How to evaluate Canadian lead providers without getting burned.

Why this matters more than you think

Most dealers spend more on lead acquisition than they realize. A lot $50,000-$100,000 a year on leads, sees a 12-15% conversion rate, and ends up paying $200-$400 in lead cost per delivered vehicle. That's before you account for staff time chasing dead numbers, returned applications, and CRM cleanup.

Choosing the wrong lead provider doesn't just cost money — it costs months. A bad provider locks you in for 6-12 months, takes your data, sells the same leads to your competition next door, and leaves you with a CRM full of disconnected phone numbers.

Choosing the right provider, on the other hand, can transform your operation. Strong leads convert at double the rate of weak ones. Real exclusivity means your sales team isn't getting beaten to the punch. The right contract terms mean you can leave if it doesn't work.

10 questions to ask every lead provider before signing

Before any contract or trial, get clear written answers to these questions. If a provider hesitates on any of them, that's information.

1. Where do your leads come from? Affiliate networks, owned and operated websites, paid search, organic search, dealer referrals — each source has different quality characteristics.
2. Is each lead 100% exclusive to one dealer? If shared, how many dealers receive the same lead? In what radius?
3. What's your verification process? Manual QA, SMS verification, employment verification, address validation — get specifics on what's checked before delivery.
4. What's your return policy? Hours window, what counts as a returnable lead, how returns are credited (cash refund vs. account credit), maximum return percentage.
5. What's the minimum contract term? Month-to-month, 3-month, 6-month, annual? Termination clauses?
6. What's your typical dealer's conversion rate? Be skeptical of any provider claiming 30%+ as standard — that's exceptional. 12-20% is realistic for subprime.
7. What income and employment minimums apply to your leads? Some providers send everyone; others pre-screen for $1,800/month minimum and 3+ months employment.
8. What credit tiers do you cover? Subprime only? Subprime + near-prime? Live transfers?
9. Who's my account manager and how often will we talk? Weekly check-ins matter more than you think. Account managers who change every 2 months means you're being managed by a queue, not a person.
10. Can you provide 3 reference dealers I can call? Real ones, in your region, with similar volume to yours. Then call them.

Contract terms that actually matter

Most lead provider contracts are 4-10 pages of legalese. The terms that actually determine your experience are usually buried. Here's what to read carefully:

Minimum monthly commitment

Some providers require you to buy a minimum number of leads per month even if you don't want them. That's fine if your volume is steady, but it locks you in if seasonal slumps hit. Look for "no minimum" or "month-to-month with 30-day notice."

Return cap percentages

Most providers cap returns at 10-20% of leads delivered. Below the cap, returns are usually credited; above the cap, you eat the cost. Get the cap percentage in writing. Some providers put this in the small print at 5%, which is unreasonably low.

Pricing escalation clauses

Read carefully for clauses like "rates may be adjusted with 30 days notice." Some providers raise CPL aggressively after the first 90 days. Negotiate a price freeze for the contract term.

Data ownership

If you stop working with a provider, who owns the leads they sent you? In Canada, lead data ownership is usually clear (you bought it, you own it), but some contracts include clauses about data return or deletion that can be problematic. Verify you can keep your CRM data forever.

Exclusivity guarantees in writing

"100% exclusive" should be defined explicitly: exclusive to your dealership only, for what time period (forever vs. 30 days), in what geographic radius. Vague language here is the source of most lead-provider conflicts.

Red flags that signal you should walk away

• Refusal to provide references. Any reputable provider has 3-5 happy dealers willing to vouch. If they won't connect you, ask why.
• Conversion rate claims above 30%. For subprime, that's exceptional. Claims that high either mean the provider has cherry-picked one outlier dealer or they're inflating numbers.
• Pressure to sign quickly. "This pricing only good through Friday" is a sales tactic, not market reality. Real partnerships don't have artificial deadlines.
• No clear return policy. If they can't tell you in plain English what happens to bad-data leads, walk.
• No physical address listed. Lead providers operating from a P.O. box or with no verifiable office should raise questions about accountability.
• Inability to explain their lead source. "Proprietary technology" is not an answer. Real providers can explain their channels — affiliate networks, paid media, owned and operated sites.
• Long contracts with no out clause. 12-month contracts with no termination right except for breach are aggressive. Industry standard is 30-90 day notice.

The exclusivity question

Almost every Canadian lead provider markets some version of "exclusive" leads. The reality is more complicated.

True 100% exclusive means a lead is sold to one dealer, period. No re-sale, no time-delayed re-sale, no "same lead under a different name."

Geographically exclusive means exclusive within a defined radius (e.g., 50km from your dealership). Outside that radius, the same lead may go to other dealers.

Time-exclusive means exclusive for a defined period (24 hours, 7 days, 30 days), after which the lead may be re-sold or reactivated as an "aged lead."

Shared means the lead is sent to multiple dealers simultaneously. Cheaper, but conversion drops sharply because the customer is fielding calls from multiple competitors.

Be precise about which kind of exclusivity you're paying for. The price difference between true exclusive and shared can be 3-5x — make sure you're getting what you paid for.

Return and replacement policies

Even good providers send some bad data. The question is what happens when they do.

What counts as returnable?

• Disconnected or invalid phone numbers
• Wrong income or employment information
• Customer claims they never filled out an application
• Duplicate leads (same person submitted twice)
• Leads outside the agreed credit tier or geographic area

What's typically NOT returnable?

• Leads that don't answer the phone (the lead isn't bad — your follow-up may be slow)
• Leads that don't qualify for your specific lender
• Leads where the customer changed their mind
• Leads where the dealer didn't follow up within the contracted window

Return windows that matter

Industry standard: 24-72 hours from delivery. Some providers offer 7-day windows. Anything shorter than 24 hours is aggressive — you don't always have time to attempt contact within that window.

Testing a new provider safely

Before committing to a long contract, run a structured 30-60 day test:

1. Negotiate a no-commitment trial. 30 days, 50-100 leads, no minimum monthly. Most reputable providers will agree.
2. Track conversion separately. Code these leads in your CRM with a unique source tag so you can measure their conversion rate vs. your existing providers.
3. Assign your best closer. Don't test a new provider with your weakest staff — you'll get false negative results.
4. Track close ratio at 30 days, 60 days, and 90 days. Some providers send leads that age well; others don't.
5. Compare cost per delivered car against your existing providers. Don't compare CPL.

Final checklist before you sign

Most provider relationships work out fine. The ones that don't tend to share patterns — vague exclusivity language, unclear return policies, pressure tactics, references that don't exist. Spending two extra weeks on due diligence saves months of regret.