Free Leads vs. Paid Referrals: Understanding the Difference
Quick Answer
Free leads cost nothing and arrive through direct contact or Message button inquiries in My Inbox. Paid referrals cost $29-$395, arrive in the separate Leads Dashboard, and provide exclusive access to pre-qualified, verified prospects. These are completely independent systems – you should use both for maximum opportunity.
Overview
Heritage Web operates two distinct lead generation systems that work in parallel. Understanding their differences helps you allocate resources effectively, set appropriate expectations, and maximize your return on investment across both channels.
Side-by-Side Comparison
Feature | Free Leads | Paid Referrals |
Cost | $0 | $29-$395 per lead |
Dashboard | My Inbox | Leads Dashboard |
Source | Direct discovery | Intake forms |
Quality | Variable, unvetted | Pre-qualified, verified |
Exclusivity | None (shared) | Exclusive to you |
Contact Method | Message or direct | Phone/email after purchase |
Volume | Unlimited potential | Based on budget |
Response Required | Immediate | After purchase decision |
Spam Risk | Higher | Very low |
Conversion Rate | Lower | Higher |
Understanding Free Leads
How Free Leads Work
Discovery: Visitor finds you via search engines or platform search
Contact: They message you or call directly
Delivery: Messages appear in My Inbox instantly
Response: You reply at no cost
Conversion: Build relationship to convert
Free Lead Characteristics
Advantages:
Zero financial risk
Unlimited volume potential
Immediate contact possible
Builds organic relationships
No commitment required
Challenges:
No pre-qualification
Visitors contact multiple pros
Variable quality
Potential spam
Lower conversion rates
Best For:
Building initial client base
Testing market demand
Passive lead generation
Budget-conscious professionals
High-volume practices
Understanding Paid Referrals
How Paid Referrals Work
Submission: Client completes detailed intake form
Review: Heritage Web verifies within 24 hours
Matching: System finds qualified professionals
Notification: You receive preview (no contact info)
Purchase: You decide whether to buy ($29-$395)
Access: Get exclusive contact details
Paid Referral Characteristics
Advantages:
Pre-qualified prospects
Verified contact information
Exclusive access (sold once)
Higher conversion rates
Detailed client needs provided
Challenges:
Upfront cost per lead
Limited preview before purchase
Competition for best leads (24-hour sponsor advantage)
No refunds typically
Budget management required
Best For:
Established practices
High-value services
Selective client acquisition
Quality over quantity
Predictable lead flow
Critical System Distinctions
Different Dashboards
My Inbox (Free Leads Only):
Message button inquiries
Direct platform messages
Two-way conversation
No paid referrals ever
Leads Dashboard (Paid Only):
Purchasable referrals
Preview before buying
One-way until purchase
No free messages ever
Different Communication Methods
Free Leads:
Platform messaging available
Can reply through My Inbox
Email/phone visible based on listing type
Ongoing conversation tracking
Paid Referrals:
No platform messaging
Must call/email directly after purchase
Full contact provided upon payment
External tracking required
Different Notification Systems
Free Leads:
Email notifications only
Configured per listing
Up to 2 emails (free) or 6 (sponsor)
No SMS available
Paid Referrals:
Email notifications standard
SMS available for sponsors
24-hour priority for sponsors
Purchase reminders
Using Both Systems Effectively
Complementary Strategy
Free Leads provide:
Volume and discovery
Baseline opportunity
Cost-free testing
Market presence
Paid Referrals provide:
Quality and exclusivity
Serious prospects
Time efficiency
Higher close rates
Resource Allocation
Recommended Split:
70% effort on free leads (volume play)
30% budget on paid referrals (quality play)
Adjust based on conversion data
Track ROI separately
Avoiding Confusion
Keep in mind:
Same person could use both systems
Don't purchase paid lead if already contacted free
Track source for ROI analysis
Different response strategies needed
Important Notes
Systems never merge or interact
Cannot convert free lead to paid
Both systems available to all users
Sponsor status benefits both systems differently
Success requires understanding both
FAQs
Can the same person contact me through both systems? Yes, someone could message you directly (free) and submit a referral form (paid). You'd see both but only pay if you purchase the referral.
Should I focus on free or paid leads? Use both. Free leads provide volume at no cost, while paid referrals offer quality and exclusivity. Most successful professionals leverage both.
Why pay for referrals when I get free leads? Paid referrals are pre-qualified, exclusive to you, and have higher conversion rates. You're paying for quality, verification, and exclusivity.
Do free leads ever become paid referrals? No, they're separate systems. A free lead remains free. However, the same person could theoretically submit a paid referral request separately.
Which dashboard should I check more often? Check both daily. My Inbox for free messages requiring quick response, Leads Dashboard for new paid opportunities to evaluate.
Next Steps
Set up both My Inbox and Leads Dashboard
Allocate time for managing both systems
Track conversion rates separately
Develop different scripts for each type
Test which generates better ROI for your practice