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You are here: Home / Archives for pay per lead

ScamWatch: AI-Powered Fake Leads: The Next Big Scam?

Last Updated: March 3, 2025

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We’ve all seen AI technology evolve at an insane pace, sometimes for the better, sometimes… not so much. AI customer service bots, Google’s AI making restaurant reservation calls, and even deepfakes, have become normal. But what’s the next scam we should be watching out for?

Here’s a prediction: AI-generated fake leads.

The Rise of Fake AI Leads

Right now, plenty of lead generation companies sell small businesses “qualified leads.” Some are legit, some… not so much. But what if scammers took this to the next level?

Imagine a HomeAdvisor- or Thumbtack-style business that promises to connect you with paying customers, but those “customers” don’t actually exist. Instead, AI-generated voices call you, ask the right questions, and sound just human enough to make you think it’s a real lead. You talk to the “lead” for a few minutes and it either fizzles out, you’re given a brush off like “I have to talk to my husband about it,” or even worse, you book a completely bogus appointment. You are then charged for this lead, regardless of the outcome.

And here’s the real kicker: Even legitimate lead-gen companies could be tempted to do this. If just 1 in 10 leads were AI-generated fakes, they increase revenue by 10% and it’s almost entirely profit! After all, they don’t get paid when you land a customer, they get paid when you buy a lead. See the problem?

At Prospect Genius, we’ve always avoided business models where our success isn’t directly tied to our clients’ success. We believe in (and harp on) aligned goals. And this is why it’s so important for small businesses to stay ahead of potential scams.

How to Protect Yourself

Since this isn’t a scam that’s happening yet (that we know of), the best thing you can do is prepare. Here’s some suggestions:

1. Track Everything

If you’re buying leads, you need to know which ones are actually turning into paying customers, not just which ones feel productive. A campaign might seem busy, but if it’s not bringing in real revenue, it’s not working.

Here’s how to track your leads effectively:

  • Use a metered phone number like our CallTrax to track and record inbound calls from each campaign.
  • Implement PhoneSwap to automatically swap phone numbers on your website, so you can segment data based on where leads are coming from.
  • Review your call recordings—if something seems off, you’ll have proof.

A major bonus of using CallTrax? Spaminator technology. It blocks known spam numbers, saving you time and keeping bogus calls from clogging up your pipeline.

Why Tracking Matters More Than Ever

Now is the time to establish your baseline numbers, before AI scams start creeping in. If you suddenly notice a 10–20% shift in your metrics, that’s a red flag. Being proactive now will make it easier to spot suspicious activity later.

For lead-gen campaigns, make sure you’re tracking:

  • Average leads received (per day, week, or month)
  • Close rate (percentage of leads that turn into paying jobs)
  • Average revenue per completed job
  • Overall cost per lead
  • Total cost per closed job (this one’s key!)

Most businesses focus too much on cost per lead, but what really matters is cost per completed job. It’s not just the price of the lead, it’s the total amount spent on all leads, plus the cost to fulfill the jobs you booked, divided by the number of closed jobs.

For example:
A $20 lead might actually cost $100 per completed job once you factor in the big picture. That changes the way you evaluate lead-gen campaigns, and it’s exactly why tracking every step of the process is so important.

2. Trust Your Gut

AI voices are getting better, but they’re still not perfect. If something feels “off” about a call—maybe they respond too quickly, avoid answering direct questions, or use strange phrasing, take a closer look.

If a company can’t provide real proof that their leads are legitimate, walk away.

The Bottom Line

AI is changing the game for businesses, but it’s also creating new ways for scammers to take advantage of hard-working people. Fake AI leads might not be everywhere yet, but it’s only a matter of time.

Stay smart, stay skeptical, and most importantly—stay in control of your marketing.

