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Jared Hamilton
From: Jared Hamilton
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Amy Taggart

Amy Taggart Marketing Manager

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What Questions Do You Ask a Lead Provider?

 

 

It's a topic we've addressed before here at Carloan.com, but it's one that is worth revisiting because it keeps expanding.

More dealers are relying on outside companies to help them build lot traffic and drive revenue, and they do their homework before they sign up for marketing services. As a result, they are more knowledgeable about what auto finance leads are and how they are generated. Dealers are looking to lead providers to provide answers to questions like these in order to make an informed purchase decision that will have an immediate impact for their business.

When our sales leader Bob Harwood last wrote about this topic, he covered questions like "Where do the leads originate?" and "Are the leads exclusive?" Naturally we have great answers to those questions when it comes to our products -- we just published a video last week that talks about our Auto Lead Generation Network.

Some other questions to consider  include:

  • What is the average ROI? (check out the video uploaded this week)
  • How long is the ramp-up period once I've signed up?
  • How precisely can you target consumers in my market?
  • Can you help me with lending to get deals funded?
  • Is there any training and support available?

Your lead providers should be able to answer these questions -- and answer them in the positive.

What other questions do you need answers to when you're looking at 3rd party lead programs?

 
Jim Bell
I always want to know what the audience is. If it is small and they are asking a lot of money for it, probably not a good investment or ROI. I had one company make a presentation to me and they had 500k uniques in a month and wanted me to put my inventory on their site for $995. That number is so small compared to the other sites that I obviously passed. The other thing that I ask is are the leads returnable. That is one thing that I have had great luck with Dealix and Vehix. If they aren't responding to calls/emails, I don't think that I should be charged the $19-$22 per lead. They are bad leads in my mind. I also look at all of the reviews from other dealers on sites like this one to see what other dealers are saying about them. If customer service is poor, I may pass on it also. I do think that the audience and the ROI is key.
Amy Taggart
All great things to consider as well - thanks, Jim. Follow up question for you out of curiosity: which do you think is the best provider out there? You mention Dealix and Vehix.
Jim Bell
We do have pretty good success with those and are closing between 9-10% of those leads. The thing that I do like about them is that they are pretty much hassle free to return them and not pay. The best provider needs to be your own website. I know that we are closing almost 30% of those leads. Once they get there, then you should have a buyer. It is all advertising in my eyes just to get them to your website is how I view it.
Bryan Armstrong
The return policy and what "scrubbing" they do. I have had great luck with Dealix and they have even given me credit for leads that were duplicates from my own site, not just their system, accepting my screen shot as proof. The truth of it is, that I do not care for 3rd party leads but have them to capture the traffic I may otherwise miss. I put more of my budget into building my own site, Brand and even micro-site, SEM, and banner display. Take that $2k a Month and set out on a buildable stratagem and dominate your own market. I wrote about it here in a blog that carries the same theme- http://www.drivingsales.com/blogs/paradigm-shift/2011/02/15/3rd-party-listingsfriend-or-foe Good Luck!
Amy Taggart
Great point Bryan - sounds like you really have your arms around what it takes to be a "digital dealer" these days.

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