Some people in the auto transport industry feels that all leads are exactly the same. I personally do not feel the same way. My name is Nicholas Dutko and I am the owner of Auto Transport Quote Services. There are many reasons why I don’t feel that all leads are created equally and I will discuss all of those below. I will also state that Auto Transport Quote Services has never done any of these practices listed below. I want to ensure that the brokers I sell leads to are getting a quality lead that they can make a healthy profit on.
- Remarketing Ads resulting in leads
- Display Network Leads
- Buying Leads From Another Lead Provider
- The Companies You’re Competing Against
- How Many Companies Receiving The Same Lead
Remarketing would be someone who already visited “Site A” and didn’t get a quote the first time. Now this usually means the potential customer went to other competitor websites and probably input their info into a few different websites. Then they see the Remarketing ad for “Site A” and finally requests a quote from. That lead is not fresh because they have been contacted by several companies already. Now your conversion rate will suffer and the lead is not worth the same price, in my opinion.
When a lead company is using Display Network their ads show up on MANY websites as banner ads and other various ad types on sites that are not always related to auto transportation. If someone clicks on your ad when they are in their Gmail (for instance), it is no where near the quality of a click as when a person goes directly to Google and searches “auto transport companies near me” or nearly any other key term people would search for to find an auto transport company. Another example would be going to a WWE Wrestling News website and they have banner ads as a way to make money. Now an ad pops up for Auto Transportation and the customer clicks it (most of the time accidentally). Now if that person actually fills out the contact form, that lead is no where close to the quality as if the customer searches from Google or Bing directly.
Buying Leads From Another Lead Provider
I would say my biggest pet peeve is when lead providers buy leads from other lead providers and resells the lead. This is a horrible practice, yet happens all the time. There is no knowing whether the initial lead provider did anything with the lead before hand or how many others that the lead went to. In my opinion, this practice shouldn’t be happening in this industry.
The Companies You’re Competing Against
The companies that are within the group receiving the lead makes a HUGE difference as well. If the companies you’re competing against is low balling customers, using scare tactics to gain business, bad mouthing other businesses to gain a customer, lying to customers, or any bad business tactics the chances of you succeeding with those leads is small. That is why Auto Transport Quote Services doesn’t allow this type of stuff to go on. I personally do my research on a company before I allow them to purchase. I am also available to all brokers that I sell to if anything fishy is going on. If a company is not following our rules, I will kick them out. I am already kicked people out before and I will do it again if need be. I want to make sure that the companies I am selling leads to are quality companies who will ensure this industry is around for as long as possible.
How Many Companies You’re Competing With
This is a major factor of conversions. The less companies in competition, the higher your conversion rate. If you’re competing with 9-10 other companies and normal conversion rate is 2.5% – 4%. Compete with 5-6 companies and the average conversion rate in 4.5% – 8%. Compete with 2-3 other companies and the conversions are ranging between 8% – 12%. Since I have started in the lead generation business I have always tried to be different that my competitors. I have always wanted my brokers to have a better conversion rate. The brokers are already going to make the calls, why not book more orders. If one employee calls 500 leads in a month, it is obviously better for them to book 50 deals instead of 12.
Lets do some math really quick. Lets say that your employee gets 500 leads for $1 per lead and they compete with 9-10 other companies. They average a 3.5% conversion rate. That would mean that they made 17 deals that month. At a $150 broker fee, that employee made the company $2,550. Take away what you sent on the leads, which was $500, you’re left with a total profit of $2,050.
Now, let’s use math to figure out what the total profit would be if you had better leads. Lets give the same employee 500 leads again, but these leads are $4 per lead and only compete with 2-3 other companies. That would mean they would book an average of 50 deals a month. With a broker fee of $150, the employee made the company $7,500. Take away what you spent on leads which was $2,000 and you’re left with a total profit of $5,500.
In the 2 scenarios above it is clear that competing with less competitors is best. The employees are going to make the same amount of calls, but now that made the company 2.5 times more money in the same span of time. This means the company makes more money AND the employee makes more money. When employees make more money they are usually happier and stay with that company for longer. That means less training new employees for that business and profitability stays higher for longer.
At the end of the day, I just wanted to point out that a lead is not created equally. I wanted to show that a company with a better lead and better businesses can create for a better work environment for auto transport brokers in this industry. I know that I personally generate less leads every month than my competitors, but I know that my leads are better. I have solid proof of this fact too.
If you are looking for a new lead provider, I would love the chance to earn your business and show you that I am a man of my word. Call me any time at (866) 594-3187 ext. 2 and that will go directly to me.