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Leadbay ceases trading

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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Comments
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  • Wesley 5th January 2011 at 8:34 pm

    Leadbay’s leads have been pathetic as far as I’m concerned. I had a 0% conversion rate from them and their refund policies while seemingly the best available are not properly executed.

    What a lovely feeling to pay £30 for a remortage lead and have the phone put down on you when introducing yourself. No thank you!

  • Ian Southgate 5th January 2011 at 2:22 pm

    I have about £87 lost in Leadbay. Went onto the site today. Why are people still bidding for leads??????

  • Allan Smith 5th January 2011 at 10:43 am

    Sorry to see Leadbay go to be honest. There leads were very hit or miss although their telephone generated life leads were in general excellent value.

    Sorry to see them go as I am very keen to avoid PAA and their rip off leads!

  • Kachagoogoo 4th January 2011 at 12:48 pm

    Worst leads we ever purchased however the refund policy was not too bad. Conerted at 8%

  • Bill Malloy 3rd January 2011 at 2:07 pm

    I have used Leadbay for several years, particularly in the last two years, and have generated a lot of good business from the leads purchased. The quality of their leads and their refund policy was light years ahead of any of the other lead generation companies.

  • Matt 26th December 2010 at 12:36 am

    Leadbay was a great company to deal with. We bought leads of them and grown our business quite successfully at the back of the leads. Leadbay you will be missed. I hope it emerges from the ashes. Good luck to all the staff.

  • Paul Mullen 24th December 2010 at 1:40 pm

    Good Luck to everyone at Leadbay who have lost their jobs.

  • Richard Theo 24th December 2010 at 11:09 am

    This will be the first of a succession of lead generators going bust. Our statistics are showing that more and more consumers are getting aware of the difference between lead generator sites that don’t provide a useful online service and true price comparison sites like ours http://www.activequote.com where they get a useful service and are prepared to give their details

  • Robert Kennedy 23rd December 2010 at 4:59 pm

    Those with money sat in leadbay, kiss goodbye to it.
    When an administrator is appointed you will have to register proof of your debt and if there is any money in the pot you will be paid a pro rata amount as a creditor. Boys don’t hold your breath.

  • Jamie 23rd December 2010 at 1:52 pm

    Need a like button for the last comment!

  • Peter Williams 23rd December 2010 at 1:11 pm

    “Buying leads is a mugs game!?!?!?!”

    You have in the past or are obviously buying them from the wrong place! we have grown our company from 2 people to 25 over the past 3 years and all off the back of buying internet leads.

  • Bailey24 23rd December 2010 at 11:46 am

    Pheonix?!! good call i think.

    Is it any surprise though that Leadbay recently took on a Director of Carrington Carr – Dave Fuher. That influence would obviously be a negative and would mean something shifty was going on!!!

  • Mike Davies 23rd December 2010 at 11:27 am

    I worked with Leadbay for a while as Compliance Officer, back in the heady days of 2006/7. I was proud to work with them as they were an extremely ethical group who spent a lot of time ensuring the customer proposition was right. Lead generation is not a regulated activity but I was used to ensure that they still embraced the concept of TCF. I wonder how many people also know of the charitable work in Africa undertaken by the firm, its directors and staff?

  • David Crossman 23rd December 2010 at 11:11 am

    Here’s a cynical view; whoever buys the assets of Leadbay gets one of the biggest mortgage databases available…to then pursue advice related claims…watch out anyone with Leadbay originated business on your books…I anticipate your clients will be getting a call from a claims company not too distantly related to Leadbay!!

  • Justin Rees, LeadPoint UK 23rd December 2010 at 10:39 am

    It is indeed a sad day for Leadbay and I wish them well in the future.

    At LeadPoint we are offering up to £1,000 for any brokers that have lost money with Leadbay.

    For full details please give us a call or see the story on the home page of Mortgage Strategy.

  • Gary 23rd December 2010 at 9:40 am

    Like Damian I have money in Leadbay, would really appreciate anyone telling me how to get the money out.Not good when they don’t even answer the phone!

  • Rhinotelemarketing 23rd December 2010 at 8:59 am

    We got out of the mortgage lead business in summer of 2007. It was the best move we ever made. we now provide just b2b leads less head ache and happy clients. see us at http://rhinotelemarketing.com

  • chris gardner 22nd December 2010 at 10:07 pm

    what a shame for the staff – especially at this time of year. good luck to them all.

    As for leadbay and the leads industry – as margins on FS get compressed and consumers get more savvy, businesses like these face tough challenges as the economics of buying leads come under pressure.

    consumers shopping on the net are much more likely to give up their details to several sites and as such the same leads are out there in the market meaning conversion rates will fall. Add to that the lack of competition between lenders and dual pricing – meaning conversion rates fall further, i find it hard to see how lead businesses can be viable and sustainable.

  • Roger Pettitt 22nd December 2010 at 9:28 pm

    Stopped using them long time ago when I paid £80 for a adverse lead went to see the guy who was Un-employed!!!.
    asked them for a credit.they said no as work was not a question on their enquire data.
    Anybody heard of a lender doing UB40 mortgages…..good riddence

  • curious 22nd December 2010 at 8:44 pm

    How many leads and what are the prices?

