5 Reasons to Stop Buying Leads & Start Generating Your Own
When it comes to generating leads, a common mistake we see many dealerships make is investing money in external lead sources, such as Third Party Lead Providers. The outcome? A crippling dependency that wastes money and generates poor results.
Why Dealers Must Own the Online Consumer Relationship
Third Party Lead Providers work very hard to build relationships with online car shoppers. They create highly functional websites that are well optimized to attract online consumers. They then provide sophisticated online tools that help car shoppers evaluate their options and at the same time position themselves as a source of objective opinions, providing a sense of trust and confidence. While on these sites, online consumers are profiled, their personal information is collected, and it’s then packaged as a lead and sold to multiple Dealers in the same market.
Third Party Lead providers have positioned themselves as the brokers of online car shoppers. This brokering process comes with a very high price to Dealerships in the form of :
- Lost customer relationships
- Unreasonable customer expectations
- Diminished control of the negotiation process
- Low or NO profit margins
- Lost deals
- High cost of leads that are almost always sold to multiple dealers
Dealers must take back the online consumer relationship. Dealers have spent thousands and thousands of dollars over many years, sometimes generations, building their businesses and they should have direct access to their local online customers. Unfortunately, Third Party Lead providers have taken control of this relationship, almost completely eliminating the Dealers’ profit margin in the process. Third Party Lead Providers have turned online car buying into a commodity, diminishing the value Dealerships provide to their customers, while siphoning millions of dollars of profits out of the industry.
Your Competitive Advantage is Your Online Presence
Advanced Dealer Systems encourages Dealers to fight back and take their rightful position in the search engine results page! Dealers should stop being held hostage by Third Party Lead provides, take back their online customer relationships and create their own high quality, exclusive Internet leads!
What many dealerships don’t understand is they can now generate and harvest their own leads by taking control of their web presence and creating lead generation opportunities that align with their business goals. By generating their own leads, they’d be taking advantage of five key benefits :
Reason 1 Exclusive:
All semi-exclusive Third Party leads are sold an average of three times, and they are sold directly to your competitors. What is worse is that many of these leads were intended for you in the first place and the Third Party Lead Provider has intercepted and captured these leads right under your noses. Doing business with a Third Party Lead Provider is a little like allowing them to stand in your showroom and woo your prospects to your competition (see reason 5).
Reason 2 Savings:
By implementing your own lead generation processes, you’ll save a lot of money because rather than buying leads, you’ll be generating leads organically. Research has consistently shown that companies focusing on inbound lead generation experience a 62% lower cost-per-lead than companies that use outbound tactics for lead generation. These are your leads alone, you harvested them yourself. No more price wars with your competition, and no more dropping your pants just to give a car away in the end.
Reason 3 Quality:
Because you will be able to tailor your lead generation activities to attract the exact type of prospects you’re seeking for the brands and models you sell, the leads you generate will be of much higher quality (shoppers versus buyers). Higher quality leads equals a better lead-to-customer conversion rate! You’re just going to close more deals and sell more cars.
Reason 4 Control:
In order to eliminate your reliance on buying leads, you would be taking control, both in terms of your website and your business’ lead generation activities. Ultimately, by nixing your dependency on paid leads from Third Party Lead Providers and taking lead generation into your own hands, you’re taking control of your dealership’s destiny. Your lead generating websites are like real estate online. You’re building an online spider web that captures fresh leads month after month. Instead of giving 3rd party lead providers money to build their spider webs online, you are investing in your future and growing your spider webs. This strategy just makes more business sense. Plain and simple !
Reason 5 Interception:
Many of the leads you are purchasing from the Third Party Lead Providers were essentially destined to be your leads in the first place before the Third Party Lead Providers intercepted them. The entire objective of these lead brokers is to push down your ranking and destroy your web presence. This way they can capture the information from interested buyers that were originally intended for you and then sell this information to you and your competition. We will stop them in their tracks and turn the tables in your favor. You will now be pushing them off the 1st page and claiming what is rightfully yours … AGAIN, this just makes more sense.
Dealerships are starting to realize the value in managing their own lead generation efforts. Many Hyundai Dealers in the Southwest Region are a prime example of dealerships that have transformed their business by eliminating dependency on Third Party Lead Providers. They instead have used Advanced Dealer Systems’ lead generation techniques to start performing in-house lead generation. Spending $25 per lead on external lead providers and having no control of its web presence led to poor lead quality, low conversions, and minimal sales. Hyundai Motors Corporation knew it was time to make a change.
As a result of using Advanced Dealer Systems’ methodology, Hyundai Motors took back control of its own web presence with multiple websites to capture leads. Hyundai Motors quadrupled traffic, generated an impressive 45% conversion rate with higher quality leads, and reduced lead costs from $25 per lead to less than $4 per conversion.
If your dealership currently depends on Third Party Leads, it is time to make a change. Take control of your web presence and get situated in our Lead Generation System. This enables you to generate your own exclusive leads, and take control of your destiny online.
We guarantee you will see some impressive results — and your marketing budget will be eternally grateful. Build your future online …. Not the future for a 3rd party lead provider whose strategy is to steal your leads before they get to you.