Andrew Murray
Entreprenurialism, Investing & Network Marketing
Why You Should Never Buy Leads For Your Home Business
Author: Andrew Murray25 Apr
If you are in a home business, the only skill you must constantly develop is your own marketing ability.
In my opinion, you don’t have a business if it relies on a lead broker. Why? Because if that broker changes their rules, goes out of business, or raises their prices substantially because of something that happens in the marketplace… (Remember the marketplace is dynamic. Think “Google Slap.”) Then you just lost your edge.
Buying leads from a lead broker is like outsourcing the core part of your business. This is the core part of the business that makes it unique, and that makes people join your business. It’s crazy to do that. You can’t farm out your competitive advantage and hope your business will make it through a challenging time.
What most people don’t realize is that lead brokers have their own business model.
They are spending money on advertising, and selling you the results for as much as they can charge.
Let’s say to generate 100 leads it cost them $40. They will sell you those leads for $150.
They need their profit, plus their overhead, plus a cushion for all the leads that they can no longer sell that go stale, etc.
If you did your own advertising you could generate those leads for a similar amount to $40.
Now they also generate leads for the most part from “distraction” sources. And what I mean by that is advertising on other websites (think banner advertising, content network advertising like Adsense, and large co-registration email campaigns.) These sources are inferior to what you can do for even less money. The reason they use these methods primarily is because they are cheap.
You don’t want to build your business on any kind of “cheapest” metric. And certainly not on your leads, the lifeblood of your business.
They also advertise very generically. This makes good sense for them, because they want to sell their leads to anybody in a home business, whether that person is with Melaleuca or Perfect Wealth Formula, or whatever. The company does not matter to them. They deal in volume.
When you do your own advertising you can advertise more specifically. Not only will your response increase by wording your ad more specifically, which is one of the paradoxes of direct response marketing, but you will attract the right kinds of prospects to your business.
Learning effective, highly profitable lead generation is probably the #1 reason people work with us in our direct sales business. And if you’d like to learn from the best, we’ll teach you the specifics you need to develop. It’s not something you’ll learn overnight, but it’s something that we have an ability to teach.
Recently, Marie and I have created an introduction to generating your own leads. We created this generic training to get people to start using some of the lead generation strategies we have developed that have been so profitable for us.
Right now we’re in pre-launch. We’re still making changes, and so we’re offering it at a very low introductory price.
Expect that price to increase soon, I don’t know exactly when, but if you need to understand more about lead generation for your business, and you don’t want to work one-on-one with me, then I would buy it before we raise the price dramatically. As it stands you need to opt-in to see the salesletter. (As I said, we are currently making changes as we speak.)
Categories
Recent Posts
Recent Comments
Tag Cloud
WP Cumulus Flash tag cloud by Roy Tanck and Luke Morton requires Flash Player 9 or better.
Syndicate
Subscribe to this site's RSS feed.
Pages
Archives
- October 2009
- September 2009
- July 2009
- June 2009
- April 2009
- March 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
10 Responses for "Why You Should Never Buy Leads For Your Home Business"
[...] toddash wrote an interesting post today onHere’s a quick excerptIf you are in a home business, the only skill you must constantly develop is your own marketing ability. In my opinion, you don’t have a business if it relies on a lead broker. Why? Because if that broker changes their rules, … [...]
Great stuff! Thanks for sharing, one fresh
idea and you can change the world, keep
up the great work.
Hello, R U sending the CD’s that I requested?
I was online and couldn’t find MIM page. Only the magizine, what happened? Is Val still doing MIM?
Hello Andrew
I was one of your beta tester for your 3% and I sent you an e-mail telling you that the video would not play past 57 seconds and you never responded back to me.
To let me know what the problem was, so that I could correct it yes I do have dsl and I did try it on Internet explorer. I would definetly love to learn how to generate my own leads, because you are right some of these leads companies sucks.
Alonso
Excellent article about lead generation. This couple knows what their talking about, know them on a personal level. They are fast becoming, the Internet authority on lead generation, so take their advice today.
John.
I wrote you an email about the replacement CDs you wanted. As for Mentors in Motion (MIM), I am no longer promoting that program.
There are more profitable programs that are easier to sell.
Contact me if you are interested at 902-472-2260
Andrew Murray
A Liberty League representative informed me that he was generating an average of $1000 profits on every $50 lead list that he purchased. However, three months of effort in following up on several lead lists with him generated zero dollars of revenues. He contacted the lead lists during the day and I followed up with them in the evening. I am pleased that I listened to myself and not to him concerning the economic feasibility of $5000 conferences, advanced internet promotions and other promotions that would also likely have generated zero dollars in revenues and/or profits.
t is interesting that this person supposedly lost about $40000 on a internet high yield investment program as he promoted it to be an automatic method to generate profits. Despite his promotions of the profitability of this e-gold high yield investment program, I quickly obtained the vast majority of my initial investment back.
