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  • Writer's pictureBig Guerrilla

What are Lead Generation companies? PART TWO

The World of Data Brokers

Data brokers (list brokers) represent the most significant category of lead generation organizations. Practically everyone and their goldfish is collecting your data. When you buy a vehicle or a home, a vast amount of your information becomes available to various entities. It's not solely the individual you interact with during the transaction; it also involves all the companies associated with the sale. Here are a few involved with a car finance:

  • The Car Dealership where you bought the car

  • Car Maker (Toyota, Ford, BMW, etc.)

  • Finance Companies bidding on the loan

  • Credit Bureaus that provided credit scores (these are the main source of data proliferation)

  • Credit processors that process any down payments

  • State and Local tax collectors

  • 3rd Party Affiliates

  • Car Insurance companies

  • If you show it your friends on social media, that too

All of these entities involved in the purchase are now storing new purchase data. They either market to you or sell it to brokers.

The different types of data

Data brokers vary from reputable and reliable ones that ensure success, to fraudulent individuals who scour the dark web for stolen credit card information or customer data. Here are the various types of data:

  • High-quality data is generally new, freshly acquired data that usually has a 90% or better chance of reaching your target. This data is usually either up-to-date or less than a year old. Examples of these might be credit card companies, city municipalities, opt-in lists, banks, car insurance companies (particularly GEICO), and pretty much everywhere you do business and sign up for something. Unfortunately, many resell your data for profit as part of their ‘Terms and Conditions.’

  • Mid-tier data is moderately reliable, typically ranging from 6 months to approximately 3 years old. You have a good chance, around 70-90% or more, of reaching your target audience with your marketing efforts. These businesses probably acquire their data from a reputable source at a reduced price, although it can be challenging to determine the date of purchase. Furthermore, these companies may continue to sell your data to others until it reaches a lower quality level.

  • Chum data refers to the watered-down data circulating on both the web and dark web. This data typically goes through numerous purchasing and reselling transactions over the years. It may have been stolen or bought from the dark web, and is often outdated. Be prepared for a high number of hard bounce emails, potentially leading to email blacklisting and wasting money on direct mail campaigns.

In the case of purchasing from a list broker, we recommend acquiring new data, preferably that has been opted into.

Does Big Guerrilla resell data?

No, and we do not have any "affiliates" that do either. Most full-service marketing agencies do not resell data as a policy. We encourage clients to furnish their own customer data, but in certain cases of brand awareness or startups, we will acquire high quality data to reach new audience groups.

In the next part we will sum up the lead gen market and how to determine what's best for your business.

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