Anyone having luck with pay per sale lead gen (I have an angle that may work)

10 replies
Hi sportsfans,

As the title says, is anyone having any luck with pay per sale lead gen, ie., charging a percentage of the sale?

Currently, I'm getting some success - albeit with not huge margins - selling leads generated by PPC. I'm charging per bona fide phone lead generated.

My thinking is that I will earn more overall by doing this, than pay per lead, as there is more risk on me. It's also an easier sale, as when selling pay per lead, what prospects say to me a lot, is "Can I just pay you when I sell something?"

The obvious issue is trust. Trusting they are being honest when they make a sale, and also with the amount.

I don't want to use calls for this, I want to use forms. Do I take the calls myself and get them to the quoting point, before then speaking with the client, and then going back and closing myself?

Any experience? Any ideas?

Thanks folks.
#angle #gen #lead #luck #pay #sale #work
  • Profile picture of the author tryinhere
    It may seem that your getting paid more by going pay per sale, for example I may get depending on product say $250 for a lead that converted to a sale.

    It just sums / lets say I sold raw leads @ $25 regardless and the company converted at 1 / 10 then I would still make the $250 regardless of how it was done.

    Where the trick here is lets say you were selling leads at $25 and went to a pay per sale option at $250, but now you rely on a sales team that converts at higher than 10% or you are now loosing money, and the outcome is out of your control.

    Collecting your dues regardless of relying on the end outcome may be better unless your confident it is a well trained sales team your working with.
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    • Profile picture of the author Scott Stevens
      Originally Posted by tryinhere View Post

      It may seem that your getting paid more by going pay per sale, for example I may get depending on product say $250 for a lead that converted to a sale.

      It just sums / lets say I sold raw leads @ $25 regardless and the company converted at 1 / 10 then I would still make the $250 regardless of how it was done.

      Where the trick here is lets say you were selling leads at $25 and went to a pay per sale option at $250, but now you rely on a sales team that converts at higher than 10% or you are now loosing money, and the outcome is out of your control.

      Collecting your dues regardless of relying on the end outcome may be better unless your confident it is a well trained sales team your working with.
      Thanks a million. Solid advice.
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      Skochy - The Musical Salesman

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  • Profile picture of the author MaxwellB
    There is a company that does this if you search on google for pay per sale leads. I think it's weak personally, they max the commissions at 250 or 500 depending on the service so they don't really get the benefit of earning a lot more for a close.

    At the end of the day how hard is it to get people to buy calls? It's not hard I do it all the time, use their competitors to your advantage. I love this one technique and I have to give credit to KenMichaels because he posted it recently.

    Create a map, like a google map with a blue pin for the prospect your trying to sell, and red pins for their closest competitors within say 10 mile radius. Then send an email that essentially says

    Here you are and here are your competitors, we're getting 38 calls per month in your area looking for roofing companies from our websites online and we're looking to work with one of you to buy these calls on a per call basis. First come first service, I will work with one of you today, Give me a call if it should be you.


    Obviously in more elegant terms but that's the idea.

    When I tried to sell pay per sale it was like pulling teeth to get a small $500 deposit, because they just don't believe it. Much easier to sell per call and make more money.
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    • Profile picture of the author shockwave
      I agree with Tryinhere and MaxwellB.....sell those calls if you can. You can't trust that their sales teams can close a sale. You are right about the trust factor OP - and I don't trust contractors any farther than I can throw them.

      Besides, if they can't deposit at least the equivalent of say (3) leads (lets pretend roofing leads/$50 per call), then they aren't the kind of contractor you want to deal with anyway. The will be a pain in your ass.

      1. Use something like CallFire to track and record the calls.
      2. Ensuring them up-front that you won't charge for garbage calls (other SEO/LeadGen calls, Advertising...etc) is always a good step to earning their trust. Since you are recording the calls, you can both listen to the recording to verify/dispute the lead quality.
      3. Let them know that you are there to help MAKE THEM MONEY, but you aren't there to sell for them - that's their job.

      All that being said, I've read of a few people who prefer the percentage of sale approach and seem to do quite well. But in most of those cases, it appeared they already had a good relationship with the contractor.
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      • Profile picture of the author Scott Stevens
        Originally Posted by shockwave View Post

        I agree with Tryinhere and MaxwellB.....sell those calls if you can. You can't trust that their sales teams can close a sale. You are right about the trust factor OP - and I don't trust contractors any farther than I can throw them.

        Besides, if they can't deposit at least the equivalent of say (3) leads (lets pretend roofing leads/$50 per call), then they aren't the kind of contractor you want to deal with anyway. The will be a pain in your ass.

