Whether you’re just starting out as a contractor or are looking to grow your business, you need good, solid, reliable leads. You want leads that will connect you to your next client, someone who’s interested in the services you offer and has interacted with your company at some point in the past through your website or from hearing about you from another satisfied client. Ideally, they know something about who you are and what you have to offer them. This sort of customer is exactly why you should never purchase leads.
1. It Damages Your Brand
First and foremost, bought leads can damage your brand, and that’s bad for your business in the long run. Whether you buy a list of emails, a collection of phone numbers, or hire a company to do the cold calling for you, this approach can cause serious damage to your business’s reputation. After all, do you want to be known as the contractor who clogs up people’s email inboxes with completely unsolicited messages or who calls people at home out of the blue? It won’t take long before you’ve gained the reputation of “the company who never stops calling,” which could make potential customers who have legitimate problems you can solve avoid you simply out of principle.
2. It’s Invasive
It’s just not worth it to buy leads and try to reach out to people who’ve never interacted with your business before and might not even be aware that you exist. This type of invasive marketing might net you a few leads, but you’ll also gain the ire of a lot of people who have no need for your services and didn’t want to be bothered to begin with. If you’re cold calling people, it’s pretty unlikely that they’ll be listening to your carefully crafted sales pitch – they are going to be wondering how you got their number and how to get you off the phone. If you wouldn’t want to be annoyed by random calls while you’re having dinner with your family, why would you think the people on the list you bought would want to be?
3. It Has Bad Response Rates
According to a study done by MailChimp, positive engagement falls off a cliff when the names on your mailing list come from purchased leads. Open rates are poor, at best, click-through rates are terrible, and general interaction with your emails is nowhere near what you would want it to be for something you spent your valuable marketing budget on. The only thing that goes up is complaints.
The same is true for cold calls. In general, cold calling only gets about a 2% success rate in getting an initial appointment with a potential customer. And that’s only after you’ve had to explain to the person on the other end who you are, what you do, and why they might need your services. That’s a HUGE investment of time and energy on your sales team’s part for a miniscule return on that investment.
4. It Might Provide Unreliable Information
When you purchase leads, you don’t know a lot about the quality of the information on that list. Information changes over time – people move, get different phone numbers, and so on. If you’re working with a company that uses simple web scraping techniques to gather information, you may be acting on outdated or inaccurate information. If it’s difficult to get engagement from a cold call when all your information is accurate, it is almost impossible to get conversions when you’re asking for the wrong person.This ties
This ties into damaging your company’s reputation: not only are you potentially annoying potential customers, you’re annoying people who aren’t who you thought they were. All your demographic information about the lead went out the window when you called expecting to speak to a retired couple looking to renovate their home now that their children have left the nest and instead reached an early 20s single mother.
5. There Are Better Alternatives
Why would you pay for leads when there are better alternatives? Purchased leads are part of the outbound marketing style. You’re pushing your sales message out there any way you can, through cold calls and email blasts, hoping someone – anyone – will listen and pay attention. It’s a literal shot in the dark, and it’s getting less effective all the time.
At the opposite end of the spectrum is inbound marketing. Inbound marketing is all about focusing your efforts into making sure that your website is a resource for potential customers. Your website should be easy to find through SEO and SEM best practices, visible through social media, and should answer your customer’s questions.
By concentrating your time and energy on having valuable content like blog articles on your site, you’ll start building a relationship of trust and gain leads that are truly worth following up on.
Why would you waste your company’s marketing budget and potential customer’s time and goodwill on lists of leads that don’t go anywhere? When you work with Contractor Dynamics, we’re here to help with all your inbound marketing needs. Whether you need a website, comprehensive SEO marketing assistance, or both, we’ll help you develop a long-term vision for your contracting company that will generate the kind of quality leads that will help your company grow. Contact us today to learn more!