While this is a perfectly natural question for a lead buyer to ask it often moves the conversation away from more important issues for any potential lead buyer.
For example, supplier A might charge £20 for a real-time remortgage lead and supplier B might charge £30.
The price difference in this example is fairly substantial and any adviser with a limited budget to spend on leads will often choose the cheaper option. However, the price ignores other factors that can be far more important.
Continuing with the above example, the lead provider that charges only £20 might require the lead buyer to take all remortgage leads up to 90% LTV while the supplier with the more expensive leads might allow the lead buyer to filter down to much lower LTVs.
In a market where lending criteria is still so tight, LTVs are often the difference between customers that can get a mortgage and those that can’t.
Therefore it makes sense for the lead buyer to pay more for a more filtered lead as it will have an impact on conversion rates and ultimately the return on investment from the campaign.
This is not just limited to LTV filters for remortgage leads. For the vast majority of lead buyers, it is not the price of leads that determines success or failure of a campaign but the performance of the leads and often this is down to many other factors rather than just price.
For the more experienced lead buyer that has tried a few different lead providers and has a good feel for the strengths and weaknesses of each, price should certainly be a factor when determining which suppliers to use but for lead buyers new to lead generation, getting to learn how the different filtering options can affect lead performance is more important.
