Lead Generation Company

[msquared48]

I was contacted by a rep of a marketing company this morning after checking out their website over the weekend. Apparently they are a lead generation company. You end up paying a small fee for each lead after paying a once a year membership fee anyone have any experience with this type of company they wish to share?

Mike McCann, PE, SE (WA)

 

[btrueblood]

What would you do with all of that lead - start casting fishing sinkers?

 

[KENAT]

While I had similar thoughts btrue (was going to suggest looking at thread404-390342) I don't think that's the kind of lead he's talking about.

Posting guidelines faq731-376

http://eng-tips.com/market.cfm?

(probably not aimed specifically at you)
What is Engineering anyway: faq1088-1484​

 

[msquared48]

You guys are fishing. That is what marketing is all about - getting enough work so you can go fishing.

Mike McCann, PE, SE (WA)

 

[TehMightyEngineer]

Seems like an EPA hazard to me...

Sounds like this would be good for a startup firm but I have no experience there. I guess as long as they're honest and bring in work it could be worth it. How small of a fee are we talking about here? Do they allow a trial period?

Maine Professional and Structural Engineer.

 

[msquared48]

Unfortunately, no trial period here - like 400 smackers just to open the gate and 20 per lead after that.

Mike McCann, PE, SE (WA)

 

[Ron]

Not worth it Mike....you'll get leads that mean nothing to you, but will satisfy their requirement to provide them to you. They might be good for contractors, but have limited value for us as consultants. A lot of the true engineering leads are also those that require a larger firm to get in the door. A one-man show doesn't usually get invited to those parties.

 

[MacGyverS2000]

Sounds like an excellent way to make money... for them.

What guarantees do you have they will get you ANY leads? $400 for them to not find you anything is an awful waste of your resources. And what if they DO bring you leads... are they worthwhile? $400 + ($20 x some number of worthless leads) = a LOT of money thrown away. Finding you a guy who wants to build the Taj Mahal in his back yard is a lead... a worthless one, but a lead... and it'll only cost you $20.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[Triangled]

I'd say depends upon how clearly you can define, in terms intelligible and useable to your marketer, what a "lead" with some value to you, is. Obviously not just any old construction project or just any old engineering project. An old associate, familiar with certain engineering niche markets, created a nice little marketing enterprise years ago that brought value to several engineers I know.

 

[MartinLe]

Where do they get these leads? What do hey do that you could not do yourself? How do you get your leads, and what quality are those? (No strict need to disclose this here, but I think you should ask this yourself)

did I understand this correct, it'S 400 and 20 $ and no missing trailing zeros? What can they do for this kind of money - operate some web-scrubber, and spam every "lead" towards everyone remotely resembling an engineer on the same continent.

Note that they don't have an incentive to filter leads, which can be as important has having some in the first place. For you, an agreement with a sales comission would be more transparent.

 

[MacGyverS2000]

On the targeted marketing front... imagine how many clients you'd lose after being associated with spam...

Dan - Owner

http://www.Hi-TecDesigns.com

 

[IRstuff]

seems to me that they should be able to steer you to existing and happy customers.

TTFN
faq731-376

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Of course I can. I can do anything. I can do absolutely anything. I'm an expert!
There is a homework forum hosted by engineering.com:

http://www.engineering.com/AskForum/aff/32.aspx

 

[BrianPetersen]

... who they may be paying off in order to say nice things about them.

Useless. All that is needed to fulfill their obligations is for them to open the phone book, record the first 20 mumbers or 20 randomly-selected numbers, send those to you this month, send you another 20 random numbers next month, etc.

What are you going to do with those references after they give them to you? Cold-call them? Useless exercise in frustration.

You might as well go fishing ... it will be just as productive. Maybe more, if you catch something.

 

[msquared48]

Thanks for the insight. Seems like very small jobs, but a lot of them. The thing I do not like is paying for the leads whether you get the bid or not. Supposedly, each lead is passed on to only one or two other engineers in your area, but how could you verify that other than asking the prospective clients?

Mike McCann, PE, SE (WA)

 

[Ron]

Mike....they send them to everyone! I have a free lead service that sends stuff to me. I have not signed up for the paid part. They send a lead about every two days....I've seen maybe 2 in the past year that I would even think of pursuing, simply because they don't apply to "us".....small practitioners with limited resources.

 

[Triangled]

"very small jobs, but a lot of them"
This scenario, to me, seems good for business, assuming the they are the kind of small jobs that you're set up for and happy to turn around quickly. But lots of jobs with lots of clients presents a mixed bag in my mind as each client necessitates its own pre-qualification. I feel more secure with 200 jobs from 20 clients to 'turn the nut' annually, than with 20 jobs from 2 clients , or far worse, 2 jobs from 2 clients ...aaaaack!

"paying for the leads whether you get the bid or not", yup, no bueno. But, I'd suppose you'd be happy to pay substantially more than $20 if you got the job, so, there is some value there, and, after all, you were on their website first. But here's the thing I've found, it's not so much the getting job that is valuable as is getting the client. Getting the job, is just a step toward getting the client. But, then, once you have the client, why do you need the marketer? And this, of course, is their fear.

"Supposedly", yuck, very no bueno, "each lead is passed on to only one or two other engineers in your area"

"but how could you verify that other than asking the prospective clients?"
Yup, I sense lots of distrust here on both sides, certainly understandably and importantly on your side, but also on their side. Sounds likes they are selling an internet algorithm which they realize you could blow through with some effort; and, I'm sorry, although I really liked Ex Machina (like really really), I wouldn't trust her with my marketing,
yet.

 

[StrucPatholgst]

I used a lead service about 7-8 years ago, for about 12 months. It produced some work, but nothing remotely close to the volume I built through networking and just plain old doing a good job.