Buying leads: a step-by-step guide

Buying leads well follows six steps: work out what you can pay per lead, define the leads you want, choose the type of source, evaluate vendors against written criteria, run a small measured test, then scale only what produces customers at a cost you can afford. Each step has questions you can answer before you spend.

How to buy leads in six steps

1. 1

   Set your numbers

   Work out what a customer is worth, your close rate and the most you can pay per lead.

2. 2

   Define your criteria

   Write down the vertical, sub-types, geography, lead type, delivery method, caps and consent you need.

3. 3

   Choose the type of source

   Decide between lead generators, brokers and networks, marketplaces and aged list sellers.

4. 4

   Evaluate vendors

   Ask each vendor the same questions and get the answers in writing.

5. 5

   Run a test

   Buy a fixed number of leads in one area, worked by your normal process.

6. 6

   Measure and scale

   Compare cost per customer with your target, then increase volume in steps or stop.

If you have not yet decided whether to buy at all, start with is buying leads worth it. The steps below assume you have.

Step 1: set your numbers before buying leads

Vendors quote a price per lead. You need a number to compare it with. Work it out from your own data:

1. Take the gross profit of an average customer or case.
2. Decide the most you will spend to win one customer.
3. Find your close rate on inquiries, and expect it to be lower on bought leads at first.
4. Multiply the most you will spend per customer by that close rate. That is your maximum cost per lead.

The lead cost calculator does this math. Cost per lead explains the formula and how lead pricing works explains why prices differ.

Step 2: define the leads you want

Write a short specification that every vendor receives. It stops vendors from selling you leads you cannot use, and it becomes the basis for returns.

For the data fields and records to require, see lead quality standards.

Step 3: where can I get leads from?

You can get leads from five main types of source. Each sells differently:

For a side-by-side view of source types for MVA and home improvement buyers, see compare lead sources. What is a lead broker and lead marketplace explain those models.

Step 4: what is the best company to buy leads from?

There is no single best company to buy leads from. The right vendor is the one whose leads match your criteria, arrive the way your team can work them, come with consent records, and produce customers at a cost below your target. Find it by asking every vendor the same questions:

• Which verticals, sub-types and geographies do you cover, and at what volume?
• Where do the leads come from, and how are traffic sources reviewed?
• Is each lead exclusive? If shared, with how many buyers?
• How old is a lead when it reaches me, and how is it delivered?
• Can I set filters, daily caps and the hours I accept leads?
• Does each lead come with a consent record, and can I retrieve it on request?
• What validation runs before a lead is sold to me?
• Which leads can I return, within what period, and how are credits applied?
• What contract length and payment terms apply?
• Can I start with a small test?

Warning signs: no clear answer on where leads come from, no consent records, no return terms in writing, "exclusive" without a written definition, or pressure to commit a large budget before a test. A longer vetting framework is in how to evaluate a lead supplier.

Step 5: run a test

1. Pick one geography and one sub-type you serve well.
2. Set a fixed test budget, large enough for your normal close rate to produce several customers.
3. Agree the measures and the review date before the first lead arrives.
4. Set up delivery into your CRM and test it with the vendor before going live.
5. Work every test lead with your normal process: same callers, same attempts, same scripts.
6. Tag every lead with its source so results stay separate.

A test run by a different process from the one you will use at volume tells you little. If you buy from two vendors at once, run them side by side on the same terms.

Step 6: measure the results and scale

If cost per customer is below your target, increase volume in steps and keep watching each measure. If it is above, check follow-up speed and criteria first, then decide whether to adjust or stop. See lead conversion rate for what moves close rates.

Contract terms to get in writing

• Lead definition: the criteria from your specification.
• Exclusivity: exclusive or shared, with the number of buyers.
• Returns: qualifying reasons, the window to request, and how credits work.
• Consent records: what comes with each lead and how to request the full record.
• Caps and pausing: how to change volume or stop delivery.
• Contract length and payment terms: how long you are committed and when you pay.

Summit Leads is a lead generation brokerage that buys and sells leads by ping/post in MVA / personal injury and home improvement, in all U.S. states. Leads are exclusive by default, there is no long-term contract, and return terms are agreed on the onboarding call. See for buyers.

Common mistakes when buying leads

• Talking to vendors before setting a maximum cost per lead. You have nothing to compare quotes against.
• Vague criteria. Without a written specification, you cannot return leads that miss it.
• Testing too small. A handful of leads cannot show a close rate.
• Scaling before the result is clear. Large volume hides problems that a test would show.
• Not checking consent records. Ask for a sample before you start, not after a complaint.

Frequently asked questions

Related guides

• Is buying leads worth it: The questions to answer first.
• How to evaluate a lead supplier: A vetting framework for volume buyers.
• Compare lead sources: Source types for MVA and home improvement.
• What are aged leads: How aged leads are sold and used.
• How lead returns work: Return reasons and credits.
• For buyers: Real-time MVA and home improvement leads.

Generating traffic? Join as a publisher.