  • Stuart Mcminn 22nd December 2010 at 7:03 pm

    We are a national buyer of remo leads. Any affiliates who can supply please email me at info @ freshfinancegroup . Com

  • Lee Birkett 22nd December 2010 at 6:17 pm

    Hi Anonymous 4.34 p.m.

    We have an exclusive affiliate agreement with Online Media Group who act as a trusted gateway to our TrumpoMatrix (PPT)pay per transaction platform.

    We are due to go live with Mortgages in January 2011. The contact there is Nick Mcglish and their website is http://www.omgpm.com

    Kind regards

    Lee Birkett
    CEO
    TrumpoMatrix.com

  • Gareth E K Smith 22nd December 2010 at 5:53 pm

    My wife had the call, do you have a mortgage? are you interested in saving money? and similar questions.

    Then I got a call we believe you are interested in a re-mortgage.

    The sad thing is someone will have paid for that lead.

    Good brokers with a decent pitch and good reputation will allways do well from the one man to the large operation. I wonder if the likes of L&C buy leads.

  • John Andrews 22nd December 2010 at 5:31 pm

    Who in there right mind would have £500 sitting in their Leadbay account in this current climate?? Way too risky, its madness.

  • I hate Internet leads 22nd December 2010 at 5:19 pm

    The biggest issues I have with all of these lead generation companies is that they sell on the ‘leads’, however, it is direct deals (for both mortgages ad insurance) that seem to get the most screen space, which more often than not ends up you paying for a lead for someone who wants the post office or HSBC deal and are not prepared to pay a fee for it as they know they can get it themselves.

    The other major problem is this, ‘if you can’t contact them its still a lead’ and Justin Rees and the like, can say you should be calling 4 times a day for 4 or 5 days, but he clearly does not live in the real world as that becomes harassment. If someone I didn’t know and possibly didn’t expect to call me tried 16 times in 4 days I would report them to the relevant authority.

  • Simon Baker 22nd December 2010 at 5:18 pm

    Those of you that remember the early days of Leadbay will know what an innovation in the marketplace Leadbay was. Prior to Leadbay there was one seller of mortgage leads (PAA) and they had some very restrictive practises. Leadbay broght competition and a route for brokers to grow their business very quickly. The model worked very well for some and not so well for others. The fact that 2 million mortgage leads were sold must mean there is some merit to the business model. I worked mainly on the affiliate side and know that Leadbay will be missed by many good affiliates too.

    Please spare a thought for the remaining 15 or so staff who were all made redundant yesterday. I know that some brokers will have lost money due to this as will some affiliates but hopefully when you look over the 6 years Leadbay was trading for you will have made a profit.

  • David 22nd December 2010 at 4:34 pm

    We were supplying them with a few leads. Any ideas who else is in the market for buying them?

    thanks

  • Matt Cottle 22nd December 2010 at 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.

  • Rob Jones 22nd December 2010 at 4:18 pm

    good call Robert Kennedy …. Phoenix anyone?

    I guess they have a few debts they’d rather not pay?

  • jonny c 22nd December 2010 at 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.

  • Robert Kennedy 22nd December 2010 at 3:37 pm

    Interesting that Lead Bay Media Services limited was incorporated on 15th November 2010. I wonder what is going to happen next?

  • David Carter 22nd December 2010 at 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.

  • Craig 22nd December 2010 at 3:24 pm

    good luck getting your money back, staff arent even being paid for December.

  • R Fee 22nd December 2010 at 3:20 pm

    Assuming they went bust because of a lack of customers or lack of cashflow or both lets hope this is sends a message to the remaining lead providers out there and any new entrants – you can’t get away with flogging any old crap to brokers forever no matter how cheap it is!. Leads for under a tenner were all well and good, but if they were uncontactable or as was more common “all I wanted was an online quote innit bruv” they may as well have been free !

    I feel sorry for those who have found out they may be out of a job this close to Christmas, but hopefully this will send a message to those Lead providers left in the market that if the quality of their product doesn’t improve brokers won’t spend their hard earned money on it.

  • damian 22nd December 2010 at 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!

  • damian 22nd December 2010 at 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!

  • P A Clements 22nd December 2010 at 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

  • Paul Clunes 22nd December 2010 at 2:51 pm

    I agree with Anonymous no.1. I found Leadbay leads to be a waste of my time and money. I presume that Anonymous no.2 works for Leadbay or its PR agency….

  • Mike Hanson 22nd December 2010 at 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.

  • Chris B 22nd December 2010 at 2:45 pm

    Anonymous 2.28pm

    Ever heard of cold calling regs?
    and then an admission?

    Happy Christmas
    Chris B

  • Rob 22nd December 2010 at 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.

  • valleyboy 22nd December 2010 at 2:33 pm

    Good Riddance to them, i now hope the likes of FLO/PAA/LEADPOINT follow suite and go bust, they have all been ripping off us brokers for far to long. I hope that Leadbay doesnt get a new buyer.

  • anon 22nd December 2010 at 2:29 pm

    firstly i feel sorry for those losing their jobs. I wish them the best in finding new work.

    To the company – good ridance, lead generators are doing nothing more than poncing off the client, and the broker. Google , for most mortgage key words, is full of quasi mortgage firms pretending to be brokers who are actually lead sellers.

    Good ridance leadbay

  • John TIdswell 22nd December 2010 at 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.