs untold numbers of sales force personnel and boasts a vast array of contractors. How Much Do Companies Pay for Leads? That depends on the particular service you utilize for your leads. We’ll use HomeAdvisor as an example. According to the HomeAdvisor Pro How It Works page, HVAC contractors pay a mix of annual, monthly, and variable fees in exchange for leads. Keep in mind, the company does not guarantee any of these leads will convert into customers. To quote from their website, “You will be charged for each lead you receive, whether or not you ultimately win the job…” What Costs Can I Expect? * Annual Subscription Fees* General Industry Leads Costs (“Market Match”)* Brand Specific Leads Costs (“Exact Match”)* Supporting Service Costs When people request your company specifically through HomeAdvisor, your company may pay an even higher lead cost rate. You can set monthly target budgets, but lead costs may exceed that number. Questions to Ask When Buying Leads There are two primary concerns your HVAC business should consider when buying leads. First, you’ll need to consider the pricing structure of the service. Some companies quote a relatively low per lead cost, but quietly zing you with additional fees. Others charge higher rates, but do a much better job of outlining what that money buys. The even more essential question you need to ask is: “How does your company qualify these leads?” Is your money actually going towards connecting with ready-to-buy consumers,