HomeAdvisor: Helping Large Companies Crush Small Ones

Last Updated: December 22, 2014

multi-tasking man being stepped on by a shoe
Are you using HomeAdvisor to locally market your appliance repair company? You’re joined by hundreds of other nearby appliance services, many of which are at a huge disadvantage. You’ve probably gotten this feeling already—that the game is rigged in favor of larger companies with greater resources—and we’re here to confirm your suspicions. HomeAdvisor is bad for small businesses like yours.
Let’s start off with the most obvious pain point: the speed at which you’re forced to respond to leads. By now, you’ve realized that the only way to be successful on HomeAdvisor is to respond immediately to any and all leads that come your way. However, as a small, one- or two-man operation, that means you have to balance your work with answering the phone and hunting down leads. As you know firsthand, it’s awfully difficult to answer the phone when you’re already on another job with your hands inside a dishwasher or squeezed behind a refrigerator. Frankly, it’s unrealistic for a small appliance repair outfit like yours to land these jobs unless you happen to be free at the moment the call comes in. This is where big businesses get a huge leg up on you.
While this unrealistic demand for immediacy is enough of an obstacle, there’s another major problem with HomeAdvisor: the cost. At the start of your program, you agree to pay a certain amount per lead. But based on the feedback we’ve heard from many of our clients (who are small business owners like you and former HomeAdvisor customers), leads are often shared with as many as five to ten other businesses. You probably already had a feeling that the odds were stacked against you, but let’s do the math: If leads are shared with five different businesses, then that means you have a one-in-five chance of closing each lead. So, if you think about it, you’re actually paying five times as much for every lead you finally do close. On top of that, we’ve heard reports from our clients that HomeAdvisor would occasionally charge them far more than what they were told they’d be charged per lead. Has that ever happened to you? Clearly, HomeAdvisor is rigged in favor of big businesses with big budgets, because most small companies like yours are hurt by such an expensive, unpredictable investment.
But that’s not even the most frustrating part, is it? You know that even when you do respond to a lead in time, there’s a significant chance that the prospect on the other end is looking for a service that you don’t even provide! That’s because HomeAdvisor is fundamentally incentivized to send you as many leads as possible, even if they’re barely relevant to your company. The reason for that is simple: The more leads HomeAdvisor sends you, the more money it makes. Since HomeAdvisor will still charge you for a bad lead, you’ll not only be taking time away from work to track it down, but you’ll actually be losing money on it, too. Again, big companies might not have a problem with this, as they have plenty of room in their budgets. You, on the other hand, really feel the consequences of HomeAdvisor’s poorly designed services.
It’s no wonder HomeAdvisor has a one-star rating on ConsumerAffairs.com.
Prospect Genius took all of the above pain points into account when we created our lead generation program. We take great care to ensure that our goals are the same as your goals, that our success is dependent on your success. Unlike HomeAdvisor, our Core package uses SEO (search engine optimization) to generate leads and only requires a flat, monthly fee. We provide you with your own fully functional website and metered phone number. This way, when a prospective customer discovers your website or Google listing and dials that phone number, they will be calling you directly. You won’t have to go on a wild goose chase for leads that four or five other businesses are also hunting down. You can respond at your earliest convenience (although promptness should always be a priority) without worrying that you’ve automatically lost a job. Best of all, it doesn’t favor big businesses over small ones. Everyone has an equal shot at success.
You don’t need an “advisor,” you need a partner! Prospect Genius champions small businesses like yours. We offer a wide variety of online marketing tools that will match any budget. Go ahead and browse our advertising services—or better yet, give us a call for a pressure-free chat with one of our representatives! It’ll only take five minutes to figure out if we have products that make sense for your particular situation.
Stop working harder than you have to—and stop lining the pockets of a company that’s only helping your larger competitors get a leg up on you!
Call now at (800-689-1273).

Common Ways Businesses Sabotage Their Own Advertising

Last Updated: February 15, 2024

Way back in September, we discussed how you can figure out which form of online advertising best meets your company’s needs. Then, in October, we reviewed the traits you’ll want to look for in a provider. Now that you’ve found the right program and the perfect provider for the job, a successful advertising campaign is yours to lose.
Here are the ways many business owners wind up unintentionally sabotaging their own online advertising campaigns.
Man about to topple house of cards

