Buying Leads for Commercial Services: Is It Worth It? A Balanced Look at the Pros and Cons

Buying leads can be an attractive option for commercial services businesses looking to grow faster, but is it worth it?

The question sales teams wonder whether these leads are quality or just fill the sales pipeline with unqualified prospects.

In the early stages of your business, you’re often tempted to look for a quick fix over a long-term solution. If the end goal is to get lifetime customers, will buying leads get you those results or just waste time and resources building a list of “potential customers” who never convert into sales?

Remember, the focus should be on getting relevant leads—prospective clients who are actually interested in buying your products and services, not just tire kickers.

In this case buying business leads becomes a strategic decision. A balanced lead generation process—combining purchased and organic leads—can be the key to success if you do it right.

Today, we’re going to look at the pros and cons of buying leads for commercial services and give you the data to decide if it’s for your business (or not)!

What Are Leads and Lead Providers?

A lead is a potential customer who is interested in your products or services and has willingly given you permission to contact them. This is where we run into our first challenge- but we’ll come back to this point later.

A lead provider is a company that generates leads for businesses and sells them at a profit. Lead providers can sell different types of leads, including inbound leads, email leads, business leads, direct dials, LinkedIn leads, intent data leads, and more.

For businesses looking to buy sales leads, the decision is whether those leads will turn into paying customers.

But buying leads online comes with pros and cons so it’s important to know how to get high quality leads from top lead providers.

Who Can Buy Leads?

Anyone can buy business leads from the lead generation platforms who sell them, but generally commercial services leads are made accessible to small to medium-sized businesses and large enterprises. These could include anyone from a commercial HVAC installer or dealer to commercial cleaning and janitorial, landscaping and grounds, or roofing and solar companies.

But, it’s important to choose reputable lead providers that comply with data protection laws. To avoid legal risks and fines, make sure you follow all local and federal regulations. In the USA, this means following FCC regulations such as explicit data collection and consent rules, the Can-Spam Act, Do-Not-Call (DNC) Protections, and, in other parts of the world, GDPR.

The Pros of Buying Leads

When done correctly, buying leads can be a quick way to feed your sales pipeline. After all, lead generation platforms and providers in the space have massive databases of potential customers, so you can buy leads that are targeted to your specific audience. This saves your sales team time and resources so they can focus on closing deals, not prospecting.

Buying high quality leads (key phrase) from trusted lead providers can also get you higher conversion rates. They use advanced tools to score leads based on intent and key decision makers so your sales reps are talking to prospects who are more likely to convert.

Another benefit is you can buy fresh leads that match your ideal customer profile (ICP) so the sales process is smoother.

The Cons of Buying Leads

But buying leads isn’t without its drawbacks. Not all purchased leads are high quality or even relevant. Some lead providers sell low-quality leads that are old, incomplete, or not aligned with your business’s needs. These leads will waste your time, slow down your sales process, and can even hurt your brand reputation through bad reviews and other online chatter.

In addition, compliance with data protection laws from the FTC, FCC, and GDPR is key to keeping your risk profile low. Some lead databases don’t comply with these regulations, so your business is at risk of fines or legal action.

Companies that don’t vet their lead providers properly can find themselves in “hot water.” Some minor issues may be things like oversold leads and inaccurate data which will result in wasted resources, major issues could include lawsuits.

There are a few other cons you may want to consider.

Some platforms don’t use email checkers, enrichment, and data validation services and software. Buying leads from these providers can get expensive when you factor in hidden costs or need to purchase lead list updates.

Keep in mind that poor quality leads have low engagement rates and even lower conversion rates which ends up providing little to no return on investment (ROI).

Risks and Considerations

Be cautious of lead providers that promise huge lead databases or very low prices. These often result in low-quality leads and inaccurate data that can hurt your business reputation. Always prioritize federal regulations and other data protection laws when buying leads.

How to Buy Quality Leads

To avoid these pitfalls, research the lead provider thoroughly. Read reviews, ask for a demo, and verify the lead generation platform’s compliance with FTC, FCC, GDPR, and other data protection laws (I know that I keep “hammering” this point, but it’s critical to stay away from bad organizations).

Having an Ideal Customer Profile (ICP) will help you filter out the leads that are best for your business. When you buy qualified leads, you ensure your sales team is talking to high-quality prospects that are more likely to convert and overall sales pipeline efficiency.

You can also look into specialized platforms like LinkedIn Sales Navigator or other sales acceleration solutions that give you access to targeted leads based on job titles, industries, and specific business needs.

Finally, do the math. This is extremely important when buying leads. Determine your cost per lead and compare it to your average conversion rate, lifetime customer value, churn rate, and other KPIs. Does the cost justify the potential ROI? If not, you may want to consider alternative lead-generation methods.

Alternatives to Buying Leads

Buying leads can kickstart your business growth, but generating leads by using sales intelligence platforms, inbound and outbound marketing, social media, and other channels can be less costly and more effective.

Here are 9 Alternatives to Purchasing Leads from Providers:

1. Inbound Marketing

Inbound marketing involves creating valuable content like blogs, white papers, and infographics that attract potential customers to your website. By addressing their pain points and offering solutions, you can generate qualified leads organically through your inbound strategy.

2. Social Media Engagement

Actively engaging on platforms like LinkedIn, Facebook, Instagram, TikTok, and Snapchat allows businesses to build relationships with prospective customers. Regular posting, responding to comments, and joining industry groups can foster connections and generate leads without purchasing them.

3. Referral Programs

Set up a referral program to reward existing customers for referring new clients. Referred leads are often more trustworthy and cost-effective since they come through an established relationship and are more likely to convert.

