A lead replacement policy defines which delivered leads a vendor will credit or replace, and how. Common invalid-lead categories are disconnected or wrong numbers, duplicates, claimants outside the agreed area, claimants who already have an attorney, and leads that fail an agreed hard criterion. Get the definitions, the reporting window, and the evidence required in writing before launch.
Replacement policies are where most disputes between law firms and lead vendors happen. The pattern is familiar: a firm receives a lead it considers useless, asks for a credit, and the vendor disagrees about whether the lead qualifies. Neither side is necessarily wrong. The problem is almost always that the definition of a bad lead was discussed on a call and never written down, so each side is working from its own memory of what was agreed.
A clear, written replacement policy prevents most of those disputes before they start. It also makes vendors easier to compare, because the true cost of a lead depends partly on what happens when one turns out to be invalid.
What is usually covered
Most replacement policies cover leads that fail for reasons within the vendor’s control, where the lead did not meet the basic terms of what was sold.
Invalid contact information
Disconnected, wrong, or obviously fake phone numbers are the most common category. If a vendor verifies numbers before delivery, these should be rare, and the replacement policy should cover the ones that slip through.
Duplicates
The same person delivered twice within a set period, often thirty to ninety days, is usually replaced. Without this provision, a claimant who submits the same form twice can be billed twice.
Out of area
A claimant outside the states, counties, or ZIP codes your firm bought should be covered, since it was the vendor’s targeting that failed.
Already represented
A claimant who had an attorney at the time they submitted their information is usually covered, provided the vendor asked about representation as part of screening. The timing matters: a claimant who hires another firm after your team fails to reach them is a different situation.
Fails a hard criterion
A lead that fails one of the agreed threshold criteria, such as a workers’ compensation lead where the claimant was not injured at work, or a motor vehicle lead where the claimant was not actually in an accident, should be covered, because it is not the product that was sold.
What is usually not covered
Most policies exclude outcomes that depend on the firm’s own process or judgment, and it is worth understanding these exclusions before you sign.
The claimant did not answer
If the phone number was verified and correct, reaching the claimant is usually considered the firm’s responsibility. A lead that goes unanswered after two attempts is typically an intake issue rather than an invalid lead.
The claimant chose another firm
This is especially relevant for shared leads, where several firms are calling the same claimant. The vendor delivered what was promised; another firm simply reached them first.
Your firm declined the case on the merits
Case evaluation belongs to the firm. A lead that met every agreed criterion but that your attorneys decided not to pursue is not an invalid lead.
Soft preferences
Criteria that were discussed but not written into the agreement as requirements are usually not grounds for replacement. This is the most common source of disputes, and the strongest argument for writing criteria down in full before launch.
Terms to agree in advance
A complete replacement policy covers four points, and each should be in writing.
Reporting window
How many days your firm has to report an invalid lead after delivery. The window needs to be long enough for your intake team to make several contact attempts before deciding a lead is invalid.
Evidence
What your firm needs to provide to support a replacement request: a call recording, a note in your CRM, or a disposition reason. Agreeing on this in advance means requests can be processed quickly.
Remedy
Whether an invalid lead is replaced with a new lead, credited against a future invoice, or refunded, and how quickly the remedy is applied.
Caps
Whether there is a maximum percentage of leads that can be replaced in a given period. Caps are common and not unreasonable, but they should be set at a level that reflects realistic invalid rates.
Why this matters for comparing vendors
A cheaper lead with no replacement policy can easily cost more than a more expensive lead with a clear one. If one vendor’s leads cost less but a portion of them are invalid with no recourse, the effective price of the valid leads is higher than the quoted figure. When you calculate cost per retained case, include expected replacements and credits so that the comparison between vendors reflects what you actually pay.
Frequently asked questions
What is a normal lead return window?
Many vendors allow a few days to a couple of weeks. What matters most is that the window is written down and long enough for your team to attempt contact.
Should I get a credit if a lead doesn’t answer?
Usually not, if the phone number was verified. Non-response is typically treated as an intake issue rather than an invalid lead.
Written by the IronFlow Legal team
IronFlow Legal builds exclusive lead generation campaigns for law firms across workers’ compensation, personal injury, slip and fall, employment, SSDI, and lemon law. Questions about anything in this article? Call (251) 233-4916 or send us a note.