How to Ruin SEO

Hire more than one advertising company at the same time. The advertisers will counteract each other’s work, you’ll likely ruin your web presence, and you’ll be paying twice as much. To cause even more damage, don’t tell your advertisers you’re working with another company. See also: For SEO Companies, Two’s a Crowd.
Post fake reviews. Google, along with most online business directories, can detect when you’re posting an anonymous review from your own computer. You’ll get flagged as spam.
Post reviews from locations far away from your listing’s IP address. If you’re a local service provider and you have customers post reviews from distant locales, search engines and most directories will find that suspicious, leading to a penalty.
Tinker with your Google Maps listings. If you want to get flagged by Google, just keep changing information on your Maps listing. Google will detect random changes coming from a second IP address and will most likely penalize you.
Don’t send your PINs and log-in info to your provider on time. Instead, you can forget to call your account manager with the PINs that Google and Bing send you, preventing your provider from completing your listings’ authentication process (which obviously prevents your campaign from performing).
Use a fake address on Maps listings. Whether it’s Google or Bing, you can try using a fake address that places you in a prominent service area—but only if you want to get caught and have your listing suspended.
Don’t use a consistent business name from site to site. To confuse search engines and dilute your campaign’s potency, use different variations of your business name on various directories and listings. Even differing punctuation and spelling can affect your web presence.

How to Ruin PPC

Search for your own ads frequently. Doing this will drive up your ad group’s costs (due to high volume impressions and low click rates), so you’ll be causing yourself to pay extra for the exact same services.
Click on your own ads frequently. High click rates will raise the perceived value of your ads and therefore your ad costs. Again, you’ll be causing yourself to pay more without any actual increase in lead generation.
Don’t utilize the reporting tools and performance trackers available to you. Prospect Genius offers a Client Portal with a number of tracking features, and many other advertising companies offer certain tracking as well. But don’t use them if you want to ruin your PPC campaign. When you want to check on your campaign’s performance, just keep searching for and clicking on your own ads. That’ll do the trick.

How to Ruin Local Directory Listings

Purchase Facebook “Likes” and Twitter followers. Having a large number of followers on Facebook and Twitter may look nice to newcomers at first glance, but it’s quite transparent and ultimately does nothing for your web presence. In fact, Facebook is cracking down on fake accounts, so if your fan base is full of them, then you’ll soon feel the repercussions.
Post fake reviews. To repeat what we said above:  Most online business directories can detect when you’re posting an anonymous review from your own computer (thanks to your IP address). Usually you’ll get flagged as spam; in the case of Yelp, those reviews will be completely filtered out before they even make it to your page.
Tinker with your company contact info on Facebook. This will be confusing not only to your fans, but to search engines as well. Facebook and Bing are actually connected, so changing your company info on Facebook could wind up impacting your performance on Bing.

How to Ruin Pay-Per-Lead

List your company multiple times on the same directory with slightly varied information. Business owners might try signing up for the same pay-per-lead directory multiple times, whether accidentally or on purpose, which only leads to confusion for consumers. Plus, you could wind up paying to receive the same lead twice.
Use your paid phone line in your contact info on other sites. If you provide your contact info to sites like the Better Business Bureau, Yelp, or Facebook, use your paid phone number. This way, you’ll pay your directory service for any calls that come through that line, even if the leads weren’t generated by that service. Who doesn’t like paying extra?
Don’t complain about bad leads. Sometimes, PPL directories list you for the wrong services or the wrong location, and you’re sent leads that inherently can’t lead to an actual booked job. You still pay for these leads, so unless you ask for a refund, you’ll be paying money without getting any return. To keep it this way, don’t call the directory’s customer service to correct the error or get a refund.
Don’t answer customer calls or respond to e-mails. This way, you’ll still get billed for the leads that are sent to you without ever booking any jobs. It’s a lose-lose!

Don’t Get in Your Own Way

Obviously, this is all a tongue-in-cheek way of telling you what not to do once you’ve started an online advertising campaign. Being a small business owner is hard, and we want only success for you. We don’t want you to ruin or sabotage your campaign; instead, we want you to be your own strongest supporter. Let your advertising provider do all of the work that you hired them to do, and don’t interfere. By all means, keep in touch with your provider and ask for updates on your campaign’s performance and results. Just be careful not to cross the line between asking friendly questions and derailing your campaign’s chances of success.
If you’re unsure whether you’re doing the right thing, simply call or e-mail your provider and ask! You’ll both be grateful that you did.

Questions to Ask When You're Vetting a New Online Advertiser

Last Updated: February 15, 2024

woman thinking about questions to ask online advertiserLast month, we reviewed the differences between various online advertising programs and showed you how to choose which one best fits your company’s marketing needs. Now that you’ve selected the right online advertising approach for your company, we want to show you how to find the new online advertiser that will bring you the best results and most satisfaction.
When it comes to choosing a new advertising provider, there are inherent risks involved. You have no way of being 100% certain that any given provider is going to deliver on its promises. That’s why the best thing you can do is to manage and minimize those risks by asking all the right questions before you sign up. Here are a few things you should ask your new online advertiser, broken down by type.