4. Sales Intelligence Software

Using sales intelligence platforms like Convex, Cognism, Apollo, and LinkedIn Sales Navigator or tools that track buyer intent data can help businesses identify qualified leads. These tools enable you to target key decision-makers and access valuable insights into potential customers without buying generic lead lists.

5. Paid Ads

Running paid ad campaigns on platforms like Google Business and Local Services Ads (LSA), Facebook Ads, and LinkedIn Ads allows you to target specific demographics and industries. With precise targeting and optimized campaigns, you can attract high-quality leads interested in your services or products.

6. Email Marketing Campaigns

Build an email list through opt-ins on your website and regularly send out nurturing email campaigns. By providing valuable insights and updates, you can keep prospects engaged and gradually guide them down your sales funnel until they’re ready to convert.

7. Partnerships and Collaborations

Partner with complementary businesses to gain access to their customer base. Cross-promotions, co-hosted events, or joint ventures can introduce your services to a new audience and generate leads without the cost of purchasing lists.

8. Search Engine Optimization (SEO)

Optimizing your website for search engines increases visibility and helps attract relevant traffic. When your target audience searches for solutions you provide, a strong SEO strategy ensures they find you organically, resulting in qualified leads.

9. Hosting Webinars or Events

Hosting educational webinars, virtual events, or workshops can help you build credibility and attract potential leads. Attendees are likely to be highly interested in your offerings, providing an opportunity to collect contact information and follow up with qualified leads.

These strategies give you a well-rounded way to generate leads, whether through ads or organically. It’s all about combining smart tactics, engaging content, and targeted advertising to cut down on the need to buy leads.

Building relationships with potential customers is key! You can do this by sending nurturing emails or creating fun quizzes that collect contact details, keeping that fresh lead flow steady.

Plus, using a research-on-demand service or a sales intelligence platform can really help you snag high-quality leads while staying compliant with data protection laws. These platforms usually offer lead lists that are way more targeted than your typical lead databases.

Convex: Sales Intelligence Software Built for Commercial Services

One of the best alternatives to buying leads is using Convex, a sales intelligence platform that utilizes property intelligence and intent data to help you find relevant, in-market leads that are ready to buy.

Commercial services sales reps spend an average of 2 hours per day, 4- 5 days per week generating sales leads (according to Salesforce) – Convex can do the same steps in 3- 5 minutes.

How Convex Works:

1. Log in and Check “Signals”

Start by logging into Convex and checking the “Signals” category—our proprietary buyer intent data—to see who’s “in-market” and ready to buy. Unlike buying lead lists, Convex offers best-in-class data that’s updated regularly, so the signals you’re seeing are as close to real-time as possible. These signals provide intent scores based on various factors, helping you prioritize high-value prospects.

2. Search for Properties, Accounts, and Contacts  

Search for properties or accounts that align with your products and services. This could be anything from a specific property type (e.g., hospital, airport) to individual contacts, job titles, account names, or tenant information. Convex’s property intelligence includes key insights such as permit histories, building age, square footage, ownership, transaction details, and equipment data, making identifying and closing new leads easier.

3. Leverage Generative AI for Personalized Outreach  

With just two clicks, use Generative AI—trained on buyer signals, firmographic data, and your company’s contact data—to send a personalized email or draft a phone script. The AI uses data like job titles, decision-maker information, and property history to craft targeted messages that resonate with prospects.

4. Automate Follow-up Reminders and Manage Leads  

After outreach, set up automated follow-ups or reminders and track the lead in your CRM. Convex allows you to export lists of prospects, assign stages, tag coworkers, and assign dollar values to leads, offering light CRM functionality for lead management. Integration with CRMs like Salesforce or HubSpot ensures seamless pipeline tracking.

Case Study: How Convex Helped Comfort Systems Double their Business

Comfort Systems was already a multi-million dollar business when they found Convex. However, they were struggling with outdated sales processes that required extensive manual effort and were hindering their growth potential.

Newly hired sales reps required 6 to 9 months to fully ramp up, and even then, they spent two full days each week on prospecting and lead research to keep their pipeline filled.

After integrating Convex into its sales process, Comfort Systems saw immediate improvements. Convex’s platform allowed their team to quickly identify key buyers in their market and conduct targeted property searches. This dramatically reduced the time spent on manual prospecting, saving hundreds of hours and improving overall pipeline efficiency.

As a result, new hires now hit performance goals in just 2 to 3 months—down from the original 6 to 9 months. Even more impressively, Comfort Systems doubled their sales, making Convex an essential part of their growth strategy.

For more details, you can check the full case study here.

Frequently Asked Questions

• What leads can you buy? Email leads, business leads, direct dials, intent leads, LinkedIn leads, and more.
• Is buying leads legal? Yes, buying leads is legal but you must comply with data protection laws like GDPR.
• How much does buying leads cost? Commercial services leads vary depending on the lead provider and data points- but most commercial leads start just below $100 and go up to around $250
• Can buying leads guarantee sales? No, buying leads doesn’t guarantee sales – success depends on the interest level of the lead, the quality of the leads, your ability to deliver value in the sales process, and your follow up strategy.

Conclusion: Is Buying Leads Worth It for Your Business?

Buying leads for commercial services can be a quick way to get targeted prospects. But you must weigh the pros and cons, comply with data protection laws, and choose high-quality lead providers.

Before going all in on a large lead purchase, try to balance lead buying with sales intelligence software and other inbound and outbound lead generation techniques. Make sure your sales process is on-point with effective processes, lead scoring, and sales management tools like a CRM in place- these can help you optimize each opportunity and give you the best chance at converting leads into sales.

When done right, buying leads can supplement growing businesses, but you shouldn’t rely on them for 100% of your sales.If you’re ready to try a platform that was built specifically to generate commercial services sales leads, Schedule a demo of Convex to see how our tools can help you grow.