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What Is a Lead Broker?

A lead broker is an organization that link buyers and sellers by providing the means to exchange lead data, which is employed to generate an interested buyer’s interest, and then manage that individual’s contact details to sell productively. Lead brokers may be called ‘Sweepstakes leads brokerage’ or ‘Source’ because the lead buyer needs to provide their name and contact details to the lead broker in order to proceed with the lead buy. Once the information provided by the lead broker is verified, the lead broker passes it on to companies that specialize in buying leads. These companies then buy the leads from the lead broker and use these leads for various marketing functions, such as direct mail and telemarketing.

The concept of offering leads to interested parties has been around for a long time and ‘lead generation through a broker’ is just another twist on this popular idea. Most investors and businesses have moved past the concept of ‘pure’ leads in recent years and prefer a mix of lead sources to provide them with qualified prospects. It makes more sense for them to purchase from several lead brokers, rather than one. They can select the opportunities for leads that best fit their budget, marketing plan, and targeted markets. Many lead generating companies have developed advanced lead generating software which can now be accessed by the general public, giving them access to qualified lead lists of buyers and sellers that can help them achieve their goals. Many brokers, though, still offer their own proprietary sources of leads, and some specialty firms even offer exclusively to marketers and business owners the opportunity to purchase their leads.

The concept of lead generation companies selling leads to brokers is nothing new. In fact, in some circles, it is still considered to be ethical, although most states have outlawed the sale of lead generation lists. Lead generation companies, lead brokers, and lead generating software all offer qualified opportunities to buyers or sellers. Some are industry-specific; others may be designed to target particular types of business such as real estate brokers, doctors, and accountants. Whatever the focus of the leads that they sell, it is important to remember that they are acquired at a cost and the buyer or seller must be comfortable with the terms of the contract before agreeing to purchase a lead.

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