Lead generation is a form of direct response marketing that is common in many fields of consumer finance. Lead generation companies attempt to obtain an expression of interest and personal information from consumers. Lead generation companies will then pass this information (the “lead”) to salespeople—often to the highest bidder or set of multiple bidders—who will contact and attempt to sell to the lead.
Leads are often generated through direct mail programs and through forms on the Internet. You may be presented with an incentive to provide your personal information such as a prize drawing, price quotes, or some other piece of information that promises to offer value.
Receiving competing price quotes or proposes from multiple sources can actually prove valuable. It allows you to comparison shop and present questions to multiple sources.
However, you need to be very careful about providing your personal information. Check the privacy policy of the lead company and try to find out whether they are legitimate and established—not all lead generation experiences are created equal. Expect to receive many, many phone calls if you provide a phone number. If possible, avoid providing your mobile number, and never provide a social security number. Overall, be cautious about lead generation and conservative about sharing any personal information.
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