How much would you pay per lead in IM niche?

24 replies
I have been testing traffic sources and I can now generate double opt-in leads from the terms "Internet Marketing" fairly fast and cheap.

I know it depends on how you monetize your leads - so I am sort of asking people if you know the life time value of your client right now.

What do you currently pay per lead? (include your time cost if you use free methods).

How much would you pay to acquire qualified double opt-in leads in this niche?
#lead #niche #pay
  • Profile picture of the author lakshaybehl
    For me each lead is worth much more than just $5, but I never have to pay more than a dollr or two for one, so I marked $2-$5.

    But that is not what I would have agreed to pay if I had no other way to get leads. I'd give up to $7 per lead then.

    -Lakshay
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  • Profile picture of the author James Schramko
    Thanks Lakshay!

    That helps. It will be a little test of where people are up to with the sales funnel.

    If you take into account the cost of either time or money and effort to get qualified leads then you appreciate they are valuable.

    Some people could turn each one into hundreds of dollars and others would not be able to monetize them at all.

    I appreciate your answer.

    Regards

    James
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  • Profile picture of the author Thomas
    Hi James,

    I didn't give an answer because I'm not involved in any related area and, thus, have no need for such leads.

    However, I predict "less than $0.50" would be the true answer but "over $5" will probably come out on top in the poll, especially as a result of you saying that you're asking people if they know the lifetime value of their customer.

    I can't quite explain why I believe that - I could be wrong (I was once ) but I think I won't be.

    Tommy.
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  • Profile picture of the author James Schramko
    Ha ha !

    It is an interesting question. Ideally I want to know what people would pay today for unlimited double opt-in leads. Not when the sales funnel is built but right now.

    If you were buying leads right now what would you pay?
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  • Profile picture of the author Steven Carl Kelly
    Zero isn't on the list, so I suppose I'll have to choose "less than 50 cents" but that is wildly inaccurate.
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  • Profile picture of the author Brian Johnson
    Originally Posted by James Schramko View Post

    I have been testing traffic sources and I can now generate double opt-in leads from the terms "Internet Marketing" fairly fast and cheap.

    I know it depends on how you monetize your leads - so I am sort of asking people if you know the life time value of your client right now.

    What do you currently pay per lead? (include your time cost if you use free methods).

    How much would you pay to acquire qualified double opt-in leads in this niche?
    Hey James,

    First post for me here at the Warriors forum ...
    Anyway, really good question for me right now as I have
    been working on building my list and creating a solid
    mini course to offer folks.

    I have never done much with ppc but may have a go
    in 2009 ...I guess I would be willing to pay maybe
    50 cents or so per lead as long as the leads
    were from a quality source.
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    • Profile picture of the author James Schramko
      Originally Posted by Brian Johnson View Post

      Hey James,

      First post for me here at the Warriors forum ...
      Anyway, really good question for me right now as I have
      been working on building my list and creating a solid
      mini course to offer folks.

      I have never done much with ppc but may have a go
      in 2009 ...I guess I would be willing to pay maybe
      50 cents or so per lead as long as the leads
      were from a quality source.

      Welcome Brian!

      Great answer. I was prompted to ask this question because I see a lot of FREE traffic methods - but many people could BUY traffic if they work out they can make a profit faster!
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  • Profile picture of the author JayXtreme
    James..

    I hit $5+

    But there would have to be some sort of transparent view of the lead collection process... Well collected leads are worth hundreds if not thousands of pounds.. but if they aren't well collected and qualified then I wouldn't buy them..

    I can generate my own for a good price and I know how and where they are qualified... so I would have to see this too if I was going to buy some

    Peace

    Jay
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    • Profile picture of the author James Schramko
      Originally Posted by JayXtreme View Post

      James..

      I hit $5+

      But there would have to be some sort of transparent view of the lead collection process... Well collected leads are worth hundreds if not thousands of pounds.. but if they aren't well collected and qualified then I wouldn't buy them..

      I can generate my own for a good price and I know how and where they are qualified... so I would have to see this too if I was going to buy some

      Peace

      Jay
      Great answer Jay X

      I am talking about the same methods and sources you would use - targeted traffic into a relevant opt-in and they stick around after that etc...
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  • Profile picture of the author John Taylor
    I'm currently paying $0.78 per lead. That's the net
    cost of a lead that stays on my list for at least 7
    days.

