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Why don't CPA Advertisers buy leads directly from lead gen companies?

Discussion in 'CPA' started by ChampGuy, Aug 21, 2011.

  1. ChampGuy

    ChampGuy Junior Member

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    I've been looking into some lead gen companies, and its pretty easy to find some that will sell you call-center verified leads for people that are actually interested in auto insurance, or loans, or whatever vertical you need them for. They will send you all the info that the CPA offers ask for, and they will only charge you like $0.50 a pop whereas an auto insurance CPA offer might pay you $5.00 for the exact same information.

    Does anyone know why the CPA advertisers don't just buy directly from lead gen companies? Is it illegal or something?
     
  2. Jaykub

    Jaykub Power Member

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    it depends, i don't know what lead gen company u are exactly referring to but most probably they are using some "not-so-legal" techniques to generate their leads ;)

    but i'm not overgeneralizing here i know one company which DO really provide quality leads for a small amount of $$$ whereas some leads converts so that u won't get banned.

    i think the difficutly for CPA netowrks is to find the companies which provide qualitiy leads since there are many fraudsters out there :rolleyes:
     
  3. ChampGuy

    ChampGuy Junior Member

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    The companies that I found just buy general data, call the people and ask them if they have any interest in auto insurance, or EDU, or whatever the lead buyer is looking for, and then if the person shows interest they will take down their information and send it to the lead buyer. I wish their was some way to broker between them and the CPA networks.
     
  4. Jaykub

    Jaykub Power Member

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    Mhh okay i know a legit one which works this way: you pay them per lead lets say 50 cent - 1$ (but only email submits) -- and then they start campaigns wiht bought traffic and drives traffic to your landing page providing the approximate number of leads you have paid them for ;) ! Keep in mind these one's are really really rare and i really doubt that one cna find them easily on the internet since most of the other ones are scam ..

    the clue is that the company i know works with companies directly - so if you want to use it u have for example say you are a company and tell them that your offer link is YOUR optin list :D

    the others ones on freelancer for example are straight up scam :p
     
  5. ChampGuy

    ChampGuy Junior Member

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    Really? Do you have any experience with companies that generate leads through call centers? $0.50 per lead does seem a little bit too cheap to actually be targeted, but there are so many different companies offering targeted leads in that price range that it's hard to believe they are all just part of a giant scam.
     
  6. Jaykub

    Jaykub Power Member

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    50cent to 1 $ ^^

    i tried a huge range of them and as i've said 95% of all of them are BS :D

    maybe i start in the future a case study thread where i try those companies and track the results ;P
     
  7. Thub15

    Thub15 Regular Member

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    This is great stuff! I want to get some leads for my cr biz. Any ideas guys?
     
  8. jerzydawg

    jerzydawg Supreme Member

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    Get leads from the wrong person and the network will ban you for fraud.
     
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  9. Zeopro

    Zeopro Junior Member

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    A lot of those lead brokers are garbage.. the lists get sold over and over again. Many of the CPA companies when they have run a lead through their sale cycle will then sell the lead to lead brokers to resell.
     
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  10. eastwick

    eastwick Registered Member

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    anybody can fill out those leads
    they need leads that will come through on there end

    if you send them too many garbage leads, and no good ones,expect to be banned
     
  11. zhaosaccount

    zhaosaccount Junior Member

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    what's BS?
     
  12. alexking

    alexking Jr. VIP Jr. VIP

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    BS is "Bull S**t"
     
  13. cool0403

    cool0403 BANNED BANNED

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    One of my family members worked for an insurance company that got leads from these lead gen companies , and he told me that pretty much 90-95% of those leads were shitty, i mean shitty as in like when he called them up about his/her quote they just submitted the first thing they asked was "did i win my free ipod/laptop/xbox/[insert prize] " a lot of those leads are not targetted for people really looking for insurance leads. These people weren't interested in any insurance policies just the prize they got offered by probably some blackhatter promoting insurance leads .

    At the end they offer a refund policy so thats the is reason why those lead gen companies sell to like minimum 5-10 different insurance companies.


    I would suggest you talk to some brokers/agents that get those leads from those companies so you get a better view of what those leads actually consist of so you can see why those Advertisers woulnd't buy from them.
     
  14. soundboy

    soundboy BANNED BANNED

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    I have 3 lead gen offers on cpa networks and if they dont send me good leads I dont pay.

    If your looking to buy edu, mortgage, or auto insurance leads pm me.
     
  15. treelancer

    treelancer Junior Member

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    If they are worth anything i.e good leads, why would they sell them when they can make 10X more themselves....
     
  16. bewithme465

    bewithme465 Regular Member

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    SINCE ADVERTISER NEED PRESENT LEADS, THEY CHECKS TRACKS AND EVERYTHING, IF YOU GO DIRECTLY FROM cpa COMPANY WHAT IS THE CHANCES OF GIVEN LEADS ARE 100% RIGHT, SO MANY FRAUDSTERS ARE READY TO CHEAT MY FRIEND
     
  17. Zeopro

    Zeopro Junior Member

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    Many of the CPA advertisers are looking for fresh real time leads. Someone who was looking for health insurance 6 months ago isn't likely a hot lead.
     
  18. soundboy

    soundboy BANNED BANNED

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    80 percent of cpa network traffic is fraud anyways
     
  19. darkmonk

    darkmonk Regular Member

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    I don't think the OP was asking about fraudulent leads / lead quality through CPA networks. What he's asking is if you owned an auto insurance company for instance, why run a CPA campaign to generate leads, why not buy them from a telemarketing or other lead gen company.

    There are different costs that go up for higher quality offline/telemarketing leads. If you run that sort of campaign yourself it can cost a pretty penny to get a good list from a list broker.

    There is also consumer intent. If someone legitimately filled out the form and submitted their information, then in theory they may be more likely to convert than someone you cold called in a telemarketing campaign.

    Now for the call center verified leads, they may be 50 cents a pop, but do they have minimum volumes you have to buy? Many years ago I was negotiating with a call center firm and they had all sorts of minimum guarantees that they wanted.