Everyone wants to be on the inside... at least if you are on the outside looking in. Im old enough to remember walking with my parents or grandparents through the downtown streets of Springfield, IL at Christmas time, and looking in the display windows of all the Christmas decorations, toys, and electric trains. I was on the outside, and I wanted inside where the good stuff was.

Well, I dont know if you are on the outside of the MLM Leads industry wanting to get in, but I want to take you on a tour - to get the inside scoop of the leads business. If you knew what actually went on in some arenas, you may think the inside scoop looks like this picture.

How Leads are Generated

For the most part, network marketing leads are generated over the Internet. While I dont have a scientific study for this across all the leads companies, I would estimate 85-90% of all leads you find for sale are originated on the Internet.

There are two main reasons for this. First, the Internet is where most people are doing their research today when looking for jobs, for ways to make extra money, how to invest, etc. So, why not go where the people are looking. Second, it is the most cost effective (usually).

Generally speaking, a person is surfing the Internet, doing a Google search, and checking out their options for ways to make extra income. Or, sometimes the person is not even thinking about wanting more money when an online ad catches their attention and they check it out. So, they fill out a form and hit submit.

That is the basics of online lead generation. Some person is out there surfing the Net. There is an online ad. The person fills out the online form and hits submit, and BOOM, they are now a prospect waiting to be sold.

Sounds innocent enough huh? In fact, it sounds like quite a nice system. Wouldnt we all like to receive a batch of leads after they had been surfing the Internet for ways of making money from home... they filled out a form... and now you have their name, phone, and E-mail address in your hands.

But, lets look at what happens out there sometimes and some of the variables that can make a HUGE difference in the type of lead you now hold in your hand.

Incentivized Leads

in-cen-tive (noun) - : something that incites or has a tendency to incite to determination or action

One of the biggest problems that exists among the Internet lead generation business is the incentives that "incites" or "entices" a person to fill out a form and hit submit. If you have purchased leads long enough, then you have probably come across the person who did not know they were going to be contacted about a home business... instead they were going to get a new Video iPod, $10,000, or a vacation cruise.

So, what do you do? You go to XYZ Leads company and you buy a batch of leads. The leads are $2.25 each, so you buy 50 of them for $112.50. There is a chance you may find a good prospect in there, but, for the most part, you are going to have "wishy-washy" prospects.

No lead is ever pure because we don't know what other sites the prospect has been to, filling out forms, and checking out other businesses. However, if you are going to invest in leads, it is worth a few extra minutes of research or an email or phone call to the owners, to know what kind of leads you are purchasing. And, even more important, order a smaller batch of leads to test market before moving forward with a company. Leads are all about results, so ask and test.