A lead replacement policy is a commitment from a lead generation company to provide a free replacement lead when a delivered lead does not meet the agreed specification. Instead of receiving a cash refund, you receive a new lead of the same type at no additional cost. This ensures your lead flow is maintained while protecting you from paying for invalid leads.
How Replacement Policies Work
The process is typically straightforward. When you receive a lead that you believe is invalid — for example, the phone number is wrong, the consumer does not recall enquiring, or the lead falls outside your agreed criteria — you submit a replacement request through the provider's system or via email.
Your request should include the lead reference number and a brief explanation of why the lead is invalid. The provider reviews the request, and if it meets their replacement criteria, a new lead is added to your allocation at no charge. Most providers aim to process replacement requests within 24-48 hours.
Replacement vs Refund
A replacement policy differs from a refund policy in how you are compensated. With a refund, you receive your money back. With a replacement, you receive a new lead instead. In practice, the outcome is similar — you are not left paying for an invalid lead — but the mechanism differs.
Most lead generation companies prefer replacements over cash refunds because it keeps the commercial relationship flowing. You maintain your lead volume without interruption, and the provider maintains their revenue while making good on their quality commitment. Both parties benefit from this approach.
Some providers offer a choice between replacement and credit. Credits accumulate and can be applied to future lead purchases. This is useful if you want to consolidate replacements and apply them to a larger order later.
What Qualifies for Replacement
Fair replacement policies typically cover:
Wrong number. The phone number provided does not connect to the person named on the lead, or the number is disconnected or out of service.
No recollection. The consumer confirms they did not submit an enquiry and has no idea why they are being contacted.
Duplicate. You have already received the same consumer's details within a recent time period.
Outside criteria. The lead does not match the specifications you agreed — wrong geographic area, wrong product type, or missing key qualifying information.
Already serviced. The consumer confirms they already have a broker or adviser handling their needs and did not intend to seek a new one.
What Does Not Qualify
Understanding what falls outside a replacement policy is equally important:
Non-answer is not invalid. A consumer who does not pick up the phone has not been proven invalid. They may be busy, screening calls, or available at a different time. Most providers require evidence of multiple contact attempts before a replacement is considered for non-contact.
Changed mind is not invalid. If the consumer confirms they submitted the enquiry but has since decided not to proceed, that is a natural part of the sales process. The lead was genuine at the time of submission.
Poor conversion is not a quality issue. If your overall conversion rate is lower than expected, that reflects your follow-up process, market conditions, or competitive landscape — not individual lead quality.
Time Limits
Most replacement policies include a time window for submitting requests — typically 7-14 days from the date the lead was delivered. This is reasonable and encourages prompt follow-up. If you are sitting on leads for weeks before attempting contact, it becomes difficult to distinguish between invalid leads and leads that went cold due to delayed follow-up.
Evaluating a Provider's Replacement Policy
When assessing a lead provider, ask for their replacement policy in writing before you start. Key things to check: What specifically qualifies for replacement? What is the time limit for requests? How quickly are replacements processed? What is their overall replacement rate? A provider with a low replacement rate — below 5% — is demonstrating confidence in their lead quality. A provider who is evasive about their policy or makes the replacement process unreasonably difficult should be avoided.
At Lurvo Digital, our replacement rate sits below 4%. We provide a clear, written replacement policy to all clients, and replacement requests are processed within 24 hours. We believe a fair, transparent replacement policy is essential to a healthy client relationship.