Advice for Employers and Recruiters
Risks to employers when paying less than $18 per lead for sales job applications
Anita JobbWhen employers in sales pay less than the typical $18 per application, they risk attracting candidates who lack the critical skills required to succeed in this field. Sales roles demand strong communication, persuasion, and negotiation abilities, and often experience in building client relationships and closing deals. By using lower-cost job boards or platforms, employers may receive a high volume of applications, but many candidates might lack these essential attributes. This forces hiring managers to spend more time filtering through unqualified applicants, slowing down the hiring process and reducing the overall efficiency of finding the right talent for driving revenue.
Additionally, paying below the market rate for sales applications can result in misleading recruitment metrics, where a high number of applications does not translate into quality leads. In sales, hiring the wrong candidate can significantly impact a company’s bottom line, as ineffective salespeople may struggle to meet quotas, close deals, or build long-term customer relationships. The cost of frequent rehiring, missed sales opportunities, and poor performance can quickly outweigh any short-term savings gained from paying less per application. For sales roles, investing in quality applications is crucial to ensuring that the right talent is in place to generate growth and success for the business.
Data gathered from hundreds of job boards shows that the effective cost per application when employers advertise a job is $18 if the job function is Sales. What quality and other risks do employers face if they pay a small fraction of the going rate to a vendor for these leads? Here is what 10 thought leaders have to say.
- Top Dollar for Top Salespeople
- Cheaper Leads Sacrifice Quality
- Low-Cost Leads Attract Unqualified Candidates
- Cheap Leads Waste Time and Resources
- Referrals and Industry Sites Yield Better Leads
- Avoid Low-Bid Recruitment Vendors
- Unqualified Candidates Increase Hiring Workload
- Invest in Quality Leads for Sales Roles
- Low-Cost Leads Hurt Brand Image
- Quality Leads Accelerate Sales Growth
Top Dollar for Top Salespeople
As a business leader, the question I ask myself in this situation is, ‘Do I really want the people who are responsible for bringing money into the organization to be the ones I got from a low-bid recruitment vendor?’ The answer, naturally, is no. Your salespeople need to be your superstars, which is why so many companies treat them as such and pay top dollar for top applicants. Sales roles often require highly driven, self-motivated individuals who can not only close deals but also build long-term relationships with clients. Paying a fraction of the market rate for leads could mean attracting candidates who see the role as just another job and lack the enthusiasm or interpersonal skills critical for success in sales.
Kate Kandefer, CEO, SEOwind
Cheaper Leads Sacrifice Quality
Opting for low-cost sales leads can hurt more than it helps. At CrownTV, we once paid below the standard rate for sales hires and noticed a 20 percent increase in underqualified candidates. This led to more time spent filtering applications and, worse, a 15 percent drop in performance from those we did hire. Cheaper leads often mean sacrificing quality, which can cost more in lost productivity. Focusing on solid, targeted leads upfront saves time and ensures stronger team performance in the long run.
Alex Taylor, Head of Marketing, CrownTV
Low-Cost Leads Attract Unqualified Candidates
Sales positions require not only specific skills and experience but also a high level of motivation and cultural fit. By choosing to pay a small fraction of the going rate to a vendor for job leads, employers may unwittingly attract less-qualified candidates, resulting in a pool of applicants who don’t meet the necessary skills or experience for the position.
Additionally, candidates sourced from low-cost leads may have lower commitment levels, which can be especially damaging in a sales environment where having the drive to succeed in a competitive environment is paramount. In the end, weakening the candidate pool by cutting corners can result in more frequent turnover as well as additional hiring and training costs.
Another risk to consider is that some low-cost vendors may not adhere to legal hiring practices, exposing the company to compliance risks. This can result in potential legal repercussions, reputational damage, and financial liabilities that far exceed the initial savings. Ultimately, while it may be tempting to save on recruitment costs, the long-term impact on the organization can be significantly detrimental. Prioritizing quality in sourcing will lead to stronger teams and a healthier company culture.
