If you're a mortgage broker, insurance adviser, or financial planner thinking about buying leads for the first time, this guide is for you. We'll explain exactly what purchased leads are, how the process works, what realistic results look like, and how to avoid the most common mistakes that waste money and cause frustration.

We'll also be honest about something most lead providers won't tell you: buying leads isn't right for everyone. For some businesses, generating your own leads through referrals, content marketing, or your own advertising will produce better results. We'll help you figure out which camp you fall into before you spend a penny.

What Are Purchased Leads?

A purchased lead is a consumer enquiry that has been generated by a third-party company and sold to you. The consumer has typically filled out an online form expressing interest in a financial product — a mortgage, life insurance, a remortgage, equity release, or something similar — and their details are then passed to a broker or adviser who can help them.

The form might be on a comparison website, a dedicated landing page, or a social media ad. The consumer provides their contact details and some information about what they're looking for. That information is then delivered to you, usually in real time, so you can contact them and offer your services.

In simple terms: someone else does the marketing and advertising to find people who need financial advice, and you pay for the opportunity to speak with those people.

How the Process Actually Works

Understanding the mechanics helps you set realistic expectations. Here's a typical journey from start to finish.

Step 1: The provider generates the enquiry. A lead generation company runs advertising campaigns — on Google, Facebook, Instagram, or their own websites — targeting consumers who are looking for financial products. They might run a Google Ads campaign targeting "mortgage broker near me" or a Facebook ad offering a free mortgage comparison. The specific approach varies by provider and affects the quality of the leads you receive.

Step 2: The consumer fills out a form. When someone clicks the ad or visits the website, they complete a form with their details. A good provider will ask qualifying questions — property value, deposit amount, employment status, what they're looking for — to ensure the lead has some substance. The consumer should be clearly informed that their details will be shared with a broker or adviser.

Step 3: The lead is verified. Reputable providers verify the lead before sending it to you. This might involve checking the phone number is real, sending an SMS verification code, or validating the email address. Verification significantly reduces the number of bogus or accidental submissions you receive.

Step 4: The lead is delivered to you. You receive the lead in real time — usually via email, SMS, or directly into your CRM. The best providers deliver leads within seconds of the consumer submitting their form. Speed matters enormously here, which we'll cover later.

Step 5: You follow up. This is your responsibility, and it's where most of the value is either captured or lost. You call the consumer, discuss their needs, and if appropriate, begin the advice process. The quality of your follow-up is the single biggest factor in whether buying leads works for you.

What to Realistically Expect

Let's talk about numbers, because this is where expectations often go wrong. These figures are illustrative and based on typical industry ranges — your actual results will vary based on lead type, your follow-up process, your speed to contact, and many other factors.

Contact rate: 50-70%. Not every lead will answer the phone. Some will have provided a wrong number (despite verification, this still happens occasionally). Others will be busy, screening calls, or will have changed their mind. If you're calling within 5 minutes of the lead arriving and following up with texts and subsequent calls, you should reach about 50-70% of your leads.

Conversation rate: 35-50%. Of the people you reach, not all will be a good fit. Some will have already arranged their mortgage elsewhere. Some won't be ready to proceed. Some will have been browsing casually and aren't serious yet. Expect roughly 35-50% of your contacts to turn into genuine conversations about their needs.

Conversion rate: 8-15%. Of all the leads you receive, you can typically expect to convert 8-15% into paying clients. This is a wide range because it depends heavily on the lead type, whether the leads are exclusive or shared, and the quality of your follow-up process. Some brokers achieve 20%+ with excellent processes and exclusive leads. Others sit at 5% because they're slow to call or don't follow up persistently.

Timeline: 1 day to 6 months. Some leads will be ready to proceed immediately. A first-time buyer who's found a property and needs a mortgage urgently might convert within days. A remortgage lead with six months left on their fixed rate might not convert for half a year. Don't judge your results based solely on the first week — build your pipeline and give it time.

These numbers might seem low if you're used to referrals, where conversion rates can be 40-50%. But referrals come with implicit trust and a warm introduction. Purchased leads are from consumers who don't know you yet and may have just been browsing. The economics work because the volume is higher and the cost per lead is significantly lower than the revenue each converted client generates.

How Much Do Leads Cost?

Lead pricing in the UK financial services market varies significantly by product type, exclusivity, and provider quality. Here are rough ranges to give you a sense of the investment involved.

  • Mortgage leads: £10-45 for exclusive leads, depending on the type (first-time buyer, remortgage, buy-to-let). See our detailed breakdown of mortgage lead costs.
  • Life insurance leads: £40-80 for exclusive leads. More detail in our life insurance lead cost guide.
  • Equity release leads: £30-70 for exclusive leads, reflecting the higher value per case. Our equity release lead cost guide covers this in detail.
  • Secured loan and second charge leads: £30-60 for exclusive leads.

The per-lead cost is less important than your cost per acquisition — the total amount you spend on leads to win one client. A £40 lead that converts at 12% costs you roughly £333 per client. If your average case generates £1,000+ in fees or commission, that's a strong return. Use our lead ROI calculator to model your specific numbers.

