Results 26 to 28 of 28
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07-18-2014, 01:20 PM #26
- Join Date
- Oct 2013
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- Designer
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- 597
Cleaning up some of these numbers
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Your numbers seem to be a little off Jay;
Lendio has spent $30,000 a month on just ONE campaign in the past. They've also made six figure purchases for lead generation platforms.
How does selling one lead to multiple lenders at the same time (same as Inside up, Buyer Zone, Leads2Results, Merch Quest, Edirex, etc.), infer that they don't spend money on lead generation?
If you are a lead generation company, your customers are BOTH, funding companies AND business owners, as you are the one attracting both of them and bringing them together. A good lead gen. company has to do double the work, as anyone who's marketed in this space successfully for years knows.
"Chase DOESN'T BUY leads and they decline as many deals as possible??"
Not sure how you mean that, Because JP Morgan Chase was in the top 10 in marketing spend last year, and in the lending industry, top 3, with almost 2 BILLION DOLLARS spent. You'd probably be swamped with an ocean of unqualified leads if you spent that much on marketing as well. B of A and Wells Fargo also have marketing budgets in the millions per year.
Just because a marketing company advertises one specific niche doesn't mean they don't do other niches as well. I've done campaigns for Uber cars, medical industries, and staffing, but I've never advertised that I do those things. How would anyone know if a company only does alternative lending and that's it? A bit presumptive.
There is a cost (an investment) to acquiring a SUSTAINABLE source of leads, whether you pay a third party to do it, you pay someone in house to do it, you learn it yourself, or you spend the time and energy building a network of referral sources. While in principal, the methods you speak about (landing pages, email, videos, etc.) do work, by "talking down" to the logic of buying leads, you're greatly minimizing the amount of work and expertise required to successfully execute those strategies you mentioned.
A great landing page means nothing if you don't know how to get qualified traffic to it, and THAT'S the hard part. You can use Wordpress.com or Weebly.com to create a great site very quickly.
An email blast to 100,000 owners is useless if you can't get the emails into the owner's inbox, you can't get them to click it, you can't keep them from dispositioning your message as spam, you can't get them to respond back or pick up the phone and call you, or you can't get them to visit your site, you can't keep your server from being blacklisted, stopping you from being able to deliver to the rest of your list. The avg. response is 1/3 of 1%, and I've seen as high as 15% from top guys.
Videos are very popular but the top marketers have known that for years. But it's entertaining and/or informative videos that are popular. That video of you sitting on the bench feeding pigeons ritz crackers, is not popular. Nor will it generate leads. And how would an Iso/lender know what to film that would hold a business owner's attention, then entice him to come for funding. (And no, the answer is not, a video about funding). How many funding videos go viral, unless MAYBE they had a tv commercial? Forget about production values involved in filming a decent looking video quickly and efficiently
If you want to build your pipeline quickly, you are going to spend money or time (which is also money) one way or another. You are not just going to walk into this industry, or any other industry with major competitors, and think you don't have to do any work or spend any money, just run a few ads or do a campaign or two, and just start capturing market share, even if it's growing. Too many people think that way, and when marketers trying to sell books perpetrate that message, it encourages people to think they'll see success and 24 - 72 hrs with no experience or expert knowledge.
The real story is that IF you take the time and energy to learn how to market, even IF it's just ONE vertical, like videos, and you learn it very well so you're highly adept, you will generate leads at a wholesale price and have exclusive control of the source, which is more sustainable and cost effective than buying leads. IF you do this, IF you are willing to keep trying and fail and keep trying, and testing and tracking. IF you have no desire to become good at this or pay someone to be good at this, if this is not your makeup, then you should buy leads, and that's what a lot of funders do. It's not wrong or right, it's simply a choice.
As for statements made about great lead generators becoming Isos/funders themselves, they're a bit silly. Why would a great marketer who is having success, decide, I'm in my prime and at the peak of my success, let me change industries? (we saw how that worked for Michael Jordan, watch the documentary called Space Jam if you didn't). Just like it's been proven that most funders aren't very experienced marketers, most marketers have no desire to lend money and learn underwriting. Now I have seen top guys go the Iso route, but they took the time to learn the industry before they did, so it wasn't just some random plunge, they invested in learning the game first.
The one thing I might agree on is the wording for Government Grants, it could be misleading. But again, maybe this is predicated on a relationship with a govt. agency or some other. It will likely attract a lot of unqualified people but hey, that's their strategy so you can't knock someone for trying.
No biz relationship with Lendio, just clarifying some numbers and misconceptions.Last edited by Franklin; 07-22-2014 at 02:53 PM.
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07-22-2014, 06:14 PM #27
- Join Date
- Jan 2013
- Location
- New York City
- Posts
- 409
Leads "don't die" but numbers never lie. 6 million B2B leads were studied and found that the relative value of a lead declines precipitously after 5 minutes. Think of it as a curve. Most of your money will be made from the leads you respond to within 5 minutes.
Additionally, you may recall I had a widget that addressed this problem. If a lead were to be entered overnight, an automated call is initiated between buyer and seller in order of first to last at the commencement of normal business hours.
Also - keep in mind that only 2% of folks buy from the first place they land in Google. So, if you're spending $30-$40 per click it's incumbent upon you to do all you can to reach out to leads within 5 minutes.
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09-27-2014, 09:39 AM #28
Cash Advance and loan type leads are to hard to sell straight out, because there are to many variables to set a price before talking to the business owner. We developed a program where we do all the marketing then talk to the merchant, ask questions and pre qualify the lead before transferring to the Inside sales reps. All leads are exclusive, as fresh as can be and already prepped for the reps to sell AND we only get paid if sold (a percentage like the Agents) and we generate a good volume too (we only work with large rooms with and inside sales force ready to take inbound transfers) these are transfers from a hand off from one of our "Senior Administrators" so we introduce the business owner and explain what they are looking for before getting off the line. We have had Tremendous success in both the merchant Service and Cash Advance industries with this transfer lead. This allows the Cash Advance company to do their job and we do ours, that is a true "Partnership" when it comes to leads, we have grown at a rapid rate and opening another facility in a few months, i think this type of system addresses the problem for big cash advance companies with a strong inside sales force, the small guy is still SOL.