After six weeks of vendor proposals the per-lead math never works
I've been reading vendor proposals for six weeks and I want someone to poke at the arithmetic before I sign anything.
Vendor A prices per delivered lead. $75 for what they call a "qualified motivated seller," defined in their contract as an owner who confirms ownership, states a willingness to consider an offer, and agrees to a callback. No appointment required. Minimum 40 leads a month, so $3,000 floor.
Vendor B prices per seat. $2,400 a month per caller, three seat minimum, so $7,200. They pass through skip trace at cost (quoted $0.07 a record) and I supply or approve the list. Everything they generate is mine and nobody else's.
My own attempt at building the funnel from public numbers: three callers, 8 hour shifts, roughly 100 dials an hour on a multi-line dialer, so about 2,400 dials a day. If contact rate is 4 percent that's 96 live conversations. If 3 percent of conversations produce a lead by Vendor A's definition, that's about 3 a day, call it 60 a month. Under B I'd be paying about $120 a lead plus data. Under A I'd pay $75 but I don't control the definition and I suspect the same lead gets sold sideways.
What I'm unsure about is the 4 percent contact assumption. Every number I find is either a vendor's marketing page or three years old. If contact is really 2 percent the seat model doubles to $240 a lead and A looks cheap even with a soft definition.
The decision in front of me: pay per lead and accept somebody else's definition, or pay for labor and eat the volatility.