B2B lead list scams are rampant, costing businesses time and money. Learn how to identify and avoid these pitfalls to improve lead quality.
B2B lead list scams are costing businesses thousands of dollars and countless hours. Fake leads, outdated contact data, and bot-generated entries waste resources and harm sales efforts. Here's what you need to know:
One of the biggest challenges with B2B lead lists is outdated or incorrect contact information. It’s estimated that dirty data costs businesses around $15 million annually, with sales development representatives (SDRs) losing 27% of their potential selling time chasing contacts that are no longer valid or accurate.
The consequences of outdated data go far beyond wasted time. Poor data quality can result in serious revenue losses - up to 25% - due to issues like:
Some providers even take it a step further by fabricating lead details to inflate the perceived value of their lists.
In some cases, fraudulent providers manipulate company names, job titles, or other details to make leads appear more valuable. This deceptive practice wastes marketing budgets and misguides sales teams, leaving them chasing contacts that don’t exist.
Data collection can also cross into illegal territory. Some lead list providers use unethical methods that violate laws like the Telephone Consumer Protection Act (TCPA). For example:
Violating the TCPA can result in fines ranging from $500 to $1,500 per unauthorized contact. In 2023 alone, about 1,454 TCPA lawsuits were filed.
Another growing issue is the rise of fake leads generated by bots. These fake contacts drain resources and make it harder to focus on genuine prospects.
Take Canto, for example. Their marketing team struggled with bot-generated leads until they adopted better verification tools. Mandee Richards, Head of Marketing at Canto, shared their experience:
"Since making the changes Lunio recommended, the issues we were having with lead quality have improved massively. We generated more qualified pipeline in the two months after switching on traffic protection than we had done in the previous two years."
Similarly, Tradeshift, a supply chain payments company, dealt with duplicate and fake records that disrupted their operations. By implementing proper data verification tools, they saw a 10x improvement in resource efficiency.
Before committing to a lead list, ask for a sample and evaluate its reliability. Check email deliverability, compare contact information on LinkedIn, and call a few phone numbers to confirm accuracy.
Additionally, take steps to verify the seller's credentials to ensure you're working with a trustworthy source.
It's crucial to confirm the seller's legitimacy. Here's how:
Business Legitimacy
Online Presence
"Legitimate list brokers will have real addresses with actual physical offices, legitimate looking websites, and employees that you can find on LinkedIn."
– Ryan Nicholson, TSL Marketing
Once you've confirmed the seller's credibility, purchase a small list to evaluate its performance before committing to a larger investment.
Starting with a smaller list allows you to test its effectiveness while minimizing risks. Here’s why this approach works:
Here’s how to safely purchase B2B lead lists while staying compliant and maintaining quality.
Relying on a single source for leads can lead to outdated or incomplete data. Instead, spread out your efforts by using multiple providers to keep your lists fresh and reliable.
How to Verify Data Sources
Track Performance
Keep an eye on metrics like conversion rates and email deliverability. This helps you identify which sources are dependable and reduces reliance on any single vendor.
Once you’ve diversified your sources, it’s critical to ensure your practices align with data privacy regulations.
Key Compliance Steps
Verification tools are essential for weeding out low-quality leads before they waste your time and resources.
| Verification Type | Purpose | Key Checks |
|---|---|---|
| Email Validation | Prevent bounce-backs | Check format, domain, and inbox existence |
| Phone Verification | Ensure numbers are active | Verify format, carrier, and status |
| Company Data | Confirm business legitimacy | Review registration, size, and location |
Integrate these tools into your lead acquisition process. This ensures invalid data is caught early, keeping your lists accurate and efficient.
Perform Regular Audits
Schedule monthly audits to remove duplicates, outdated entries, and invalid information. This keeps your database lean and effective.
"Acquiring a list is the fastest way to build a list, but it's not uncommon for 40% or more of the contacts to contain bad data."
Following the verification and safety measures mentioned earlier, these additional steps can help steer clear of lead list scams. Poor-quality data is a serious issue, draining $3.1 trillion from the U.S. economy every year.
Be on the lookout for these red flags alongside earlier verification methods:
"Not only are you paying for the data, but you are also paying someone to find out that lead is no longer with the company."
- Nicolette Dease, Program Manager, MECLABS Leads Group
Here’s how you can put these protection strategies into action:
| Protection Strategy | How to Implement | What It Helps You Achieve |
|---|---|---|
| Vendor Verification | Check BBB ratings, confirm physical address, and review LinkedIn presence | Avoid dealing with fraudulent sellers |
| Data Validation | Use tools like email checkers and phone verification | Minimize invalid or outdated contacts |
| Compliance Check | Ensure GDPR compliance and maintain proper consent records | Stay clear of legal complications |
While cheap data might seem appealing, the hidden costs - like time spent on validation and missed opportunities - can outweigh any savings.
To avoid falling victim to B2B lead list scams, businesses should carefully evaluate potential vendors. Start by verifying that the vendor has a professional website, a physical office address, and active social media profiles where customers share feedback. Ensure the vendor’s email address matches their domain name and confirm the legitimacy of their representatives on LinkedIn.
Be cautious of unsolicited offers, as these can often be red flags. Research the vendor by reviewing testimonials and feedback from past and current clients. Additionally, confirm that the lead lists provided include accurate, up-to-date contact information tailored to your industry. Taking these steps will help protect your investment and ensure you acquire reliable leads.
To ensure your B2B lead list is high-quality, start by using tools that validate contact details like email addresses and phone numbers in real-time. This helps you avoid outdated or fake information. Additionally, define an Ideal Customer Profile (ICP) to focus on leads that closely match your business goals and target audience.
Another effective method is lead scoring, which prioritizes leads based on their likelihood to convert, saving you time and resources. Always verify the credibility of the provider by asking for sample data and checking reviews or testimonials. These steps can help you safeguard your investment and acquire reliable, actionable leads tailored to your industry needs.
When purchasing B2B lead lists, businesses should be mindful of legal risks tied to data privacy and consumer protection laws. Key regulations to consider include the Telephone Consumer Protection Act (TCPA), the CAN-SPAM Act, and state laws like the California Consumer Privacy Act (CCPA). Non-compliance can result in fines, legal action, and damage to your reputation.
To stay compliant, ensure that data was collected with proper consent, verify the accuracy of the leads, and avoid misleading or unethical practices. Always use transparent methods, such as opt-in forms, and limit data usage to the purposes disclosed at the time of collection. Consulting with a legal expert can also help you navigate evolving regulations and safeguard your business.