Lead generation has been a tried and true method for businesses and brands to build hot leads. Whether a business does lead generation on their own or outsources the task, a powerful lead generation strategy can serve up increased profits. However, many businesses are often not to sure about investing in lead generation.
This is a common theme, but once a business sees the value, they often praise it to colleagues, and even competitors. Why? Lead generation, when done right, can impact more your bottom line. Not only do new leads come in on a consistent basis, it frees up more time for owners and managers to accomplish other tasks to grow the business.
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The time to money ratio is important in business, and lead generation can impact this profit equation positively. There is, however, nothing new about lead generation on the surface. Only the technology and innovative ways to get more leads has shifted
The following can serve as a guide to why investing in lead generation is still essential for business growth, from methodology to cost. Let’s dive in!
How Exactly Does Lead Generation Work?
Let’s say you use a lead generation service to begin your journey into freeing up time by automating the lead finding process. Now not all of these service providers are created equal, so you want to ensure you do your due diligence. Once you identify a good provider, the process is fast.
The lead generation agency will take one of two routes to build your lead list. The first way is to develop a WordPress landing page for leads. This allows them to feature your brand, products, and/or services online and capture information from potential customers interested.
The second way is to partner with existing websites and have them do the lead leg work. This is essentially the same process as the first way, but without a dedicated landing page.
Once the landing page or website partnerships are set up, an offer of some kind is usually given to capture the lead. This could be a free whitepaper, discount code, or simply a subscriber email to opt in for emails and content updates. It really is that simple, when done correctly of course.
Why Do I Need to Capture These Leads?
This is a common, yet very good question. The lead process is not only good for the business wanting more leads, but it is good for consumers too. If a user lands on a lead generation landing page, and opts in for something, they are probably finding your products or services useful. This is a quality lead.
The other important benefit of this process is that the consumer has literally given you permission to make contact with them. This eliminates half the battle when it comes time to pitch the, and leads to a much higher conversion rates than cold pitching.
Other business benefits of lead generation include:
- You can control the product or service you want to deliver to potential clients
- There is data that allows you to see how much each lead is worth
- You can segment who sees your business, products, and/or services based on location, interests, employment, job title, etc.
- There are agencies that allow you to pay for leads netted, not a service as a whole (more cost effective)
- You have better control over your budget for lead gen
The Costs Associated with Lead Generation
Now getting down to cost. As mentioned before, not all lead generation is created equal, nor is the price. What you can expect to pay for leads varies from $20 to as high as $500. You also need to take into account the quality of leads that you are paying for
For example, if you are paying $200 or more for not great leads, you need to find a better lead generation agency, or revisit your in-house lead netting strategy. It also depends on the ROI parameters of your business. If one $500 lead can net your business $10,000 in business, that $500 lead has a huge value.
Understanding more about lead generation and how it can add value to your overall business development strategy is important. It is essential to find the right fit for your business, and think about the cost per lead as it relates to the ROI of each lead netted. Going the agency route is definitely one way to do it. But with a bit of practice, you can definitely get the benefits from your own lead strategy as well.