Should You Pay for Leads?

Should You Pay for Leads?

We like to think of social media as free advertising, but is it REALLY???


Sure, there are plenty of sites that let you market your business without charging a monthly fee, but that doesn’t guarantee spectacular results. Anybody who’s ever tried to build a marketing strategy around Facebook knows that organic reach ain’t what it used to be, but does that mean you HAVE to pay to get ahead?


Lots of customers use sites like Angi or HomeAdvisor (which are actually owned by the same company) to connect with local contractors. They do generate new leads for your business- but is it worth the cost? 


Let’s look at some of the potential drawbacks of lead generation services:

 

  • Not All Leads are Good Leads

    When you use a lead generation service, you’re going to pay for every lead, regardless of whether or not it’s qualified. 

    Maybe you specialize in high-end window treatments, but if you get lumped into a generic “window” category, you might get leads for customers who need window washers, or window repairs. That’s not the least bit helpful, and you still have to pay for it! 
     
  • Leads Aren’t Exclusive

    Leads are going to every company that fits the customer’s keyword search, not just you. So, now you’re competing for leads on a site that’s supposed to deliver them directly to you. 

    You’ll have to pull out all the stops to secure new customers, and honestly, you could be doing that on any platform for free! 
     
  • Customers are Limited

    Services like Angi require members to subscribe to access content. And your business has to be “Angi Certified” to be featured - which, of course, costs money.  

    That means that you have a limited number of customers to pull from, AND you’re fighting with your competition to get to them first. That doesn’t seem like a great use of your advertising budget, does it? 
     
  • You May Have to Offer Steep Discounts to Attract Customers

    Angi shows members results in a hierarchy - and the contractors that offer exclusive coupons to Angi members are always featured first. 

    So, not only are you paying to be seen, now you’re eating the costs of a major discount?? Ouch. 
     
  • Contractors Give It Two Thumbs Down

    The reviews say it all. If you peruse BBB reviews of Angi, you’ll see countless complaints from furious contractors. Not to mention all those lawsuits they’re facing for false advertising and unscrupulous business practices…

When you look at the facts, it’s plain to see that you might be better off spending your marketing budget developing content for sites that DON’T charge you and leave you with suspect leads. If you’d like to learn more about developing a social media marketing strategy that’s truly effective, visit https://resonetrics.com/services/social-media-marketing.