The Perils of Incentivised Leads

June 26, 2010 by  Filed under: Sales 

When shopping around for a lead generation company, it’s important to keep in mind that not all companies are procuring their information in a way that will best benefit you and your business. Some companies may be providing big numbers, but if they’re supplying you with “incentivised leads” you may find you have a much more difficult time turning those leads into sales.

Incentivised leads are gathered when a company offers prizes in return for someone’s information, like when people fill out forms to win a free laptop, iPod or gaming system. The respondent fills out a form to be entered into a draw to win one of these prizes, and that information is then sold off as a lead.

Information gathered from these forms can include questions about a respondent’s annual income, age, occupation, etc. and the leads are then filtered according to the answers provided. The first reason not to rely on these types of leads is because often respondents may offer bogus information that will then filter them into the category of “interested buyer” even if they are not in the market for insurance. Many people keep separate email accounts for such offers, and provide aliases and false contact numbers to protect themselves. Thus, when you purchase these kinds of leads, you’re already guaranteed a much smaller chance of actually speaking to a real person than if you were buying leads without the incentive involved.

Another problem with this type of lead is that when an insurance agent then contacts the respondent, they will generally show little to no interest in the actual sales pitch. They entered to win a prize, period, and now coupled with the disappointment of not winning a prize, they also have someone (and possibly a number of people) trying to sell them something they were never interested in purchasing in the first place. This is obviously a recipe for disaster.

With a little due diligence, you should be able to avoid companies that market in this way. Often they are new to the game and just starting out, trying to build up their roster with a large amount of low-quality leads instead of focusing on marketing to people who would actually be interested in your business.

However, keep in mind that sometimes when a company is marketing through multiple channels this situation can occur because the company receives this information through an unscrupulous third party. Any company worth its salt will rectify this situation immediately and cut off the offending channel of information, so it’s important to keep in contact with your providers to let them know if one of these false leads has been sold to you, to give them a chance to make things right.

To avoid this misstep, look for established companies with solid reputations who will know better than to fall into the incentivised lead trap. Companies that have been build on a solid foundation will have the marketing and business acumen behind them to gather their information correctly. provides the health insurance industry with fresh health insurance leads. Set up your account and get 10 free insurance leads from your state.

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