The lead generation industry was in the news again recently with a warning to consumers about the risks of giving out their personal information online. In the Jackson Sun article, Randy Hutchinson, the president and CEO of the Better Business Bureau of the Mid-South explains charges brought up by the FTC against two lead generation companies. He first explains how in 2013 the FTC shut down Ideal Financial Solutions for stealing from consumers who provided credit card numbers and bank account access because they thought they were applying for loans. He also touched on a case that was settled in April between the FTC and Gigats, who deceptively advertised job listings yet sold consumer information to financial institutions.
What does this mean for the consumer?
This article follows suit to the recent trend of individuals, businesses and government agencies helping consumers make better decisions online regarding their personal information. Consumers should indeed be smart about the businesses they share personal information with and shouldn't have to choose between getting the service they requested and the rights they're entitled to.
What does this mean for lead generation companies
This article should serve as a good reminder that lead generation businesses built on deceiving consumers are unsustainable and a top target for consumer protection agencies. At boberdoo we have worked with hundreds of lead generation companies that are completely transparent about their businesses and make the extra effort to put the consumer first. However, consumer protection agencies and news outlets don’t spend time on these companies. They spend time on the few that take the shortcut and cheat the consumer. Because of this, lead companies shouldn’t be satisfied if their business simply isn’t deceptive. They should go the extra mile to make sure the consumer journey is as clear and concise as possible. This means that you should only advertise the exact process you practice and provide the consumer with as much detail about those that may contact them as possible. With no leads, there is no lead industry.
The average consumer continues to get smarter and more skeptical about who they share their personal information with each time a story like this is published. Lead generators should see this as a good thing. They should see this as an opportunity to build trust with their consumers and differentiate themselves not by their ability to deceive the consumer, but their ability to help the consumer.
How can lead generation companies do this?
Do what you say and say what you do. Elaborate on your entire process in your marketing material, execute exactly what you promise and provide the information of anyone that may reach out to the lead as soon as they submit the lead. If a lead you generated doesn’t know why they are being contacted by one of your buyers, you’ve done something wrong.