Why You Should Diversify Your Bankruptcy Lead Sources

Avoiding the “all your eggs in one basket” strategy

Diversifying your lead sources prevents the “putting all your eggs in one basket” strategy.

Putting all of your eggs in one basket when it comes to bankruptcy leads can be a dangerous strategy. What if your lead source performs poorly one month? If you are relying on that one source, you may be in for tough times.

Your marketing strategy should follow the mutual fund model. Mutual funds succeed due to their ability to diversify investments, which averages out the successes and failures of individual investments to maintain overall profitability. The more you diversify your bankruptcy lead sources, the more you can avoid fluctuations from individual sources, use your marketing budget most effectively, and  maintain a more consistent profitability.

As you decide how to generate bankruptcy leads, you may decide to handle some marketing efforts yourself and hire marketing firms to handle other online (SEO, PPC, local directories, website, etc) and offline (radio, TV, direct mail, etc) marketing efforts.

How to diversify your lead sources:

• Research companies that specialize in lead generation for bankruptcy
• Determine the strengths and weaknesses of each company. For example, one company may be stronger at search engine optimization, while another may be better at local directory submissions, and another may be better at pay per click advertising. Also evaluate the companies’ pricing and contract models as well to determine strengths and weaknesses there.
• Determine what marketing to outsource and what marketing to handle in-house.
• Choose several companies to handle the marketing areas that they are best at.
• Allocate an initial marketing budget to each company
• Evaluate marketing performance of each lead source in terms of lead volume, quality, cost per lead, and closed cases.
• Reallocate your budget, discontinue with lead sources that aren’t working, and explore new lead sources to optimize your marketing budget.