Are 3rd Party Leads Overpriced?

Randy Taylor
Name: Jdscfq Aklfgj E-mail: Address: Ksajl;gdjea, Lehi, UT, 84043 I received this lead on the 6th. Yes, it is an actual lead and I know this same person or someone in his family has contacted you. It came with a valid phone number. But the gentlemen who answered the call had no idea why I was calling. For the past 3-4 months, I've gone from working leads soup to nuts to basically being a BDC. For the first 10 years I worked Internet Sales, I really paid no attention to leads. Give me the phone and email and I'm contacting the customer. I did not care where the lead came from. Well, not true. I still prefer Costco leads. To the point. While the lead listed above is obviously bogus, I'm amazed, shocked and just pissed off that such a high percentage of leads we receive are just as bogus, they just look real. Wrong names. Wrong phone numbers. Wrong email addresses. And wrong vehicles specified. On the fly, I can't tell you the percentage of leads that have one or more of the above issues. But that number is high. Or, how about leads where someone is looking to sell their car, trying to get an estimated value, and the lead provided charges you for a lead that "never was". Based on quality, the price of 3rd party leads is outrageous. Yes, you can apply for credit. And I'm finding that to be very time consuming due to the high volume of bad leads. What is your experience?
Jim Bell
I have been slowly but surely cutting my pay per lead (cut NLP last month). Vehix and Dealix are good to work with in getting credit, but you are right, it is time consuming. I have to be in there almost every day scrubbing leads to see what is valid and what's not. I am starting to see a little more quality from Dealix than I have in the past. But that is different for every market I think.
Bob Harwood
Like with any product or service, the value of third party leads can only be accurately determined as it relates to your ROI. 3rd party leads are a necessary part of a comprehensive marketing plan, and if you choose the right provider and work the leads properly you will end up with a far lower cost per sale than any traditional advertising methods. Before I go on, in the interest of full disclosure, I work for a lead provider, but I believed the same thing when I was in retail, and I don't think it is so much an opinion as fact based in simple math. Clearly the lead you referenced is junk, but I can say without hesitation that we wouldn't have delivered that lead to any dealer. Since we are a licensed lender we are lucky enough to have permissible purpose that allows us to verify that our leads are real people BEFORE we ever deliver them to a dealer. Shoot, we can even do some credit screening before we deliver the lead to make sure that they fit into your lenders' acceptable range. Of course I'm not saying that we have the magic bullet and have eliminated bad leads from the equation. We know that a few will still sneak through, but we've made the process for handling them as streamlined as possible, so you just have to click a button to let us know that a lead is bad and we'll replace it with a fresh good lead. Finally, we've developed a process to de-dupe the leads, so we'll only provide you with leads that you haven't already received from another provider or your own sites. Yes, on a price per lead basis quality third party leads can seem cost prohibitive, but with the right partner the return far outweighs the cost.
Alex Chew
If you think 3rd party leads are overpriced or have bogus information there is an alternative, you might want to try CarWoo's car buyers are different, they charge each consumer who is looking to buy a new car $49 to use their marketplace. This fact alone filters out tire kickers, versus car buyers. You as the dealer are never charged for leads or the ability to communicate with their buyers. 75-80% of consumers who use CarWoo buy a car within 4.5 days.
Ken Potter
Being a 3rd party provider I can attest to the junk in the system, some of which is consumer behavior and some is outright bad behavior by the second and third tier of lead generators who sell their leads through 3rd party providers I can tell you that we all strive to deliver quality and some do a better job than others. You should ask every provider to show you where they get there leads from and who exactly are their affiliate providers or generators With regard to price, the best metrics are awlays cost per sale or ROI. As I say to everyone, all providers have some good leads and some leads that wont be good, the question is which ones are worthwhile sloshing through and that can vary by make or market The vendors must provide a value to the dealer and be accountable to them. If not they don't deserve your business. All of us have ways to work with a dealer to limit the leads that dont perfomr well, what you recieved was outright junk and should not have made it through
Bryan Armstrong
Randy, Since you are just across the street from me, I have mixed reaction to this post. The first is outrage that some 3rd party provider would even waste the time of a fellow professional with such obvious junk, the second??? Well, quite frankly, glee that you will be forced to spend time applying for credit and deleting follow-up on obvious crap and not engaging a real customer that is in our shared Market. ;) 3rd party providers can be an integral part of a good Marketing plan, but on a site like this, we all need to band together and call out the inept. What was the lead source?

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