Anyone know what car dealership leads pay?

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maximus

maximus

Hard Work Is The Answer
Apr 11, 2007
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LA, Ca
I'm talks with a few large local car dealerships to generate leads for them. They're very interested and willing to pay per lead but I don't know what the going rate is for car purchase leads. I'd collect user info such as name and contact info... pass the leads to the dealerships... and the dealership would call them to close.

Anyone have experience with this and know what a fair rate is per lead?
 


Fair rate is whatever they are willing to pay. I'm currently building a lead generation company, and from what I've found so far, cost per lead can very widely from industry to industry.

One key question is this: Would the leads be exclusive or would you you be selling one conusmers data to multiple dealerships?
 
aim said:
One key question is this: Would the leads be exclusive or would you you be selling one conusmers data to multiple dealerships?
Click to expand...

My thought is to have the leads be exclusive. I have to write up a more formal presentation with details by next week. I'm thinking of starting between $40 - 60 per lead because they'll be geo-targetted and qualified. I've seen similar services in the same industry charge between these rates.

Does that sound reasonable AIM?
 
Dealerships already buy geo-targetted, qualified, exclusive leads in the neighborhood of $10-$25.

If they're completely unfamiliar with Internet leads, you might be able to sell them on this idea. Complete branding of their dealership name from start to finish of the lead-gen process is also worth more money.
 
Someone is right.

There are several lead aggregators out there that already do auto leads, so you'll probably want to stick in the $10-25.00 area; perhaps you can charge more if you can sell them on the idea of the leads being exclusive.

I would also be willing to back up your lead (quality) with a guarantee. Tell them that if they don't get a 5% conversion rate, leads will be free or credited.

Let's say you start off selling leads at $25.00/each. You sell a lot of 10, so you made $250.00. Of that 10, one person converts (for the dealership) netting them $500.00 or whatever the margin is on used cars.

In this scenerio, they spent $1 to make $2 which is very reasonable.

If you sold those leads for less money, you might even sell more of them, so you could end up making more money.

You basically have to find a formula where you are profitable and the dealerships are profitable.
 
Now with something like this.. you're talking finding people looking to purchase a car.. We talking new or used?
Or are leads seperated into what they're looking to spend?
 
aim has it right -- if you want to do this for a long time to come, you need to find a price that they are going to make money too.

Even though most companies do not get it - Lead Generation is supposed to be a Win-Win for both sides (actually for the consumer too).

Our company is in many different industries for lead gen, and it comes down to conversions and what it costs at the end of the day in leads for your customer to generate a new customer. If they close 1 out of 10 leads, and they make $1000 per new customer, you can charge them $99 and they still make money.

Don't get greedy, and keep their goals in mind, and you will have long term customers that always pay their bills (because they want more leads).

GOOD LUCK!
 
dealers are used to paying on average $20/lead from big name companies like edmunds, autousa, kbb etc.. Dealers are also extremely skeptical. Dealers are all also well versed or are using a vendor already for their paid search. I would be very surprised if you could sell them leads for $50+.


I personally have over 100 car dealers as clients so if you need to know more about the industry (internet wise) PM me.
 
or talk directly to the guy who sells the car. the guy who sold me my new GTI told me that if i send him a client he will send me a $100 check :)
 
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