Doug DavidoffI was asked today about whether I wanted to participate in a “leads group.” For those of you that don’t know what a leads group is, it is typically a group of people who promise to exchange prospects with each other. There are a number of groups that do this, and some people certainly get business from it. I hadn’t thought about leads groups in quite some time, so I was surprised when I was asked.
It got me thinking – Do I want to participate in a leads group? Are leads groups even a good idea? I answered ‘no’ to both. As a matter of fact, the entire premise of a leads group bothers me. It’s a remnant of the industrial age and it’s time that we end the practice. Why?
The entire foundation of a leads group is flawed. It’s based on an old fashioned quid pro quo, I’ll-scratch-your-back-if-you-scratch-mine philosophy. It’s artificial, manufactured and manipulative word-of-mouth. To be in a leads group, you must (emphasis on must) gives leads to other salespeople. If you don’t, you get kicked out. Entering into that type of arrangement violates the trust a professional salesperson should have with his/her clients. The idea that a salesperson that I work with may be trading my time for their benefit bothers me.
I’ve said it before, and I’ll say it again and again -- word-of-mouth is the best form of marketing out there, as long as it is sincere. Sincere word-of-mouth is a selfless act. It is done with the customer’s interests at heart, not the salesperson’s or those of someone in a leads group.
If you are in a leads group, you may be taking issue with this post. You may say, as my friend did, that “We only give a lead if it is in the interest of the buyer.” I don’t buy it. I believe that you may actually feel that giving my name to someone in your group is in my best interest. And I believe that you may not consciously intend to trade on my trust and goodwill to meet your lead quota. Protest if you will, but the fact is this trading of names is precisely why these groups exist.
Frankly, I think a leads group is more about creating the illusion of doing something productive than it is about doing something productive. Instead of ‘trading’ referrals, why not go out and do something that is so great that people feel compelled to talk about it? Who knows, doing that may give you more leads than you can handle.