Leadbay ceases trading
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Lead generation firm Leadbay has stopped accepting new business and is seeking a buyer, Mortgage Strategy understands.
The firm has not appointed administrators but is believed to be looking at its options and working to protect its assets and pay creditors.
In May Leadbay’s parent company, Add Momentum Holdings joined forces with the All About Group, creating the largest financial services lead generation company in the country.
The combined brands, which traded as Leadbay Media Group, supplied advisers with more than 60,000 leads a month.
Leadbay Media Group is headed up by Rob Ridge, with Grant Stevens, managing director of Leadbay.
Jerry Figueroa-Lee, director of the Mortgage Warehouse had been chasing £420 from Leadbay since September but with no success.
But after being contacted by Mortgage Strategy last month Leadbay paid Figueroa-Lee in full within the hour.
He says: “It is difficult for everyone in the mortgage market at the moment with brokers trying to scrape a living.”
Kevin Friend from Sitefinders.co.uk says that long gone are the days when £300 per enquiry for a sub-prime remortgage was paid.
He says: “In my experience during 2010, in particular, I would say that I have seen Leadbay drive down the price of customer enquiries (leads) without realising the true customer value. Any major player in a sector will have an impact on price in a market.
“I believe we will now see a more stable pricing structure, understanding that enquiries from consumers for mortgages are often valuable as future clients, or in other areas such as debt advice or compensation claims for mis-sold products.”
Friend adds that the market share Leadbay in the lead generation market has is “significant” and that it would be interesting to see what impact it has on the remaining lead providers left in the market.
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Readers' comments (29)
Anonymous | 22 Dec 2010 2:28 pm
Not surprised, we tried buying leads for 3 months a couple of years ago. You would be as well just calling people using a normal telephone directory you would get the same conversion rate and it wouldn't cost you anything.
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Anonymous | 22 Dec 2010 2:35 pm
Not surprised? You obviously couldn't work the system.. How can you base an opinion on a trial 3 years ago?
We have used leadbay to supplement our customer base for 3 years, converted at over 30% and they had the most transparent refund policy of all. A £1000 spend usually created Circa £12,000 of income, following life sales.
A good company – shame.. Best wishes to all involved at this time of year.
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Anonymous | 22 Dec 2010 2:51 pm
Quote "I believe we will now see a more stable pricing structure, understanding that enquiries from consumers for mortgages are often valuable as future clients, or in other areas such as debt advice or compensation claims for mis-sold products.”
In other words let's peddle any old product the borrower can't afford on the basis that when they're in trouble we'll earn even more money in fees. This statement is a shocking indictment of the broking industry, oh no, sorry, it's all down to the bankers isn't it. No need for the FSA to sort out bad mortgage advice after all.
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P A Clements | 22 Dec 2010 3:07 pm
An excellent company to deal with, you saw what you were getting. we have used them for 3 years now without any problems. I will be sad if they are not taken over and start trading again.
Good Luck to all at Leadbay
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damian | 22 Dec 2010 3:14 pm
Any idea what we can do with the balance we have with Leadbay? I have £500 in my account with them which I was hoping to use this January. I cannot see a refund option on their website and when I ring them it says they are closed!
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David Carter | 22 Dec 2010 3:24 pm
What sad news. I hope that Leadbay can emerge from the ashes - they have been outstanding in terms of the quality of their leads and their refund policy - head and shoulders above their rather tawdry competitors, I would say.
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Robert Kennedy | 22 Dec 2010 3:37 pm
Interesting that Lead Bay Media Services limited was incorporated on 15th November 2010. I wonder what is going to happen next?
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jonny c | 22 Dec 2010 4:12 pm
Hardly surprising.
Buying Mortgage leads is a mugs game as the first poster suggests. Used leadbay before and also had very very poor quality of leads supplied. Won't be missed.
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Anonymous | 22 Dec 2010 4:18 pm
good call Robert Kennedy .... Phoenix anyone?
I guess they have a few debts they'd rather not pay?
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Matt Cottle | 22 Dec 2010 4:32 pm
Interesting that some commentators here have been unable to convert their leads. Its probably more to do with the size of the sample you bought and your internal systems than the quality of lead from Leadbay. This company changed the way leads were bought and sold, raising standards across the lead generation industry. What they brought to the table is commendable and just because they have suffered like all of us, let's not forget their achievements.
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