Exclusive vs Shared Leads: Which Should You Choose?

This is one of the first decisions you'll face, and it matters more than most beginners realise.

Exclusive leads are sent to you and only you. No other broker receives the same enquiry. This means less competition, a better experience for the consumer, and significantly higher conversion rates. The trade-off is a higher per-lead cost.

Shared leads are sent to multiple brokers — typically 2-5, but sometimes more. They're cheaper per lead, but you're competing with other brokers to reach the consumer first. Conversion rates are lower, and the consumer experience is worse (imagine receiving four calls from different brokers within minutes of filling out a form).

For most beginners, we recommend starting with exclusive leads. The higher per-lead cost is more than offset by the better conversion rate, and you don't need to worry about being the fastest caller. Our exclusive vs shared leads guide covers this decision in much more detail.

Why Speed to Contact Matters So Much

If there's one piece of advice that will make the biggest difference to your results, it's this: call your leads fast. Research from the Harvard Business Review found that firms who contacted leads within five minutes were 100 times more likely to reach the prospect than those who waited 30 minutes.

In practical terms, this means you need a system. You can't be in the middle of a client meeting, receive a lead by email, and call it two hours later when you're free. By then, the consumer has either lost interest, found another broker, or forgotten they made the enquiry.

Here's what a good response system looks like:

  • Real-time alerts. Set up SMS or push notifications so you know the moment a lead arrives. Don't rely on checking your email periodically.
  • A backup plan. If you can't call immediately, have a colleague or virtual assistant who can make the first contact. Even a brief "Hi, I received your enquiry, I'll call you back in 30 minutes" is better than silence.
  • An auto-text. Some CRM systems can automatically send a text message to the consumer seconds after the lead arrives: "Thanks for your enquiry. I'm [Name] from [Company] and I'll call you shortly." This sets expectations and increases the chance they'll answer your call.
  • Defined working hours. Set your lead delivery hours to match when you can actually call. Receiving leads at 9pm when you won't call until the next morning is wasteful.

Read our lead follow-up scripts resource for specific language that works well on first contact.

How to Follow Up Leads Properly

Calling fast is essential, but it's only the beginning. Most leads won't convert on the first call — or even the second. Effective follow-up requires persistence and a structured approach.

The first call. Be warm, professional, and to the point. Confirm their enquiry, acknowledge what they're looking for, and ask a few qualifying questions. Don't launch into a sales pitch. Your goal on the first call is to establish trust and book a proper consultation or fact-find.

If they don't answer. Leave a voicemail (keep it under 30 seconds), send a text message, and try again later. Most consumers don't answer unknown numbers on the first attempt. That doesn't mean they're not interested — it means they were busy, cautious, or screening calls.

Follow-up cadence. A sensible follow-up sequence might look like this:

  • Call 1: Within 5 minutes of receiving the lead
  • Text: Immediately after if no answer
  • Call 2: 2-3 hours later
  • Call 3: Next day, different time of day
  • Email: Day 2 with helpful information
  • Call 4: Day 3
  • Call 5: Day 5-7
  • Monthly check-in: For leads that aren't ready yet but might be in future

The brokers who get the best results from purchased leads are the ones who are most persistent and systematic. Many of the best conversions come from the third, fourth, or fifth attempt to make contact. Our full lead follow-up guide goes into much more detail.

Common Mistakes That Waste Money

We've seen hundreds of brokers start buying leads. Those who struggle usually make one or more of these mistakes.

Mistake 1: Treating leads like referrals. Referrals come with built-in trust. Purchased leads don't. The consumer doesn't know you, hasn't been recommended to you, and might be sceptical. Your approach needs to be different — more consultative, more patient, and focused on building credibility quickly.

Mistake 2: Giving up too quickly. If someone doesn't answer on the first call, most brokers write them off. But 80% of sales require at least five follow-up contacts. If you're only calling once, you're leaving most of your investment on the table.

Mistake 3: Not tracking results. You need to know your numbers: how many leads you received, how many you contacted, how many conversations you had, and how many converted. Without this data, you can't tell whether the leads are working, whether your follow-up needs improvement, or whether you should adjust your budget. A simple spreadsheet is enough to start with.

Mistake 4: Buying more leads than you can handle. If you can properly work 15 leads per week (calling fast, following up persistently, nurturing longer-term prospects) then buying 40 leads per week is wasteful. You'll end up slow to call, inconsistent with follow-up, and frustrated with your conversion rate. Start with a volume you can handle well, and scale up as your process improves.

Mistake 5: Choosing on price alone. The cheapest leads are rarely the best value. A £10 shared lead with a 3% conversion rate costs you £333 per client. A £35 exclusive lead with a 12% conversion rate costs you £292 per client. Always think in terms of cost per acquisition, not cost per lead. Our cost per lead calculator can help you model these comparisons.