Damien Vieille, CEO, Instent Industries
Cheap Leads Waste Time and Resources
If you’re paying much less than the average rate, like under $18 per application for sales jobs, you’re probably sacrificing quality for cost. From what I’ve seen, this usually means you’ll get more applicants, but most of them won’t be a good fit. You’ll end up spending a lot of time sorting through unqualified candidates, which can be frustrating and time-consuming.
Another big issue is that cheaper vendors may not have access to the best job boards or networks where top sales talent is hanging out. So, you could miss out on strong candidates who would make a real impact on your team. Plus, these vendors might use less effective targeting methods, meaning the job ad won’t attract the right kind of applicants.
In the end, trying to save on the upfront cost usually means you’ll spend more later. You might have to re-run the job ad, or it could take longer to find the right person, which delays the productivity and success of your sales team.
Huang Xiong, Founder & Marketing Expert, BELTBUY
Referrals and Industry Sites Yield Better Leads
As a contractor, I know that cheap job leads often mean low-quality applicants. We once paid a vendor only $10 per lead for electricians. The applicants lacked experience and certifications, wasting our time. We terminated the contract.
Now we use referrals and advertise on industry sites, paying $25-35 per lead. Applicants are pre-screened, qualified, and have a culture match. While pricier, these leads fill roles faster with candidates that stay longer. It’s more costly to hire and train the wrong person.
In sales, poor hires damage relationships, reputation, and revenue. The risks outweigh any savings. My company partners with select recruiters who understand our needs. They source and screen candidates, only passing along promising options. Pricier but high caliber, we fill roles faster and retain top talent. The ROI is clear. Quality over quantity applies to job leads too. As a former construction manager and network engineer, I understand the risks of cutting corners to reduce costs. When hiring for a sales role, low-quality leads will waste time and damage relationships.
My company paid more for targeted leads from specialized recruiters. While pricier, their candidates were skilled and motivated. We filled roles faster and boosted revenue. The return on investment was clear.
In sales, poor hires impact client service and revenue. Their mistakes are costly to fix. I’ve seen companies grapple with damage control that could have been avoided by paying for quality leads.
Rushing to fill roles and slash costs is short-sighted. For sales, the risks outweigh any savings. My advice is to partner with recruiters who grasp your needs. Their leads are high caliber, worth the investment, and key to growth. Quality over quantity applies here. Save time and money by paying for the right candidates upfront.
Jimmy Hertilien, Senior Project Manager, Herts Roofing & Construction
Avoid Low-Bid Recruitment Vendors
I do not need to explain what every salesperson knows. They have seen many companies chasing after job leads that are not reliable. There’s a saying: “If it sounds too good to be true, it probably is.” In a market where sales applications usually cost $18, paying much less can often cause problems.
Just think about it: Everyone knows that great salespeople are the backbone of any business. When vendors sell leads for very low prices, they often cut corners. I have seen companies struggle with many people without experience, old résumés, and even fake résumés. Some vendors use bad methods, like resending old résumés or using automatic programs that post your job in the wrong places.
The real problem is not just lost money. It is about wasting time and missing good chances. Your HR team spends too long going through bad applications. Many of these applicants are great for other companies but not for you. This happens because your job ad is on fancy job boards, and the right people might not see it.
Also, your company might get a bad reputation. Candidates could think you use annoying recruitment techniques.
My advice? Be strategic and economical all at once when it comes to hiring. It might be satisfying to notice the difference in the proposed payment for an application amounting to $18 compared with one that only costs $2, but the downsides of getting cheap leads can be worse than you think.
Farrukh Muzaffar, CMO at Sony Ireland | Co-Founder Sustainability Jobs | Business strategist, Environmental and Sustainability Jobs
Unqualified Candidates Increase Hiring Workload
First, unqualified candidates are a major risk. Sales positions often require specific skills, such as communication, negotiation, and industry-specific knowledge. Low-cost vendors might pull from broader, less-targeted sources, resulting in applications from people who lack these critical qualifications. This increases the workload on hiring managers, who have to sift through a large pool of unfit candidates.
