Buying Leads or Generating Leads: What You Need To Know

Attracting prospects and converting all these to sales is a dynamic and complex process. A lot of factors influence generating leads and its success is highly dependent on how a company strategizes. Would they choose to generate lead vs buy lead for their business?

What is a Lead?

A lead refers to someone who shows interest in your company products or services. From a business perspective, a lead is essential as the potential customer must be enticed to purchase from the company as much as possible.

Various ways are available to ensure a high conversion rate from leads. The targeted audience must be aware of a company’s services or products thru email marketing, blog posts, or when a lead visits your website. 

Types of Qualified Leads

Visitors to a landing page can be converted to leads by providing their contact information, sending their email address for further communication, or using free trials. 

Here are some types of qualified leads to uncover:

Information Qualified Lead (IQL)

An IQL is a lead that is beginning its journey to be a buyer. They are at the stage of looking for information about a company and assessing if it fits their needs and demands. Sometimes, the IQL is referred to as a “cold lead.”

Marketing Qualified Lead (MQL)

The MQL is a step further from an IQL. This time, the lead is more interested in the company instead of being a passive viewer. A company differentiates the MQL from the IQL as the former does more to engage with the company such as doing call to actions or subscribing to website content.

Sales Qualified Lead (SQL)

SQL is more active in engaging with the company. SQLs are much closer to purchasing a company product or service. They are also referred to as “hot leads” and would be given priority to entice them to finally make the purchase.

Product Qualified Lead (PQL)

Lastly, the PQLs are leads who finally used a product or service. These are different from the free trials. Instead, they purchased from the company and are on their way to exploring more upgrades.

Buying Leads: The Pros and Cons

Companies have the option between generate lead vs buy lead to entice people to utilize their products or services.

The choice between buying leads or generating them depends on the company’s decision. However, the numerous factors that affect their choice make it a difficult task to decide.

Therefore, it is best to look into the pros and cons between generate vs buy lead. From here, a company can assess which of the two would fit their business models best.

First, the company can invest in buying a lead directly. Here is its good side:

• It takes less time to get leads. A company can get these as early as when people sign up for their services. Many opt to invest in Google Ads to work its magic of conversion rate, contacting target audiences, and improving landing page traffic.
• Buying leads means it is easier to calculate their return on investment. So, they would have a better comprehension of how their budgeting goes as they generate the leads.
• Leads would come in more consistently. The lead companies will do their task of ensuring a steady influx of leads.

On the other hand, be aware of the following cons of buying leads:

• There may be a lower quality of leads over time. Leads bought in may be of poorer quality because it is more geared towards quantity rather than quality. 
• More time may be wasted because of poor-quality leads. These leads are less likely to be converted to sales. The company team may be wasting their time talking to strangers who, in the end, are not interested to purchase anything.

Generating Leads: The Pros and Cons

A company can further boost its credibility and market success by having the correct strategy to generate leads. Instead of opting to buy a lead through other parties, a company can choose to invest in itself to generate its lead by its own means.

Pros of generating leads include:

• The company would get need a lower cost. They avoid the higher fees set by another company that has buying lead services.
• Generating leads can lead to a higher quality of leads. Better quality leads are essential in establishing trust and credibility towards their target audience.
• Also, generating leads gives the company full control over its marketing and innovation ideas. The company is not bound by contracts, so they can implement any idea they have to market their products.

But also see the following disadvantages of generating leads:

• Lead generation may take some time. Here, they may invest more money until their desired outcomes are reached. So, it is also expected that saving from buying lead-generating services may not necessarily cut down costs for the company.
• Generating leads may be unsuccessful, leading to a loss in sales. From here, budget cuts and losing staff.

The Importance of Lead Quality

One of the evident differences between generate lead vs buy lead is the lead quality. Generating leads is said to give better quality.

A high-quality lead is needed to ensure that the company attains long-term success. With this, leads are better converted into sales and would mean more income for the company. If a company is not careful, they may be exerting too much effort but would not be translated to sales.

Hence, a high-quality lead is needed to establish better ties with their customers, and eventually foster a great understanding of how to encourage their target audience to purchase their products.

Conclusion

Companies are tasked to understand their target audience so that they could have successful income generated from their leads. They have the option between generate lead vs buy lead. 

Each of these two options has its own set of advantages and disadvantages, and it is up to the diligence of the company to decide which of these is best for their operations towards success.

How Can We Help

Outstanding conversion rates are difficult to achieve without the appropriate strategy and skills to maneuver in the online business field. But do not be anxious, as there are companies that can provide aid and support to these needs.

At Premia TNC, we offer professional services to help you in generating leads.

We specialize in generating high-quality leads to assist your bussiness in thriving and meeting its growth objectives. We understand the obstacles that businesses face when it comes to attracting and converting new clients, and we are here to help you succeed.

Our company is filled with skilled and experienced individuals that could offer consultations and services. Feel free to contact us today.

FAQs