How Do Auto Transport Lead Providers Work?
When a car shipping customer searches on the Internet for an auto transport company, it is sometimes hard to tell which sites are in the business of shipping cars from the pretenders who are merely lead generation sites. The multiple auto shipping quotes web sites disguise themselves as real car transport companies, capturing personal customer information (name, phone number, email address) and the particulars of an auto transport shipment (pickup, delivery, vehicle type), and then turn around and sell that information to nearly 10 auto transport brokers. What happens next is often chaos and confusion for the customer. They get hammered with unwanted emails and phone calls from auto shipping brokers who will not accept no for an answer. It will want to make you scream!
There are probably about ten former auto transport brokers who for whatever reason decided to give up shipping vehicles. Probably because they weren’t very good at it. The auto transport broker business is hyper competitive and takes a toll on most owners, so off they go. Those guys now dominate the multiple auto shipping quote lead business on the internet. The lead providers usually own several sites that they optimize for certain major keywords. Many lead generation sites employ people whose only job is to find ways to push their auto transport web sites higher on Google, Bing and Yahoo. The customer has a hard time discerning the real car shipping brokers from the fake companies, and may unwittingly submit his or her personal information online. Instantly, as in within seconds, the visitor’s personal information is sold for about $1.00 to $2.00 to 5-10 actual auto transport brokers. The average total value to the phony website owner of a typical multiple car shipping quote lead is roughly $10 to the web site owner. Sometimes higher.
If the auto shipping lead generation site has natural or organic web position, then the $10 collected per lead is pure profit. However, if the site used advertising companies such as Google Adwords to generate traffic to his site, then usually the advertising service gets the lion’s share of the $10. So most lead providers use a mixture of both methods. It’s all numbers, and some lead providers are sharper than others.
What Auto Shipping Brokers Buy The Multiple Quote Leads?
Usually, but not always, highly aggressive and probably desperate auto transport brokers buy the leads. The lead buying broker knows that the lead they just received was also sent to as many as 9 other auto shipping brokers at precisely the same time. On average it cost each broker $1.00 to get that lead. Let’s say he buys 100 leads every day, so that’s $100 regardless of whether he books an order. But that customer received 9 other quotes, and people being people, they gravitate to the lowest quotes. So the auto shipping broker is pushed by the competition to lower his price. Otherwise the car shipping broker will have wasted his money buying leads. But guess what? Those quotes have an extraordinary 70% cancellation rate! They are too low to go. And there is the disservice to the innocent and unwitting customer.
What About The Incessant Emails?
The auto transport broker sends an email to the prospective customer just as soon as he receives the lead. So do 9 other brokers. Ugh! If that car shipping broker’s quote is too high, he is likely to be eliminated from consideration, even though he knows that the order is unlikely to ship anytime soon for less than his quote. The emails keep coming … and coming … and …
What About The Phone Calls?
It gets worse. The lead buying car shipping broker will also call the customer right away because his 9 competitors will surely do that. If he is not one of the very first to call, he may encounter a highly agitated and annoyed customer whose cell phone is lighting up from obnoxious sales people who won’t take no for an answer. The customer may find himself regretting having filled out a multiple quote form, and most certainly providing his phone number.
But wait there’s more … many auto transport brokers trash talk one-another and make all sorts of confusing statements about the process. What to do and what not to do? Why the other fella is so bad and so on. Who does the customer believe? And even if a broker books the order, he must contend with 9 other brokers who have his customer’s information and continue to call.
What Usually Happens?
As noted earlier, there is tremendous downward pressure on lead buying brokers to lower their price. If it’s priced too cheap, the carriers drive right by that load and pick up a vehicle elsewhere that pays better. There is something in every industry called market pricing or rates, and that is also true in the auto shipping business. There are no official statistics, but many brokers know that nearly 50% of the multiple quote lead orders end in cancellation because of cheap pricing.
Our Original Car Shipping Quote Calculator
Direct Express Auto Transport was the very first company to offer free online quotes, and to this day nobody does it better.
Direct Express Auto Transport does not buy car shipping leads!
We don’t ask for any personal information until a customer is ready to order. Give us a try by using our original and innovative auto transport rates calculator. You will find that we are still very competitive but appropriately priced. We know what we are doing, which is the reason that we have only about a 10% cancellation rate. We offer a fair deal for both the customer and the carrier, which is why both love us! Please give us a try today online or call 800-600-3750. Learn more about the auto shipping business by going here.