If your business involves selling business loans, you must be aware that leads are your firm’s lifeline. Without them, you’ll not have anyone to sell your products to. But leads are not the same. There are exclusive leads, which are sold to one person only, and shared leads, sold to more than one firm. Between the two, it’s important to know which one gives a favourable return on investment (ROI).

In this guide, we break down the comparison to help you decide on the best option for your business.

Business Loan Leads

A lead is a business owner looking for funds to support their enterprise. They are in need and have visited online spaces searching for firms like yours that lend money to businesses. Usually, they use phrases like “business loans nearby” to find such firms.

Subsequently, they fill out a form and provide information about their businesses, including name, phone number, email, amount, years in operation, and location. They are leads because they need money right now. Usually, lead companies post these ads on the internet, on social media, and on website landing pages.

Exclusive Leads

These are sold only to you, and no other lenders have access to the business owner’s data. This means you’ll be the only one calling them. The price per lead is higher and may also depend on the size of the loan. The information is gathered in real time, and therefore, you need to call the person as soon as you get their details.

The ROI for business loan leads is higher since you’ll be the only one reaching out to the potential borrower, and the probability of conversion is higher. When you contact them, listen to their problem and guide them through the next steps. Don’t rush the call. Instead, build trust and enhance the chance of conversion. You’ll save time, and you could double the money you paid for the lead.

Shared Leads Explained

These are sold to many lenders at the same time. The price per lead is lower compared to exclusive ones. However, this lead will be available to many other lenders, and therefore, the one who calls first will have a chance to close the lead. Because of the competition, the business owner might get irritated and refuse to answer more calls. Also, they may only respond to the first caller, and if you’re late, you’ll miss the chance to close the deal.

Which Gives a Lower Return

Exclusive leads cost more, but the time spent converting them is lower. For instance, you may buy 50 leads and convert 40 of them. The high conversion rate means that you’ll spend less time convincing the exclusive business loan leads to borrow money from your firm.

For shared leads, although the cost of acquisition is lower, you’ll waste a lot of time calling and closing a few of them. Therefore, your return on investment may be lower. The hidden costs are what make them have lower returns. For example, to close 5 leads, you may need a list of 200 leads. It can take time calling the entire list, only to have a few people convert. The rejection adds to frustration and loss of team morale.

Comparing the two, you can see that the profit per hour is higher for exclusive leads than shared leads. Nonetheless, it comes down to building lasting relationships, which is good for the growth of your lending business.

Maximizing ROI on Both

Depending on your choice, you can optimize returns and improve conversion. Firstly, upon receiving the list of exclusive or shared leads, you need to call quickly. Don’t wait long to contact the prospects. Call them in real-time since their need is urgent. Track the numbers and know how much you are spending per lead.

Check the time spent and calculate the closing rate. When onboarding a new lead’s provider, buy a small batch before you commit to a large list. After each call, follow up and contact them later in the week. Ask the provider how they verify the original data. It’s important to know whether you’re dealing with serious business owners seeking funds.

Final Thoughts

Exclusive leads are more costly to acquire, but you’ll spend less time converting them. They are a good investment since you’ll close many deals per hour or day. Furthermore, your staff will feel motivated. On the other hand, shared leads cost less, but you’ll spend a lot of time and effort closing deals. At the end of the day, you want an investment that brings quick returns in a short period.