[JayBallentine]

Yes by internet-based leads I mean companies like Lendio and Blindbid. The reason why the closing ratio is low is because from my experience 20% of the leads are unreachable, 30% of the leads you have a great conversation and never hear from them again and 20% have sticker shock when you first speak to them about rates and they lose interest. The remaining 30% you actually get full packages in and you're lucky to fund 3 to 5 deals. The saving grace of these internet leads is that you can usually get a refund if the merchant does not qualify for an advance or they are not interested in financing at all.

Sad statistics but true...

Good points - but I think let me add two ingredients to a great lead. This all based on leads I've delivered to clients and the myriad of tests I've run in my "lead lab."

1. Age of Lead? If more than 5 minutes old, you'd be better off closing your eyes, grabbing the Yellowpages, pointing and dialing. Here's data on this: http://www.leadresponsemanagement.org/lrm_study

2. Have the buyers' expectations been set? Do they really think they are on the road to getting $250k when they can barely qualify for $5k?

3. Are they inbound or interruption leads? If you cold call someone, pitch them, then sell that as a lead, you are doing your clients a dis-service.


OP - With $3,500, I'd go out and buy 100 envelopes, and 100 stamps. I'd hand write letters, or get my ole lady to (whose handwriting is better) and make my case as to why the merchant should call me. Make sure you target by vertical (business type) at first, then sub-segment as you go along. Take initial responses and use the characteristics of those initial responders to deploy more to them. Over time, you want to begin dabbling into post cards so you don't have to write. The idea is to use good ole fashioned ink and pen to optimize your message.

By the time you optimize your message, your market, vertical, you should have a larger bankroll for marketing and can start with post cards.

You partner with a credit card processing company, or an SEO company where you sell one side of a larger post card, and you take the other, you cut your costs in half and can get post cards out the door for about a quarter each.

If it appears to be fools gold, ex:

1. 100,000 targeted visits in 5 minutes!
2. 5,000 leads in 5 days guaranteed!
3. Leads from our "secret source!"

It probably is....

Read "The Lean Start-Up" - use Lean Methodologies to your marketing and you will never go broke.