Lead generation business model

NorconMarketing · Joined: 10 Mar 2008 Posts: 63

For most organizations, lead generation is a hit-or-miss affair. Yet if you look at businesses that are prospering they understand that
an effective lead genaeration process is the life blood of an organizations sales engine. These organizations understand that effective lead generation is a process not a one time event.

One of the best examples of the effectiveness of the lead generation business model is the pay per click advertising model which is now prevalent online. Currently the largest search engines allow advertisers to bid for one click of traffic which is organized by keyword category.

A few years back the most expensive keyword on the internet was "mesothelioma lawyer." This terms cost upwards of $120 per click as lawyers interested in large class action lawsuits against asbestos manufacturers were bidding for visitors to arrive at their websites.
Although this amount might seem ludicrous to the uniformed, let's do the math. Let's assume that only one out of 200 visitors who visited the website became a customer of the law firm. This means that the law firm paid over $24,000 for the traffic. However if through tat one customer they could win a multi million dollar cash settlement the question needs to be asked was the lead generation campaign worth it?

Lead generation is vital to all businesses. The money spent on lead generation is wasted unless the leads are managed and monitored to ensure a return. This is referred to as the conversion rate. Effective marketing organizations understand that lead generation is the bridge between marketing and sales.

Here are some ideas that can prove vital to your lead generation strategy:

1) Work with a direct mail marketing company who has many years of experience in purchasing lists for your lead generation campaign. These companies are invaluable in being able to collate hard to find data and information.

2) Make sure that you have a plan and process in place to effectively follow up with all leads that are generated. Many companies like to follow up by phone exclusively. Other companies rely on direct mail. The important thing is that you track the conversion rate of your campaign.

3) Verify with your lead generation merchant that if certain leads are not legitimate that they will refund or replace those individual elements.

4) Look at the big picture. If you are purchasing a list for $1500 and it generates $20,000 of revenue for you focus on that fact.
Often beginners who purchase direct mail marketing lists get frustrated by low conversion rates on their offers.

5) An experienced direct mail marketing company can tell you in advance the responsiveness that certain lists have exhibited recently. Study what the list you are considering communicating with has purchased in the recent past. A great resource in this regard is the Standard Rate Data Service.

6) If at first you do not succeed be willing to change your offer and approach. The mailing list is very important but equally important is your offer and message.

I hope you can implement these factors effectively in your business and make lead generation an important component of your companies sales and marketing process.