Questions for SEO Providers

“Do you offer references from other clients?”
Because SEO is difficult to measure with hard data, it’s important for you to get firsthand opinions from a company’s current and former clients. Any company worth its salt will have no problem providing you with references that will validate its reputation. 
“Do you build a second website, or do you perform all SEO on my existing one?”
If you’re keeping an eye on your budget, this could be a very important question. Traditionally, SEO only used to be performed on a client’s existing website. Many business owners found this strategy too cost-prohibitive, so a more affordable SEO method was created, which involves the construction of a second, smaller site. This method is typically used in lead generation programs instead of traditional SEO projects. Essentially, in asking this question, you’re finding out what the company is focused on and how much you’re going to pay.
“What kind of content do you provide?”
If an advertiser does produce websites from scratch, this question determines whether they provide you with fresh, original content or they reuse a generic template with your company’s details filled in. Generic templates require less overhead, but fresh content will give your site a more personalized touch and help ensure you won’t face duplicate content penalties.
“What kind of campaign tracking do you offer?”
Does their program come with a way to track your campaign’s performance? Performance tracking is important so you can know whether you’re getting the highest ROI. For example, many providers offer metered phone numbers and e-mail addresses that keep track of incoming calls and messages. They may also offer reports that show your site traffic, search engine ranking, and monthly leads. The more tracking features available, the better grasp you’ll have on your campaign’s performance.
“What is your process for dealing with a difficult Google Maps listing?”
This question is more of a test. A common issue with certain black-hat SEO providers is their willingness to create duplicate listings when original listings prove difficult to claim. They may or may not admit to doing this, but if they give a vague or indirect answer, you can bet that they’re doing something they shouldn’t be. Unfortunately, their laziness or lack of scruples could cause you to get penalized down the road, so you need to be extra careful about this.
“What is your policy about returning access to Google listings and/or metered phone numbers?”
Again, this is a test. If you were to end your partnership with this advertiser, would they give you access to your Google listings and metered phone numbers? Their answer should be yes, so you can have ownership of all your accounts and experience as few headaches as possible.

Questions for Pay-Per-Click (PPC) Providers

“Is there transparency in how you handle PPC accounts?”
In other words, can you see where exactly your money is going? Some advertisers just send you a bill for your PPC; they don’t tell you how much of that money is going toward their paychecks and how much is going into your actual bids.
“How much input is welcome in the setup of my new PPC campaign?”
Often, business owners don’t have much of a say in the configuration of their PPC campaigns. Ask this question to see if you’ll have a say as to which ad groups you’re included in.
“What kind of campaign tracking do you offer?”
This is the same as for SEO: Performance tracking is important so you can know whether you’re getting the highest ROI. The more tracking features, the better.

Questions for Local Directory Providers

“How do you select the directories you use?”
In other words, does this provider have a vetting process they use to decide which directories they list clients on? Hopefully, the answer is yes. You need to make sure you’ll only be listed on high-quality, popular, valuable directories; meanwhile, you want to avoid the bad directories that will get you penalized by Google and other search engines.
“Do you use paid directories or only free ones?”
You want to be aware of any extra fees you’ll need to pay for local directory listings. Plus, if you’re paying a significant amount for these services, you want at least some of that money to be spent on getting you into directories that you can only get access to if you pay.
“Do you offshore your directory work?”
Does the advertiser shoulder the extra money to complete all of the directory work in-house by native English speakers, or do they send it overseas for cheap labor? While offshore directory work is less expensive, its quality rarely compares to that of an in-house team.
“What would happen to my directory accounts if our partnership were to end?”
Once you’ve had accounts all across the web created on your behalf, you’ll want to make sure you can access as many of them as possible if your partnership with the advertiser ends. You don’t want to have countless business listings out there with no way to control them. You’ll want to be sure that the listings created for you are not left with (potentially erroneous) information you have no ability to change. You’ll want to know whether the provider leaves everything as-is at the time of cancellation, pulls down your listings, hands over log-in information, or does some combination of those three. That knowledge may help you make better choices as the relationship winds down.

