How to Evaluate a Lead Provider — A Broker's Checklist

Why Most Brokers Regret Their First Lead Provider

The pattern is consistent: a broker needs leads, finds a provider through a Google search or a forum recommendation, signs up, and starts receiving leads. The first few calls go nowhere. The merchant never heard of the broker, never specifically requested funding information, or already has three other brokers calling. The close rate is 2% when the provider promised 10%.

The root cause is almost always one of three things: the leads were shared with multiple brokers, the leads were old (generated weeks or months ago), or the qualification data was fabricated to make the merchant look more creditworthy than they are.

None of this would have been a surprise if the broker had asked the right questions before buying. Lead providers who sell shared, stale, or inflated leads rely on new customers who don't know what to ask. The checklist below is what experienced brokers learn to ask — after one painful experience.

The 7-Point Checklist Before You Commit

Run every lead provider you evaluate against these seven criteria. They're ordered by impact on your close rate — the ones at the top matter most.

• 1
  Exclusivity — Who else is calling this merchant? This is the single most important factor. An exclusive lead goes to one broker only. A shared lead goes to 3, 5, sometimes 10+ brokers simultaneously. When you call a shared lead, you're not selling — you're competing. The merchant has already heard from two brokers before you dialed. Ask: "Is this lead sold exclusively to me, and can you show me that guarantee in writing?" If the answer is vague, assume shared.
• 2
  Freshness — When did the merchant actually express interest? Lead age is the second-most important quality signal. A merchant who filled out a funding inquiry 6 hours ago is in a completely different mindset than one who did it 3 weeks ago. Best-in-class providers deliver leads within 24–48 hours of merchant opt-in. Ask: "What is your average lead age at delivery, and what is the maximum age of leads I might receive?" Any answer over 72 hours should prompt follow-up questions.
• 3
  Return Policy — What happens when a lead is bad? Every legitimate provider has a return or credit policy for leads with bad contact information, disconnected numbers, or merchants who never inquired. "Bad lead" criteria should be defined clearly: wrong number, opted out before contact, business closed, or obviously fake information. Ask: "What is your credit policy, and what qualifies a lead for return?" If there's no policy, or if the criteria are written to make returns nearly impossible, that tells you everything about lead quality confidence.
• 4
  Pricing Model — How are you actually being charged? Lead providers use three main models: subscription (flat monthly fee for a set volume), pay-per-lead (charged per lead received), and retainer (flat fee for dedicated sourcing). Each has different economics. Subscription rewards you when lead volume is high and hurts you when it's low. Pay-per-lead gives you flexibility but typically has higher per-unit cost. Ask: "Can I pause or reduce volume without penalty?" and "What happens to unused leads if I don't need full volume one month?"
• 5
  Geographic Targeting — Can you filter by state or region? This matters most if you're licensed in specific states, have lender relationships that favor certain geographies, or specialize in industries concentrated in particular regions (agriculture in the Midwest, hospitality in tourist markets). A good provider lets you filter by state at minimum. Ask: "Can I specify which states I want leads from, and is there a minimum volume requirement per state?" Providers who can't offer geo-filtering are typically running bulk aggregated lists, not targeted acquisition.
• 6
  Volume Flexibility — Can you scale without friction? Your lead volume needs will change. You'll have good months where you can work more leads, slow months where your bandwidth is lower, and expansion periods where you want to double intake. Ask: "Can I increase my monthly volume with less than one week's notice?" and "Is there a minimum monthly commitment that locks my spend floor?" Providers who require 3-month minimums or 30-day notice for changes are optimized for their cash flow, not your results.
• 7
  Data Quality — What fields are verified before delivery? At minimum, a funding lead should include: business name, owner name, phone, email, time in business, monthly revenue, and funding amount requested. The question is which of these are verified vs self-reported. Phone numbers can be validated with carrier lookup. Emails can be validated with domain checks. Business name and time in business can be verified against state registration records. Ask: "What data fields do you validate before delivering a lead, and how?" Self-reported data from a web form with no validation is worth less than verified data — and should cost less.

Red Flags That Should Make You Walk Away

Beyond the checklist, there are specific practices that signal a provider is more interested in your monthly fee than your results. These are not yellow flags — they're red.

• !
  Long-term contracts with no exit clause. A 6- or 12-month contract with no performance-based exit is a sign the provider knows their retention numbers are bad. Legitimate providers offer month-to-month because they're confident in results. If you have to fight to leave, they already know you'll want to.
• !
  "Unlimited leads" claims. Volume without quality controls is worthless — or worse, it's negative (you're spending time calling merchants who never inquired). Real lead providers can tell you exactly how many leads your market generates per month. "Unlimited" means they're aggregating bulk lists and calling it lead generation.
• !
  No trial period or sample leads. Any provider confident in their product will offer you 5–10 sample leads before you commit, or at minimum a 30-day trial with a satisfaction guarantee. "We don't do trials" means they know the first month's experience would prevent you from signing a longer contract.
• !
  Vague answers about lead sourcing. "We have proprietary methods" is not an answer. You should know whether leads are generated from search ads, content, social ads, SMS blasts, or data brokers. Each source produces different intent quality. A provider who won't explain their acquisition channel is hiding something about intent quality or how recently the merchant was actually active.
• !
  No verifiable testimonials or references. Ask for two broker references you can call. Not a testimonial on their website — a name and number. Providers with a track record of results are proud to connect you with happy customers. Providers without one will deflect with "confidentiality" or never follow up with the contacts they promised.
• !
  Pressure to sign before you "lose your spot." Artificial urgency is a sales tactic, not a sign of high demand. If a provider is pressuring you to commit today or lose access to their lead pool, ask yourself why they have excess supply they need to move quickly.

Pricing Models: Subscription vs Pay-Per-Lead vs Retainer

The pricing structure determines your unit economics and flexibility. Here's how the three models compare at realistic volume levels:

The subscription model wins for most brokers because it aligns the provider's incentive with your results. A subscription provider can't inflate lead counts to increase revenue — their revenue is fixed. A pay-per-lead provider has direct financial incentive to deliver more leads, regardless of quality.

The key question with any subscription: what is the minimum monthly lead volume included, and what happens if volume falls short? A subscription that promises 20–30 leads per month should have a credit or rollover clause when they don't deliver.

What to Ask Before Signing — Exact Questions for the Sales Call

Use these verbatim on your next call with a lead provider. The answers — and the hesitations — tell you more than any sales deck.

On Exclusivity

• How many brokers receive each lead I purchase?
• Is that exclusivity commitment in my contract, or just a verbal policy?
• If I discover a lead was also sent to another broker, what is your resolution process?

On Lead Quality and Freshness

• What is your average lead age at time of delivery — from when the merchant opted in to when I receive it?
• What data fields do you verify, and how do you verify them?
• Can I see a sample lead before purchasing?

On Return Policy

• If I receive a lead with a disconnected phone number, what is your credit policy?
• What specifically qualifies a lead for return or credit?
• Is there a time window after delivery for requesting a credit?

On Pricing and Commitment

• Can I cancel month-to-month with no penalty?
• If I need to reduce volume for one month, can I do that without restarting my contract?
• What happens to leads I paid for if I cancel mid-month?

On Lead Sourcing

• How are your leads generated — search ads, content, social, data lists, or some combination?
• Can you connect me with two current broker customers I can call as references?