Ding ding ding! Time for a throw-down 🥊
Leadgeek vs online arbitrage sourcing lists
Leadgeek wouldn't be where it is today without online arbitrage sourcing lists - it started out as one. But like all things in life, online arbitrage is changing, and Leadgeek along with it.
Keep reading to find out how we stack up to a traditional sourcing list... 👇
The 🥩 & 🥔
How does Leadgeek stack up to an online arbitrage sourcing list?
First things first, this isn't a sales pitch. There are lots of benefits to arbitrage sourcing lists and lots of benefits to Leadgeek. There's some overlap with both.
However, it's not my goal to get you to believe in the advantages of Leadgeek 100%. A traditional sourcing list is inevitably going to be better for some people, and Leadgeek better for others. So let's just try some words and honesty instead.
// Why Leadgeek evolved from an online arbitrage sourcing list
The previous version of Leadgeek (v1) was based on a subscription model. You'd pay a monthly fee, and you'd receive a certain number of online arbitrage leads each day in exchange.
It wasn't a bad concept, but there were some things I personally didn't like about it:
- 1.
Not every product you received was ungated for your Seller account. There was some amount of “throw stuff against the wall and see what sticks” by posting leads and hoping that at least some of them were useful to you.
- 2.
Not every product you received was consistent with your own preferences. Be it profit margin, category, or something else, not every product fit your criteria. The thing is, not every product should fit your criteria. It's great to be picky about what you sell. But I didn't feel great delivering products that you weren't able to use.
- 3.
Product leads are distributed among a small, select group of other sellers on the arbitrage list. Though this is basically an industry-standard practice, it's not ideal to share a product lead with anyone else for competition's sake.
- 4.
The monthly fee meant that you couldn't scale sourcing up or down as you need.
So I did some thinking and decided to create a pay-as-you-go Marketplace of leads in lieu of a subscription-based sourcing list.
I call it Leadgeek v2.
You only pay for what you want and what you're excited to use. It's pretty simple:
Purchase tokens
Redeem those tokens for leads
Refund those tokens if you don't like the leads
To solve point #1 above, you can now link your Seller Central account to your Leadgeek account to check for product restrictions before you purchase a lead.
To solve point #2 above, you can see all non-identifying details and product metrics before you purchase a lead.
To solve point #3 above, you can be the exclusive viewer of an arbitrage lead by buying-out (i.e. Buyout) all other spots that might be claimed by another seller.
To solve point #4 above, you can purchase packs of tokens (or Kits) as needed. There are discounts for buying in bulk, but the pricing on each Kit is fair and straightforward with no hidden fees or recurring subscriptions. What you see is what you get. New accounts even get free tokens for signing up.
- 1.
// Leadgeek vs online arbitrage sourcing list criteria
It's an impossible task to compare sourcing list criteria 1:1 with Leadgeek. There are a lot of lists out there, and lots of differences between them. So I'm not going to list all my competitor's sourcing criteria and tell you why I'm better.
If you're interested in a particular arbitrage list, just compare their baseline criteria with Leadgeek's below so you can arrive at your own conclusions.
At the end of the day, though, whichever option you choose should have a healthy net margin on each lead and low list exposure. Having that padding and fewer eyes on a lead will really help prevent a "race to the bottom."
// Every lead meets these standards
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$6+ net profit
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40%+ ROI
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20+ sales / mo.
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10 exclusive spots
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Sourced from 500+ U.S. retailers
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U.S. seller approval
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Not hazmat
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// The average 896-day stats
After providing 11k+ leads, here are the average metrics you can expect from Leadgeek. 👇
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$13 net profit
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81% ROI
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81 sales / month
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// Leadgeek vs the risk of a new online arbitrage sourcing list
When an online arbitrage sourcing list is based on a subscription, members are paying for leads to only be shared among the group.
Because of that, it's not only reasonable, but the responsibility of the person(s) running the arbitrage list to protect the exclusivity for paying members.
Over the years, I've had countless emails that read like this:
"I want to try out your service, but I've been burned by so many arbitrage lists before. How can I be sure yours will work for me?"
With the advent of Leadgeek's Marketplace, I guess you won't have to wonder anymore.
// Last but not least - Leadgeek vs online arbitrage sourcing list costs
One of the big differences between online arbitrage sourcing lists and Leadgeek show up when it comes to pricing. As I've mentioned a few times, there aren't any subscriptions or recurring costs with Leadgeek. You pay as-you-go for what you use.
The Marketplace model makes it so that we're always on our toes. We're only making money when you're spending tokens - and you're only spending tokens on leads you want. Leadgeek is priced for long-term sustainability without complacency in the quality of service we provide.
Leadgeek's business model also scales as we provide more tools, services, and features for you. Any future paid tools will operate on the token model, and that means that you can depend on frequent updates, maintenance, and additions to the platform.
One issue with an online arbitrage list's pricing structure is that it encourages the meeting of quotas, fillers, and junk leads. You're paying a subscription for "X" number of leads, and they're going to have to deliver it to keep you happy.
I've had Leadgeek members explain that "60% of the leads provided by sourcing lists are garbage to them." See, in my opinion, you're paying probably around $100+ / month in a sourcing list subscription... why can't you use more than half it?
Keep scratching the curiousity itch...
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