In the last few years, the number of high dollar companies has continued to grow. Global Resorts Network is a good example. These are all great companies, and there is a real purpose in requiring $1,500, $2.500, or even $10,000 to get started in some home businesses. First, their product is simply that expensive. Second, it generally produces a more serious business builder.
Here's the deal... the growth of high dollar companies has resulted in opportunistic lead companies to offer "High Investment Leads."
What is a high investment lead? It is a lead that has filled out an online survey which indicated they have a minimum of $1,000, if not $5,000 to invest in a home business. I'm sure you've seen survey leads that indicated how much start up capital they have to invest. It could be $200, $500, or $1,000. High investment leads filters out all the low numbers, and keeps the top numbers.
It sounds good in theory, and there are many leads companies making money, hand-over-fist, offering these high dollar leads. BUT, there are many flaws that you need to be aware of before you buy them. So, whether you have a regular home based business, MLM, or network marketing business, here are 3 flaws you need to be aware of.
Flaw #1
Have you seen the forms that prospects fill out when they are invetigating a home business? Here is one that we use:
Sample Lead Capture Page
It is somewhat similar to many other companies. You will see that there are several survey questions to answer, and note the survey question about "Money To Invest." There are several options to choose from. While a survey lead is a quality lead, it is only as good as the honesty of the person who is filling it out.
What is to keep a person who has no job and cannot afford to eat out a McDonalds from filling out this form and choosing "$2,000 >" The answer - nothing. It happens all the time. It doesn't mean all survey leads are bad, but when you are paying anywhere from $6.00 to $15.00 per lead, for a high investment lead, how do you know if you are paying for someone who actually has the cash, to an unemployed person. You don't.
It is my estimation that 15-20% of high investment leads are actually dishonest people who don't have the money anyway.
Flaw #2
Not everyone who has money lets you know they have money. I fall into this category. I don't care who it is, if someone asks me how much money I have to put down on a car, invest in a business, donate to a charity, etc., I never let someone know up front, especially until I have investigated things in depth. Before I reveal my hand, I want to investigate things more, and find out more about who I am working with, the product, the opportunity, the cause, etc.
In fact, I think this is quite often the case with quite a few people. People who have been burned in the past, people who have higher levels of education and/or business expereience, people who simply want to guard against full-disclosure up front.
So, what does this mean? People who may actually have the money may only indicate they have $500 to invest in order to approach things more cautiously. So, by only buying high investment leads, you're missing out on a bunch of people who actually have money, but don't disclose all their information up front until they have investigated you and your business.
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People choose the first or last answer much of the time. This is just a fact. You've filled out surveys in the past, or you've taken a college course and filled out the evaluation at the end of the semester. What do many people do? They just go down the sheet and check the first answer in the column, or they choose the last answer in the column. It's easier that way.
Now, some people take it more seriously and complete things with careful thought, but you need to be aware that not everyone who has filled out a survey form
When people are filling out a survey form, the majority of the answers are either the first or the last answer. There are still many in the middle, but it is human nature to take the lazy way out.
So, what does this mean? It's similar to before... you're either missing leads who have the money because they chose the first answer, or you're getting a lead who actually has little money because they chose the last item.
My Conclusion
If you buy high investment leads you will ultimately speak with people who have money, but a large percentage of the leads are going to fall into one of the 3 categories I mentioned above.
Here's another issue. It may be trite, but it's still true. If a person believes in what you have, they have captured the vision, and they want to join your business, they will find the money some way, some how. So, just because someone says in an online survey they do or don't have enough money to invest, in my opinion, that is irrelevant. Why?
Because the prospect simply doesn't have enough information yet to where they are going to part with their money. To judge someone based on a survey before they have had the chance to investigate and see the opportunity is something we are taught not to do in the very beginning of Home Business 101.
In my opinion, you would be better off purchasing regular home business leads and taking with a grain of salt the answer they gave for how much capital they have to invest in a home business. What is probably more important is their Reason for wanting a home business.
So, why doesn't National-Leads.com sell high investment leads? Well, for the 3 reasons above, and from a practical point too – we don't want to deal with angry customers who paid $10.00 for a lead, but the prospect doesn't have two dimes to rub together. There are better ways to spend your money.
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About The Author: Rich Niccolls has been helping networkers with leads for over ten years. He has put together a 5-Day Email Mini Course on success with home business leads. You can sign up for FREE at: MLM Leads Training |