        1. Use something like CallFire to track and record the calls.
        2. Ensuring them up-front that you won't charge for garbage calls (other SEO/LeadGen calls, Advertising...etc) is always a good step to earning their trust. Since you are recording the calls, you can both listen to the recording to verify/dispute the lead quality.
        3. Let them know that you are there to help MAKE THEM MONEY, but you aren't there to sell for them - that's their job.

        All that being said, I've read of a few people who prefer the percentage of sale approach and seem to do quite well. But in most of those cases, it appeared they already had a good relationship with the contractor.
        Gotcha, thanks Shockwave. Looks like I'll be sticking with pay per call for the meantime then.
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        Skochy - The Musical Salesman

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  • Profile picture of the author shockwave
    Don't know if you need it or not, but here's a generic LeadGen Agreement form you can modify however you like.

    http://www.warriorforum.com/offline-...-template.html
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    • Profile picture of the author Scott Stevens
      Originally Posted by shockwave View Post

      Don't know if you need it or not, but here's a generic LeadGen Agreement form you can modify however you like.

      http://www.warriorforum.com/offline-...-template.html
      Oh thanks a million, Shockwave, nice touch. Proper gent. Saved to my Dropbox.
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      Yours in prosperity,
      Skochy - The Musical Salesman

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  • Profile picture of the author Robscom
    Originally Posted by Scott Stevens View Post

    Hi sportsfans,

    As the title says, is anyone having any luck with pay per sale lead gen, ie., charging a percentage of the sale?

    Currently, I'm getting some success - albeit with not huge margins - selling leads generated by PPC. I'm charging per bona fide phone lead generated.

    My thinking is that I will earn more overall by doing this, than pay per lead, as there is more risk on me. It's also an easier sale, as when selling pay per lead, what prospects say to me a lot, is "Can I just pay you when I sell something?"

    The obvious issue is trust. Trusting they are being honest when they make a sale, and also with the amount.

    I don't want to use calls for this, I want to use forms. Do I take the calls myself and get them to the quoting point, before then speaking with the client, and then going back and closing myself?

    Any experience? Any ideas?

    Thanks folks.
    I am going to answer from one perspective. Other niches may differ.

    We have a sales rep who is paid straight commission.

    Paying you for leads that would be handed over to the sales rep to help her earn a commission is an added expense for my boss. Yes, his business benefits, but part of the reason she gets paid is because she generates sales. "Handing business to her" would NOT be an easy sell.

    However, SHE might be more than willing to pay $200 on something that brings her $2000 in commission.

    Do you see the difference? It's totally a mindset thing, but this might be where some business owners have a mental block against buying leads.

    YMMV
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  • Profile picture of the author Rafay Zafar
    I have been trying to get into lead generation for the past 1.5 years. My experience so far has been that most business owners are
    a) lazy
    b) lack phone skills
    c) lack ambition to grow
    d) dont pickup 30% of the calls you send them
    e) dont have a sales process i.e. proper CRM, followup etc.

    I have considered sending the calls to a call center and then subcontracting the work but that is not legal in many niches. Also it defeats the main reason for getting into lead generation business model - avoiding fulfillment and customer support headaches.

    In the end i feel that selling leads to local mom and pop businesses is not as profitable/easy as i first imagined. I would do better selling leads to a national or state wide company who have sales teams and proven sales process. These type of companies actually need and want more needs to keep their sales reps busy!
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    • Profile picture of the author Scott Stevens
      Originally Posted by Rafay Zafar View Post

      I have been trying to get into lead generation for the past 1.5 years. My experience so far has been that most business owners are
      a) lazy
      b) lack phone skills
      c) lack ambition to grow
      d) dont pickup 30% of the calls you send them
      e) dont have a sales process i.e. proper CRM, followup etc.

      I have considered sending the calls to a call center and then subcontracting the work but that is not legal in many niches. Also it defeats the main reason for getting into lead generation business model - avoiding fulfillment and customer support headaches.

      In the end i feel that selling leads to local mom and pop businesses is not as profitable/easy as i first imagined. I would do better selling leads to a national or state wide company who have sales teams and proven sales process. These type of companies actually need and want more needs to keep their sales reps busy!
      Yes, these are my experiences too. There's some gold there for sure, but you have to be patient, and become exasperated on a regular basis at how these folks don't grasp the value of what you're giving them. I'm pretty much done wasting my time kicking it with the bottom-rungers for little reward. The higher ticket folks I've picked up here and there are mich more rewarding, and where I intend to spend my time.
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      Yours in prosperity,
      Skochy - The Musical Salesman

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