Another issue is a lack of motivation. Cheaper leads may come from candidates who are not genuinely interested in sales or the company but are simply applying to as many jobs as possible. This leads to higher interview dropouts and, potentially, higher turnover rates after hiring, as these individuals may not stay long-term.
Lead duplication is another concern. Vendors offering low-cost leads may not ensure exclusivity, meaning you could be competing with multiple employers for the same candidates, making it harder to close on top talent.
Lastly, poor targeting could result in geographic mismatches or candidates unfamiliar with the product or service you are selling, adding unnecessary delays to the hiring process.
Ultimately, paying less for leads may result in lower-quality hires and longer recruitment cycles, costing more in the long run.
Kenan Acikelli, CEO, Workhy
Invest in Quality Leads for Sales Roles
When employers pay significantly less than the standard $18 per application for sales roles, they face serious quality and reputation risks. In my experience at Thrive, I’ve seen clients attempt this approach, thinking they’re getting a bargain, only to encounter major issues later on.
One of our retail clients chose a vendor charging just $4 per lead for sales positions. Initially, they were thrilled with the high volume of applications. However, we soon discovered that about 65% of these applicants lacked basic sales experience or qualifications. Many had clearly used generic, mass-produced resumes or applied without reading the job description.
This approach proved costly in the long run. Their HR team wasted valuable time sifting through unsuitable applications. Worse, they made a few poor hires that didn’t work out, negatively impacting sales performance and team morale.
There’s also a significant risk to your employer brand when using low-quality lead sources—reputation spreads quickly. Being known for a subpar hiring process can make it much harder to attract top sales talent in the future.
I strongly advise investing in quality leads for sales roles. While it might cost more upfront, it saves time, money, and headaches in the long term. Focus on building relationships with reputable job boards and industry-specific recruitment agencies. In sales, your people are your most valuable asset. It’s worth investing in finding the right ones.
Aaron Whittaker, VP of Demand Generation & Marketing, Thrive Digital Marketing Agency
Low-Cost Leads Hurt Brand Image
Choosing to pay less than the typical $18 per application for sales leads comes with some notable risks. One of the biggest concerns is the quality of candidates—cheaper leads tend to come from lower-tier job boards, which means more unqualified applicants and wasted time sifting through résumés. You might also miss out on the best talent, as low-cost vendors typically have limited access to platforms that attract top-tier professionals. There’s also a chance of working with unreliable vendors who use spammy tactics or misleading job postings, which can hurt your brand image. In the end, what seems like a cost-saving move can actually lead to higher expenses due to inefficiencies and the potential for poor hiring decisions.
Tanya Lamont, CEO, Conversational
Quality Leads Accelerate Sales Growth
As an expert in sales operations and marketing, I have seen the risks of low-cost, low-quality leads. At one company, hiring a cheap lead source resulted in a 28 percent shorter sales cycle but a 54 percent decrease in customer payment speed—the leads were unqualified and damaged relationships.
Conversely, for another client, paying 20 percent more for pre-screened leads accelerated their growth. Their sales team could focus on high-potential prospects, reducing manual reporting time by over 5x. The higher cost was quickly recouped through increased revenue.
For sales roles, poor hires damage relationships, revenue, and company culture. They require excessive training and management and often leave quickly. I have found that partnering with specialized head-hunters, though initially more expensive, provides candidates that ramp up faster, last longer, and produce better results.
In the end, quality over quantity applies to lead sources. Especially for sales, the true cost of a poor match far outweighs any savings from cheap leads. The risks of rushing to fill roles just to cut costs are simply too great. For sales success, investing in quality leads and strong hires is the smartest strategy.
Ryan T. Murphy, Sales Operations Manager, Upfront Operations
