How Is the Price of Leads Determined

One of the most common questions that we are asked is, “How is the price of the lead determined?”

The price of a lead will depend on a number of factors, including state, volume, and most importantly, quality of leads. We have to negotiate deals with different insurance companies and agents in each state. We always try to get the highest price possible, but if we don’t have a high enough volume in a certain state, the price companies are willing to pay is lower. As we build our network in each state, we will be able to get a higher price per lead.

The type of leads also affects the price. For instance, most companies are willing to pay a higher price for a lead who is a home owner and has a clean driving record than for someone who has multiple DUIs. Some companies will only buy certain types of leads, while others will buy any lead we send them. As a result, we may to find multiple buyers per state to make sure everyone who calls your number gets connected to a person who can quote them. Each buyer may negotiate a different price.

But the biggest factor in determining how much we can get per lead is the quality of leads we send in. If we keep sending someone bad leads, they will eventually cut us off or will want to renegotiate to lower the price they are paying. We are more interested in quality leads than in quantity because we want to prove to the industry that Live Leads are the future of leads. We have already seen that companies close more Live Leads and keep them on the books longer than they do with standard internet leads. As the quality of our leads improves, we will be able to renegotiate our prices and you will make more money. Please remember, the more we can sell your leads for, the more money you will make. This is the reason we have established a two step quality control procedure. Lead quality is not just checked by a computer, but we also have someone listen to the calls to make sure they are a Qualified Lead. The two step process assures agents and insurance companies that they will only have to pay for quality leads. For more information on what makes a Qualified Lead, please read our previous article on Qualified Leads.