Questions for Pay-Per-Lead (PPL) Providers

“How many accounts do you share leads with?”
Many pay-per-lead sites share leads with multiple businesses at once. As a result, the job usually goes to the first business that responds. You have a better shot at closing leads if they aren’t being shared with lots of businesses, so you’ll want to know what that number is.
“If you send me a lead that doesn’t match my service offerings, will you credit my account?”
Sometimes, a lead comes in, you pay for it, and it turns out that the prospective customer is asking for something you don’t provide. In many cases, the provider will refund you for that lead if this happens. You’ll want to make sure they do offer credits or refunds for these scenarios because these kinds of mix-ups are bound to happen on occasion. You’ll also want to ask how these refunds arrive (i.e. whether they reimburse you or if they credit your account for another lead).
“Do I have to pay extra for prominent visibility?”
Some pay-per-lead services tell you that they’re free to join, but they don’t tell you that you have to pay for a premium option if you actually want to receive good leads. Make sure you know the real cost of doing business before you sign up.
The next time you find yourself talking to a prospective advertiser, remember to keep this guide handy. By asking these questions, you’ll be able to decide if they’re actually worthy of your business. Good luck!

How to Find the Online Advertising Program That's Best for Your Business

Last Updated: February 15, 2024

You’re a savvy business owner, and you know that becoming more visible on the Internet is vital to your company’s success. But the number of online advertising buzzwords is completely overwhelming. You’re supremely skilled in your own trade, but how are you supposed to figure out the best strategy for online advertising when your Internet skills don’t extend much past e-mail, Google, and Facebook?
We hear you. The world of online advertising is vast and confusing. That’s why we’ve put together a buying guide to help you choose the best online advertising program for your small business. We broke it down by the most common marketing concerns.

First, the Options

Before you can choose a strategy, you need to know what your options are. These are the most popular online advertising categories. Keep in mind that the most effective advertising campaigns will combine two or more of these:

  • SEO: Search engine optimization means designing a website that is deemed valuable and relevant by search engines, and then getting other websites to link to it. Optimized websites are more likely to rank higher in search engine results, and a higher ranking typically means you reach more potential customers. Prospect Genius’s Core program is centered on SEO.
  • PPC (pay-per-click): This is a paid advertising strategy wherein business owners pay search engines to promote their ads, which link to their website.
  • Local directory listings: Local directories are the Internet version of the yellow pages. Most will allow you to add your business information to their directory for free. As a result, one marketing strategy is to leverage all the possible local directories to drive traffic to your own website. Prospective customers visit these directories when searching for specific types of businesses, and hopefully they find and contact you.
  • Pay-per-lead: Pay-per-lead is a type of paid advertising provided by many directory listing sites. Most commonly, the directory sites make money by charging you for better positioning on the page, inclusion of bolded text, highlighted information, more screen real estate, etc. If a prospective customer contacts you, you are then charged for that call or e-mail.

Need for Speed

If you need to promote services quickly—whether it’s because you need an immediate boost in sales or you have a seasonal offering that’s only available for a short time—here are your best options:

  1. Pay-per-lead: Business owners can turn a pay-per-lead campaign on and off instantly, so it’s well suited for smaller time frames. Plus, this is the best solution for getting a large volume of leads in a short amount of time because the structure requires prospective customers to have higher purchasing intent, since they are actively making phone calls or sending e-mails. With a higher purchasing intent comes a higher conversion rate.
  2. PPC: Similar to pay-per-lead, PPC (pay-per-click) is an advertising campaign that can be turned on and off in an instant. Each visitor comes at a much higher price than SEO, but the ability to start and stop can be highly valuable in certain circumstances.

Limited Advertising Budget

In 2014, every business owner should be carving out room in their budget for an online advertising program. But the reality is that small businesses tend to have a little less wiggle room. So if you’re trying to keep your belt tight, here are some of the more budget-friendly options that will still get you results:

  1. SEO: Because SEO is an organic, systematic approach to online advertising, the overhead costs are fairly low. The majority of the costs are associated with the labor involved in building the website and promoting it on countless platforms across the Internet. Although SEO does require some patience to gain traction and momentum, the number of leads that comes in after a few months makes it all worth it.
  2. Directory listings: While directories are mostly free to use, your visibility is limited to just the directories on which you’ve listed your business. It’s a very low-cost advertising strategy, but it hinges on prospective customers coming to your directory of choice. However, if you do enough of them, the number of links directed at your website will increase and help your site rank better in the search engines.

