How to Evaluate a Lead Data Provider

The lead data market is crowded and confusing. Hundreds of providers claim to have "verified" data, "accurate" contact information, and "fresh" databases. Most of them are licensing the same underlying data from a handful of aggregators and adding their own branding on top.

Here is how to separate the genuinely good providers from the commodity resellers.

Question 1: Where Does Your Data Come From?

The right answer is multiple primary sources with independent verification. The wrong answer is evasion, vague references to "proprietary databases," or any suggestion that they compile data from a single source.

Good providers combine data from:

• Business registries and public filings
• Web scraping and analysis
• Technology stack detection
• Job posting monitoring
• Social media profiles
• Direct verification (email and phone)

If a provider cannot clearly explain their data sourcing methodology, they are probably reselling someone else's data.

Question 2: How Do You Verify Email Addresses?

The right answer is SMTP-level verification performed close to the time of delivery. The wrong answer is "we verify our database regularly" (how regularly?) or "all emails are verified" (how and when?).

Ask specifically:

• Do you perform SMTP verification? (Not just syntax and domain checks)
• When was the email verified relative to when I receive it?
• What is your deliverability guarantee? (If they do not have one, the verification is not confident enough to stand behind)
• Do you flag catch-all domains?

Question 3: How Old Is the Data When I Receive It?

The right answer is verified within days of delivery. The wrong answer is any reference to "quarterly updates" or "monthly refreshes."

Data that was verified 90 days ago has already decayed 7-10%. Data verified 30 days ago has decayed 2-3%. Data verified within 7 days is as close to current as you can get.

Question 4: What Is Your Bounce Rate Guarantee?

The right answer is a specific number with a specific remedy. "97%+ deliverability, and we replace any bounced contacts" is a strong guarantee. "Our data is very accurate" is not a guarantee.

If a provider will not put a number on their deliverability rate, they do not trust their own verification. Why should you?

Question 5: Can I Get a Free Sample?

The right answer is yes, with no restrictions. Any provider confident in their data will give you a sample to test. If they want a contract before you see the data, that is a red flag.

At VerifiedByTed, we give you 10 free verified leads matching your ICP before you spend a dollar. We stand behind the quality because we can.

Red Flags

• No deliverability guarantee. If they will not guarantee it, it is not verified.
• Minimum contracts. Good data providers earn your business monthly. Lock-in contracts suggest they know you will want to leave.
• Per-seat pricing. You are buying data, not software. Per-seat pricing means you are paying for access to a database, not for verified leads.
• No sample available. If they will not let you test the data, the data is not good.
• "Millions of contacts" as a selling point. Volume is not quality. A provider bragging about database size is telling you they prioritize quantity over accuracy.