My initial impression of this program was correct as it went out of business months later.
This person also informed me that he was earning about $250000 as a TD Waterhouse stock broker and that he quit this position since he had to work sixty hour weeks. Due diligence is required when dealing with people that are good at promoting various profitable programs. Internet marketing can also have the risk of supposed business partners being nothing more than a temporary website address, phone number and/or e-mail address.
Overall, due diligence is probably a great policy to have when purchasing leads for an internet marketing business and/or associated programs.
Absolutely Brian.
There are a lot of cads out there online, and you need to take everything with a grain of salt.
Because of the lack of regulation, there is both a lot of opportunity and a fair bit of predators.
I was speaking to someone today and mentioned that there is a negative correlation between how much of ‘hard-sell” someone gives and how much help you will receive after the sale.
Always do your research before committing. The right mentor won’t expect you to do anything different.
Thanks for sharing your story.
Cheers,
Andrew Murray
Your welcome Andrew. I agree with your statement of “Always do your research before committing”. Due diligence can be a very good method of eliminating bad internet marketing and/or other investment opportunities.
Front page Toronto business articles outlining the receivership of a downtown condominium project is a very different outcome relative to the great real estate development that it was promoted to be, the challenge for clients to obtain refunds for vending machine purchases is very different from the large percentage profit sales projections made by the supplier of the vending machines and users experiences with investment software is very different from the rates of return promoted by the vendors. Due diligence would have discovered that the downtown Toronto condominium projects rates of returns were based on projections and not on actual results, that restaurant owners would have discovered that there would have been a “vast market in Canada” to earn several hundred percent R.O.I. annually for various restaurant vending machines prior to the time that this particular company promoted their restaurant vending machines and that the legal contracts for some investment software specifies that the projections used in the examples are not indicative of average results and that the companies are educational institutions and not ones that offer investment recommendations. These are just three of numerous examples that outline the importance of completing due diligence. I did not personally lose funds in any of these examples and they were outlined since people did lose money in all of these three examples. No doubt people are aware of scenarios where completion of due diligence that resulted in the elimination of bad investments.
It is interesting that several senior Liberty League promoters left the organization after the time that it was promoted to be a very profitable internet marketing program by someone who supposedly had a better idea than to work in a $250000 sixty hour per week position and that this person himself quit the business as he became very disillusioned with the financial rewards of this internet marketing business. This person mentioned after the time that he left Liberty League that a relatively small number of people that attended the $5000 conferences made any money at these events and that the top producers were investing large amounts of money in various marketing programs to obtain their sales results.
Overall, “Always do your research before committing” is probably great advice for anyone contemplating various investments. No doubt people have benefitted from eliminating bad investments and profited from good investment opportunities after they completed their research.
The Beijing Olympics are almost half over and the opening ceremonies and some of the events and other coverage were interesting to watch.
The Beijing Olympics reminded me of a Chinese stock promotion that was made to me last October. A man, who previously promoted the feasibility of turning $50 Liberty League leads into $1000 sales, promoted high percentage returns of fifty to seventy percent for Chinese stocks to me last October. I chose to ignore his sales ideas of Chinese stocks after I reviewed the charts for Chinese stock indexes and since none of his previous ideas were profitable.
The U.S. stock markets formed a bearish head-and-shoulders pattern in October 2007 and the U.S. and Chinese stock market indexes fell sharply from November 2007 to the end of March. The high for the U.S. stock markets and for the Chinese stock indexes occurred in October 2007, the month that this person promoted high perecentage returns for Chinese stocks to me. Despite the promotion of returns of fifty to seventy percent in Chinese stocks and even higher percentage returns for Chinese I.P.O. stocks, I was NOT surprised that the returns turned negative after the time that this person contacted me. None of his Liberty League ideas (including the generation of $1000 sales from $50 leads, $5000 conferences, various Liberty League internet marketing schemes, etc), internet high yield investment programs (HYIP), penny stock promotions or other ideas were ever profitable.
It is interesting that this person supposedly earned over $250000 as a TD Waterhouse investment advisor before he promoted Liberty League and Chinese stocks to people. This is especially true since this person mentioned that he lost over $40000 on a HYIP and since he initially promoted this HYIP to me in writing as a lucrative investment program that “works like a clock”.
Fortunately, I only listened to ONE of his ideas during the time that I knew him. Losses in excess of $10000 to $12000 would have occurred if I listened to all of his Liberty League and associated HYIP ideas. Investment in his Chinese stock ideas would have further increased these losses.
Overall, the importance of due diligence cannot be emphasized enough for various verbal promotions that are made by some entrepreneurs.
Leave a reply