    John
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    • Profile picture of the author James Schramko
      Originally Posted by John Taylor View Post

      I'm currently paying $0.78 per lead. That's the net
      cost of a lead that stays on my list for at least 7
      days.

      John
      John thank you !

      Exactly what I am talking about - you know your metrics and you can adjust your marketing to gear for that value.

      Do you think we buy traffic at the level we set ourselves or do we pay the limits set by the opportunity of our sales funnel at any one time?
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      • Profile picture of the author John Taylor
        Originally Posted by James Schramko View Post


        Do you think we buy traffic at the level we set ourselves or do we pay the limits set by the opportunity of our sales funnel at any one time?
        James,

        I work within clearly defined budgets. The cost of a lead
        isn't the only measure. As you'll already know, the quality
        of the lead is also important.

        People talk about the lifetime value of a customer, yet few
        people track the original source of their customers.

        John
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        • Profile picture of the author JayXtreme
          Originally Posted by John Taylor View Post

          few
          people track the original source of their customers.
          This is what separates things IMHO.. this is vitally important

          Peace

          Jay
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          Bare Murkage.........

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  • Profile picture of the author James Schramko
    Thanks Faxinator and John,

    Yes - I noticed in my split testing the results of the control ad would change depending on the source of traffic at the time.

    The other thing is it can take some time to see the real value of a client.

    Food for thought!

    Thank you guys.

    Just to be clear to - I don't plan on selling my leads - I am trying to formulate:

    a) What is an IM lead worth to the average IM'er
    b) What level of metrics awareness are out there currently
    c) If people who only get free traffic now will they re-consider their options...
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  • I think a little more clarification on the term "lead" would really help people.

    When I think of "lead" as an opt-in subscriber, then generally they are worth .50-$2 (more toward the .50 cent range) for me, in the beginning anyway.

    When a lead has become a proven and repeat buyer, that value quickly shoots up to $50-100 to me.

    When a lead forgets small time purchases, and expresses interest in one on one coaching, that lead could easily be worth $1000+ to me. I'll gladly pay $600+ per IM lead that has expressed interest in a coaching program.
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    • Profile picture of the author pjs
      Originally Posted by Christopher R Everson View Post

      I think a little more clarification on the term "lead" would really help people.

      When I think of "lead" as an opt-in subscriber, then generally they are worth .50-$2 (more toward the .50 cent range) for me, in the beginning anyway.

      When a lead has become a proven and repeat buyer, that value quickly shoots up to $50-100 to me.

      When a lead forgets small time purchases, and expresses interest in one on one coaching, that lead could easily be worth $1000+ to me. I'll gladly pay $600+ per IM lead that has expressed interest in a coaching program.
      This is a good clarification. Some coaching programs buy leads (buyers) from other marketers and the going rate is roughly 20% of what they bought.

      So if you are selling a $97 product you can sell the lead for roughly $20 each buyer (lead) you provide. Of course, this isn't exactly ethical if you're customers don't know you will be passing their information to another person. It's still done 'under the table' quite a lot.
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  • Profile picture of the author LegitIncomes
    This is an interesting question.
    I'm getting ready to sell one of my IM sites, and with this site, it has approx 1600 opt in subscribers...those that have actually purchased a product, not just opted in to a free newsletter. as well as approx 6k name/email/address leads of those who have purchased an IM product over the last 2 years or so.

    I'm really not sure what I should price it at...
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  • Profile picture of the author TE2
    James - define "Qualified".

    Are they opportunity seekers (lookers) or opportunity buyers (previous purchaser) of IM products?

    John
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  • Profile picture of the author James Schramko
    Thank you Christopher for that important distinction. I was thinking of an opt-in subscriber in the Internet Marketing Niche at the early phase - like at the thank you page point.

    They don't have to be hyped into subscribing - just a target offer and they stick around historically for at least five emailings.

    So I will say - a lead who has opted in to an internet marketing list and is likeley to stay there for at least a while.

    Many will of them go on to buy as the relationship grows. I think the number you mentioned is interesting.

    The more they buy the more the leads are worth.

    I like the percentage rule of pjs - very good metric - that is something I will work on too.

    (I think a few of the under the table guys are getting caught now. I have use an indicator when I subscribe to new lists to detect this).

    My premise when I started out that $1 per opt-in lead generated from a thank you page offer would be about the value. It seems this might be close.

    Nearly half the poll results would pay less than 50 cents - that means they are very good at generating leads or they have not developed a way to monetize the relationship?
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