If you’re looking to hire a lead generation company, you might be wondering what really makes different lead generation companies unique. After all, most of these firms make similar promises and have similar service offerings; they might all claim to have the same levels of expertise or experience with your industry. So how do you decide which company is really the right one for you? How can you make a fair comparison among multiple lead generation companies?
Here are a few key questions to ask when evaluating lead generation companies, before you sign a contract:
Are the lead generation reps based in the USA?
Many companies say they are US-based, but this doesn’t always mean the same thing. Some firms have a US headquarters, but then use offshore/overseas calling centers to provide their staff of reps who will actually be making the phone calls. If it matters to you to have your business represented by US-based talent, you need to ask upfront and make sure that any of your lead generation calls or appointment setting calls will be handled by US-based reps.
Are the company’s reps employees or contractors?
Again, this is another area where some companies are not 100% upfront about the details of their operations. Many lead generation companies farm out the work to independent contractors or sub-contractors. This saves money for the lead generation firm but might not help your business get the best results – and also, you might prefer to have more transparency and accountability for how your business’s confidential information is managed. These concerns can often be addressed better if your firm uses in-house employees instead of farming out the work.
What is the program structure – is it Pay-Per-Lead?
There are a few different ways to set up lead generation programs, ranging from fixed fee to billable hours compensation to Pay-Per-Lead, where the lead generation firm only gets paid for each new business lead that they produce for you. Especially in this era of pay-per-click ads, it might sound like Pay-Per-Lead is a good deal – but the downfall of this type of program structure is that it creates situations where the lead generation reps make very aggressive calls. This can alienate your prospective customers – you don’t want your pool of potential customers to get turned off by overly aggressive “hard sell” phone calls from your lead generation reps. If you are
paying on a per lead basis, that means that the reps are basically working on commission. This structure might sound good in theory, but it often results in lower-quality sales leads and poor attempts at lead qualification. Instead, you will get better results by working with the lead generation firm to create a program structure and compensation model that works for both of you – it’s worth investing in better-quality leads.
Do they provide lists?
Good lead generation companies will know how to develop solid calling lists based on your solution, your industry, your location, and other factors. If a lead generation firm is asking you to provide the list of prospects, that’s a bad sign – because it means they’re not willing or able to put in the work to help expand your pool of potential leads. Also, this often becomes a way to “pass the buck” if things don’t go well on the phones – the lead generation companies can then try to blame their poor performance on your list, rather than their reps.
Are leads developed via multiple touchpoints?
Too many lead generation companies are not spending enough time getting to know your prospects. Good lead generation firms have multiple touchpoints to educate the prospects about your business and gauge their level of interest; for example, multiple phone calls and follow-up email conversations. If they are only qualifying leads based on a single touchpoint, this can cause issues with lead quality, as the prospects haven’t gone onto your website or done their homework prior to the meeting. Before you sign up for a lead generation program, make sure they are using a multiple touch point approach, so you aren’t wasting your time trying to sell to people who don’t understand your solution.
Clearly, not all lead generation companies are the same. Be wary of any firm that tries to promise you amazing results with no upfront costs, and make sure you can get your questions answered in an honest, straightforward way. Ideally, your lead generation firm should treat your company like a valued partner, will be excited about your competitive advantages, and will be eager to collaborate openly with you to expand your pool of prospective buyers.