According to the universal laws of marketing, you will have a greater success ratio of closing a transaction between you and a prospect if the prospect CAME TO YOU as opposed to you initiating first contact on the prospect.
When you run out of friends and family to talk to about your business, lots of upline leaders in network marketing advocate buying leads as the next resort. I was one of those unlucky people who were suckered into buying leads.
Here is why I frown upon buying leads. Whenever you get a bunch of leads say a list of 150 leads for $100 from a lead broker, you do not know if they are exclusive to you or not. Even if the lead broker says they are, what they could have done is mix up the lead list and present it to each different distributor who buys into them. That is how “exclusive” the list is. Selling leads is how they make their profit. Lead generation companies are in the business of selling you on leads regardless of exclusivity.
The second reason I do not advocate buying leads is that you do not know if that list of leads is fresh or not. I remember a few years ago when I was with a health and wellness company. My “upline” sold me 10,000 leads for $200 dollars. I was so excited that I was getting 10,000 leads. He even went on to install those leads for me in my autoresponder at no extra charge. To me, a newbie, that sounded like a good deal.
Did I get any signups? Of course not! It was because he sold those same leads to other distributors in his downline and collected a profit from me. Needless to say, I did not last very long in his downline since he was out to pad his pockets at my expense. His 10,000 leads were obviously NOT fresh but had been cycled through other distributors he sold them to.
Lack of exclusivity and lack of freshness are the two reasons I do not like buying leads. Every successful businessman always generates his own leads. For that reason, it is better for the network marketer to create his own leads on the internet instead of paying hundreds of dollars to a worthless lead broker.