Many companies wonder whether buying leads – that is, B2B data sets – is actually a recommended way to increase sales or whether they are just harming themselves. An answer to this question is not that easy to find.
The lead purchase is one of the numerous ways to generate new leads in a short period. However, what is certain is that for business success, it is necessary to build up an extensive database of your own with potential customers and contacts.
Why buying leads is a mistake is illustrated by the disadvantages that come with it. The following article explains what these are and whether there are any advantages to buying leads.
Reasons To Buy Leads
Buying leads is a very effortless way to expand your list of prospects in one fell swoop. However, before making the final decision to buy leads, a few questions should be answered.
These include, for example, what expectations exist of the leads bought, how many leads are required, and how up-to-date and detailed the data record must be. After the answers to these questions have been found, it is also necessary to check whether the respective data record and the provider can meet all requirements.
Pros And Cons Of Buying Leads
The main advantage of buying leads is that it can save a lot of time. In addition, if a reputable provider is selected, the lead purchase can be a good source of detailed and extensive data sets. It is also possible to make the calculation based on a fixed lead price.
In any case, however, the severe disadvantages involved in buying leads must also be considered. One of these is, for example, that a lead list is usually associated with high costs. Often, additional research work has to be carried out independently, which means that the high prices per lead are not worthwhile in the end. In addition, no exclusivity is guaranteed. There is, therefore, a risk that a direct competitor will have precisely the same data set.
The providers of the leads often sell the data sets several times. However, it should be noted that even exclusive leads are no guarantee of a successful deal. The result always depends on what information is available and what is ultimately made of it.
GDPR – Be Careful When Buying Databases
However, other dangerous pitfalls lie in waiting for companies to purchase lead generation databases. These mainly concern the requirements of the GDPR, the General Data Protection Regulation. It is essential that the companies know the exact legal situation and carefully assess the associated risks with the lead purchase.
The EU’s uniform GDPR, which regulates the handling and processing of personal data, has been in force since 2018. In principle, it is permitted under the DGSVO to acquire company addresses and use them for marketing purposes, but some laws must be taken into account. If this cannot be guaranteed, you should generally refrain from buying leads anyway, which entails too high risks.