The lead gen struggle is real.
Finding leads is one of the biggest challenges B2B companies face.
It's easy to see why — discovering the right leads means more sales and more revenue. Finding the wrong leads (or not enough leads) and your business is dead in the water.
This is why a lot of marketers and sales teams turn to purchasing lead lists vs using a lead generation service or software.
The problem with lead lists?
They suck. #notsorry
You are buying a list of leads that may not have consented to be contacted, and they likely have no interest in what you offer.
Even worse, your competitors can get access to the exact same lists.
So lead lists are bad, but what about lead generation services? Are they worth it? Here's what you need to know about lead generation services, why lead generation tools are better than buying leads, and why using a lead generation tool/service like Leadfeeder is key to building a successful sales pipeline.
Note: Want to uncover high-quality leads? Sign up for a free 14-day trial.
How does a lead generation service/software work?
In the case of Leadfeeder, a lead generation service/software is a website visitor tracker that identifies companies who visit your website and provides their contact information. Important point: leads from a lead generation service are warm. Usually, the leads have checked the first box from your list of qualifications — at Leadfeeder, this can be a simple website visit, or you can further filter your ICP in the software to receive only leads further down the funnel. It’s completely customizable to your workflow.
So, what is purchasing a lead list?
Lead lists are bought from companies that gather massive databases of leads from sources like social media, email marketing, content marketing, and list acquisition. They then sell those lists to companies, often making grand promises about how much profit you'll generate.
A few of the most popular lead generation services and databases include companies like Zoom Info, FindThatLead, and Uplead.
The problem with those types of companies? The leads aren’t as warm as advertised.
What are the cons of buying a lead list? On the surface, lead lists sound good — you gain access to a database with thousands of leads, including their contact information, social profiles, and more.
Hey, even if only a handful of those leads pan out, you've likely got your money's worth, right?
There quite a few cons to using those lists that many B2B sales teams aren't aware of, including:
Every competitor has access to the same data
The leads aren't necessarily a good fit for your company
Databases aren't updated often, leading to outdated information
The leads are cold, which are harder to convert
Most charge flat fees, which means you pay even if none of the leads work for your business
Plus, using this type of information just makes you look spammy. No one wants to be the annoying company begging for customers — especially when the leads are chilly.🥶
I don't want to say lead lists never work. Some companies use them successfully. Good for them.
Lead generation vs list purchasing
Lead generation, unlike list purchasing, is all about uncovering companies that are interested in your brand or company. This can be done by offering a download guide, email newsletter, or course.
The problem is, that type of lead generation is time-consuming — which is why some companies turn to list purchasing.
List purchasing dumps thousands of leads in your lap — but there's no indication if those leads are any good.
Instead, brands should focus on lead generation, which helps uncover leads that have already expressed some interest in your company. For example, Leadfeeder's Discover Tool uses a tracking tool to see what companies visit your site and then matches their IP address with our proprietary database of contact information.
Unlike cold lists, Leadfeeder delivers a list of warm leads that already know your company exists. You can also see what pages they viewed, how long they stayed on your site, and what other actions they took. Using Leadfeeder's custom feed filters, you can even sort leads to zero in on the most valuable leads.
No more wasting time on cold leads or outdated database contacts.
List purchase services often require companies to pay by contact, while Leadfeeder only charges you for actual leads on your website. Leadfeeder also gives you the option to filter out companies that aren’t qualified to further narrow it down so that you’re only getting warm leads.
TL;DR: lead generation efforts are more effective and often cheaper than lead generation services that just dump a bunch of info on you.
Need leads? Try a lead generation service.
Unlike buying lists, lead generation services (or software) like Leadfeeder actually uncover leads that have already visited your site. Here's how it works:
You install a piece of code on your website.
That code tracks people who visit your site by looking at their IP addresses.
We use reverse DNS lookup to match that IP address with a specific company.
Once we know what company someone works for, we match that info with our database to tell you more about the company, who you should contact, and give you contact info if we have it.
You can use feed filters to zoom in on the leads you want (such as companies in a specific location or with a certain number of employees), and even eliminate leads that don't fit your ideal customer profile.
The leads you'll get from Leadfeeder are warm leads because they've already expressed interest in your company. Which means you don't have to worry about doing cold calling ever again.
For example, Prescreen.io improved cold call yields by 85 percent using Leadfeeder to see which leads were already interested in their company.
Even better, you can sort and qualify leads with our custom settings, making it easier to zero in on high-value leads.
Leadfeeder uncovers leads that have visited your website
Lead generation companies sell huge databases of contact info; they often don't sort those leads, update their lists regularly, or have any idea if those companies are even aware of your company.
Leadfeeder, on the other hand, delivers a list of companies who have visited your site, so you know they already want what you have to offer. Your sales and marketing teams get the high-value leads and the tools they need to close deals.
Note: Stop sifting through random lists of cold leads. With Leadfeeder, you get access to qualified leads that are actually interested in your company. Sign up for a free 14-day trial today.
Now that you're here
Leadfeeder is a tool that shows you companies that visit your website. Leadfeeder generates new leads, offers insight on your customers and can help you increase your marketing ROI.
If you liked this blog post, you'll probably love Leadfeeder, too.Sign up