Marketing Madness

Home Warranty Leads: The Daniel Baldwin Lead Gen

Quick, name a film starring Daniel Baldwin!  Time’s up.  Can’t do it?  Don’t worry, neither can most people.  Truth is, though he’s still more famous than the average lead generation guy he’s still “that” Baldwin brother.

Every family has the underdog I guess.  For the family of warranty and extended service plans I’d say home warranty is the Daniel Baldwin.  If you know what home warranty covers or can name some of the bigger companies in the industry then pat yourself on the back.  Many Americans haven’t a clue what a home warranty is for or where to get one.

In the world of lead generation home warranty is a niche lead type but it has gained much more attention over the last two years than in previous ones.  One obvious driver for an increase in interest in niche lead types would be the relative lack of competition for leads.  From the consumer side interest might be growing due to an increase in home owners sitting on homes longer than they’d originally planned as well as other economic factors.

If your business is affiliate marketing or lead generation and you’ve never worked on a home warranty campaign then I can help you with some quick facts.

1.  Home warranty covers many different things inside and outside a home and the coverage varies from company to company.  Plans may cost as little as pennies per day or as much as several dollars per day depending on the plan provider and the depth of the list of covered items.

2.  The heavy hitter in home warranty is American Home Shield.  Over 40% of the consumers in the U.S. using home warranty are signed up with AHS.

3.  Depending on your traffic sources, lead quality, volume of leads, return policy, and available list of fields you could expect to sell your leads for well into the $35 range.  But keep in mind payouts are based on the lead buyer’s desired cost per acquisition and those tend to be all over the place.  Some lead buyers won’t go near the top price.

4.  Here’s a good example of the list of fields that are typical for home warranty lead generation offers.

If you have questions about this niche lead generation market I’ll be happy to help.  I think there is still a great deal of growth potential in home warranty leads and there are too few high quality lead producers and affiliates.  Since this is a product with fairly universal appeal (you only really need to be a home owner to qualify) it can work with many different types of email opt-in lists or other traffic channels.

 

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Kevin Wallach

Kevin Wallach has worked in Internet Performance Marketing for seven years. He currently runs Paradox M, Inc. based in Dallas Georgia. Specializing in lead generation he also has experience with list management, SMS advertising, and offline media. A self-proclaimed family guy, Kevin is also passionate about his professional life, writing, history, social and professional activism, and living a balanced life.

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7 Comments

  1. Sorry but warranty programs mean zip if the company isn’t around to back up their guarantee. Warranty programs, even those offered by major companies haven’t always lived up to their promises. Be wary and use due diligence. My question: Does the warranty company have a bond or insurer that will pay up if they fail? That would sell me!

    1. That’s one of the best questions you could have asked Nick. Many states do have regulation specifically for home warranty companies and in a lot of cases bonds are required. California is a good example and the bonds don’t come cheaply. The bottom line is the company, not the product itself. Some of the companies are well-established but many are truly fly-by-night. I’m not naming any names or even winking and nudging here. I’m just saying you’re right in the sense that buyers need to do their homework and make sure if the company they are signed up with goes out of business the warranty is still honored by the underwriter or the state the company is bonded in.

  2. when it comes to lead generation, if marketers started using facebook, instagram, youtube, and twitter more in addition to creating more rich content on their sites with an email newsletter form installed on their sites, there would be increased leads and not only leads, ‘quality leads.’

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