Mistake 6: Not having a CRM or system. Trying to manage leads from sticky notes, memory, and random spreadsheets is a recipe for missed follow-ups and lost revenue. You don't need expensive software — there are plenty of affordable CRMs designed for financial advisers — but you need something. See our CRM integration guide for practical recommendations.

When You Shouldn't Buy Leads

We're a lead provider, so we have an obvious incentive to encourage you to buy leads. But we'd rather be honest than make a short-term sale that leaves you disappointed. Here are situations where buying leads probably isn't the right move — at least not yet.

You don't have a follow-up process. If you don't have a system for calling leads quickly and following up consistently, you'll waste your money. Sort out your process first, then invest in leads. It doesn't need to be complex — a CRM, defined follow-up cadence, and committed time blocks for calling are enough.

Your cash flow can't sustain it. Leads require upfront investment before you see returns. If you buy 20 leads at £35 each, that's £700 before you've converted a single one. If your first conversion takes 3-4 weeks, can you sustain that outlay? Make sure you can comfortably invest for at least 6-8 weeks before expecting to recoup your investment.

You're drowning in existing work. If you're already overwhelmed with your current caseload, adding leads you can't properly work is wasteful. Hire support, clear your backlog, or adjust your capacity before adding more enquiries to the pile.

You haven't explored free channels first. Before spending money on leads, have you fully exploited the channels that don't cost per enquiry? Referral partnerships with estate agents, accountants, or other professionals can generate high-quality leads at zero cost. A Google Business Profile with good reviews can bring in local enquiries. Social media content, while time-consuming, can build a pipeline over time. Our buying leads vs generating your own guide helps you think through this decision.

You're expecting guaranteed results. No lead provider can guarantee a specific conversion rate or return on investment. If you're only willing to spend money if success is guaranteed, buying leads will frustrate you. It requires a willingness to test, learn, and refine your approach over time.

How to Get Started Sensibly

If you've read this far and you think buying leads could work for you, here's a practical roadmap for getting started without unnecessary risk.

1. Set up your follow-up process first. Before you spend a penny on leads, make sure you have a way to receive and act on them quickly. A basic CRM, notification system, and follow-up cadence are the minimum requirements.

2. Set a test budget. Don't commit your entire marketing budget to leads from day one. Start with a test budget you can afford to lose — typically £300-500 for a 2-3 week trial. This gives you enough leads to learn from without catastrophic consequences if it doesn't work immediately. See our guide to setting a lead buying budget for more detail.

3. Choose your lead types. Start with 1-2 lead types that match your core expertise. If you're a mortgage broker, start with mortgage leads or remortgage leads. If you're an insurance adviser, start with life insurance leads. Don't try to buy every lead type at once — focus, learn, and expand.

4. Choose a provider carefully. Use the criteria in our guide to choosing a lead provider. Ask about lead sources, exclusivity, verification, delivery speed, and refund policies. Start with a provider who doesn't require long-term contracts.

5. Start small and track everything. Begin with 5-10 leads per week. Track every lead: when it arrived, when you called, whether you made contact, the outcome of the conversation, and whether it converted. This data is invaluable for optimising your approach.

6. Evaluate after 4-6 weeks. Don't judge your results after three days or even two weeks. Give yourself enough data to draw meaningful conclusions. Calculate your cost per acquisition and compare it to your other marketing channels. If the numbers work, gradually increase your volume. If they don't, review your process before blaming the leads.

7. Refine and scale. Once you've proven the ROI, you can increase your volume, add new lead types, and start optimising your conversion rate. Small improvements in your follow-up process can have a significant impact on your bottom line. Our scaling your lead pipeline guide covers this stage in detail.

Which Lead Types Should You Start With?

The best lead type to start with depends on your qualifications, expertise, and business model. Here's a brief overview of the main options available in the UK market.

We cover all of our available lead types on our leads hub, with detailed information about what's included in each type.

What Separates Brokers Who Succeed from Those Who Don't

After working with hundreds of brokers and advisers, the pattern is clear. Success with purchased leads comes down to a small number of disciplines, not any special talent or secret technique.

Speed. The brokers who call within 5 minutes consistently outperform those who call after an hour. This is the single most impactful variable.

Persistence. The brokers who follow up 5-7 times convert significantly more leads than those who call once and move on. Most consumers need multiple touchpoints before they're ready to engage.

Tracking. The brokers who know their numbers — contact rate, conversation rate, conversion rate, cost per acquisition — can identify and fix problems. Those who don't track are flying blind.

Patience. Buying leads is not an instant fix. It takes time to build a pipeline, refine your approach, and see consistent returns. The brokers who succeed are the ones who commit to the process for long enough to see it work.

Honesty with themselves. If your conversion rate is poor, the answer isn't always "the leads are bad." Sometimes the leads are fine and the follow-up needs work. The best brokers are willing to examine their own process critically and make changes.

If you're ready to explore buying leads, start by understanding how our process works and reviewing our transparent pricing. If you have questions, get in touch — we're happy to talk through whether leads are the right approach for your specific situation, with no pressure and no obligation.