Promise Finance has slammed lead generation firms as inconsistent and warns they need to up their game if they are to survive in the industry.
Steve Walker, managing director of Promise Finance, a secured loans and mortgage broker, compared buying leads to cooking a curry – it may taste great the first time you make it but it probably won’t taste the same the second time.
He says: “Some leads are good but most are bad. Lead generation firms tend to supply great leads for the first couple of weeks but then the quality seems to be compromised.”
Although Walker sympathises that no-one can get it right 100% of the time, he warns they must be better if they expect to survive in the industry.
He adds: “Lead generation companies need to target better and work out what brokers want.”
However, Nat Daniels, managing director of Mortgage Angels, says the reason the quality of leads appear to deteriorate over time is down to brokers rather than the companies that originally generated them.
He says: “Lead generation firms don’t start off with good leads and then switch to worse ones – our quality remains the same throughout. The only common denominator in this is brokers.
“Not getting to clients quick enough is the biggest reason the quality of leads deteriorate because every hour their conversion rate goes down. Advisers should remember that.”
Vanessa Blount, head of paaleads.com, says: “In the past unless a broker was using a reputable company or checking the validity of the lead this sort of inconsistency could happen. But today brokers can stop this by checking where the leads are sourced from before committing to buying them, and testing before paying.”