Craving More Ownership

Do you feel like you’ve been burned by online advertisers before? There are a lot of disingenuous advertising companies out there, unfortunately, and they give the rest of us a bad rap. But we very much understand the desire to have ownership over your online advertising program as a result of a poor experience, so here are some options for you:

  1. SEO: Not every detail of SEO has to be dictated by the advertiser. If you want to hold on to your business’s existing website but still want the benefits of a professional SEO campaign, ask your advertiser about programs that keep your existing website in the middle of the campaign. As an example, Prospect Genius  offers a Bring Your Own Site (B.Y.O.S.) option for its Core program. This allows you to invest in your current site while our content specialists promote it as if it were one of our own design.
  2. PPC: While you can’t control the cost per click or the parameters set by the search engines, you can control your spending limit and the length of your campaign. If you do this independently, you can control which keywords are used. Even if you outsource this job to an advertiser, you have very little residual risk of long-term damage if they turn out to be dishonest. This makes switching from one advertiser to the next relatively easy and painless.
  3. Directory listings: The categories on local directories are typically preset and you’re only given a certain amount of space for your information, but you can create your own listings without necessarily even needing a website or advertiser. Be careful, though: Some directories are labeled “bad neighborhoods,” and they can actually hurt your rankings. Beyond the manpower required to type in all of your information hundreds of times, knowing which directories are helpful, which are hurtful, and which just don’t matter is where companies like Prospect Genius can really be worth the investment.

Proportionate Cost per Lead

If you feel like some forms of online advertising are costing too much per lead, then it’s time to do some math.
On the surface, PPC and pay-per-lead seem like smart investments because you’re only paying for the leads that you actually get. But how much do those leads really cost?
Let’s say you spend $50 per lead on a directory site. If you get 9 calls per month, that’s $450 you’re paying out of pocket. If you only book jobs from 33% of those leads, it actually costs you $150 per job booked. And if you’re only booking jobs that net you $100 profit, you are actually upside down by $50 per job!
The same goes for PPC, but you’ll get an even lower ROI because the conversion rate for clicks is significantly lower than the conversion rate for calls/e-mails. For PPC, getting 1 call from every 20 clicks is a very good ratio; then when you consider that something like only 33% of those calls result in jobs booked, you could be looking at a real cost of $300 per job (when you’re paying a seemingly low $5-per-click rate). When you pay for each lead, you will only ever make a fixed margin on each. There’s no opportunity for you to drive your per-lead cost down and your margins up.
On the other hand, if you pay a monthly fee of $300 for SEO (like our Core program) and wait patiently for a few months, you could wind up getting 20+ calls per month and saving lots of money. It’s just like buying a house versus renting one: It stinks to have to pay $40,000 up front on that down payment, but then you have the ability to earn a profit on that investment over time. If you rent, avoid the initial pain of the down payment, but you’ll pay more over time.

Getting Decent Results, but Want More?

Many business owners encounter a plateau in their online advertising. They’re getting a solid volume of leads per month, but they want more. This often has no reflection on the quality of services that their online advertising company is providing; rather, it just means that the particular service they’re using has been maxed out.
If this is something you’re dealing with, do some investigating. Find out if your advertiser offers other services that may complement the one you’re currently using. For instance, if you’re currently using SEO and finding that your volume of monthly leads has stagnated, then you might be interested in trying out a short PPC campaign to give your sales a boost.
Conversely, if you’ve been relying on paid advertising to bring links to your website or calls to your metered phone, you can try adding directory listings to the mix or even optimizing your site for search engines. Covering all of your bases and adding algorithmic value wherever you can is never a bad idea.

Effective, Fast, Cheap: Pick Two

Unfortunately, when choosing an online advertising program, you can’t have it all. If you want something that’s fast and effective, it won’t be cheap. If you want something cheap and fast, it won’t be very effective in the long run. That’s why you have to think long and hard about your company’s marketing goals before diving headfirst into a campaign. Do your research, and know that the specialists at Prospect Genius can guide you through the decision-making process should you need any help.

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