how much to charge for lead generation?

In regards to your original question, I will have to say that it all depends on your lead. I have sold leads for $10 a lead, $2 a lead, and $50 a lead. It all depends on the niche, and what exactly they get form each lead. If they only earn $80 from a single lead on average, don't expect to earn much unless it is a super targeted lead that has literally been properly checked up on to see that they're in the right niche.

Well, to figure out the value of your leads,
you should probably look at conversion rates.

Let's say that for every 100 good leads, 10
become paying clients. So that's a 10%
conversion rate.

Now let's say each paying client is a profit of $100.
So for every 100 leads, you're bringing $1000 of
profit into the business.

Of course, this profit only exists because you brought
in quality leads. How much % of the profit do you want?
If you split it 50/50 for this example then you could
charge $5 per lead.

That way, every time you bring in 100 leads and have
a 10% conversion rate, you'll earn $500.

If anyone else has a better way to value leads, I'd love to
learn a different perspective. And I'm sure every market is
different. I don't sell leads for a living. Just thought this
would be the best method for figuring how much to price
leads.

I am also interested in this subject granted I am new to sales and internet marketing (but learning fast!). Anyways, What I want to add to this post is this : Try security officer businesses. I myself have considered finding a way to generate leads in the security industry (I am familiar with it and it is growing). Every time a new construction project pops up, the contractor company will eventually need someone to guard the facility from copper thieves and such. Every time a crime happens at a retail establishment and the property manager learns that police generally do not patrol their property unless they are dispatched or an alarm goes off, a new opportunity presents itself.

For me, in this niche (and every major city has its own niche), I would use a web site to sale it along with simple business cards. Maybe do intel on property managers through facebook or linked in or go to the trade shows and make some contacts for future proposals. The two main hurdles are money / budgets and sometimes people simply will not work with you if they do not know you or know someone who refers you to them.

Charge a separate management fee plus an ad spend which you control. That way, you get an agreed fee for your service every month, and you get to work within their ad spend budget to produce the best possible combination of quality & volume to suit their needs.

This will probably work out a lot better than charging per lead and then having to try and optimise like crazy just so you get to earn some money on the leads you generate.

Learn your vertical and learn your buyers. There's no standard prices set because there is no standard in lead quality. A lot depends on who your leads are and how you generated them. Talk to your buyers. How much are they currently paying for their leads and what kind of leads are they buying. It can take a little while, but when you work with your buyers, build trust and continue to supply them with good, quality leads, you will always be able to charge more.

Best of luck!

I'm new for warriorforum . But i already thing that.


cheers

livi

Here in London - there are a series of business models that lead generation firms use.

The most popular I believe is when they actually make a business meeting for their client, with the key decision maker. In order to confirm that this is the main man - the call will more than likely have been recorded.

They charge around £250 (approx $480) per one of these leads - but these are HOT leads.

I would say a good niche to go after would be the smaller sales firms which cannot afford a fully fledged inhouse sales team...

Everybody wants to sell something - but many cannot afford the staff - and that's where you would come in..


Hope this helps buddy

I'm interested in buying sales leads, inbound phone calls.

I flip real estate through finding wholesale deals.

PM me if you think you can service my needs.

When deciding how much to charge for lead generation, there are many avenues you can take.

A very simple method to calculate lead cost is to simply do a multiplier of the Adwords CPC cost for a range of keywords that revolve around the services you are providing leads. So if you are in the dental niche in Chicago. If you look at the CPC cost for 10 keywords like Dentist Chicago, Dentist in Chicago, Dentists Chicago, etc. The average is around $9. So then depending on how greedy you are, you just take that number and multiply it by saw 10 for example. Giving you a $90 per lead price for general Dental Leads in Chicago. This allows you to easily utilize a simple Adwords campaign to a landing page without overspending per lead, even if your landing page does not covert the best.

Another method is a simple calculation that involves the client's own conversion numbers. So take the price of the service, example $1000 and you ask them how many leads out of 10 could they convert to paying customer. Here are 2 examples, first is where the business owner says he converts 4 out of 10 and the second he says he can convert 7 out of 10. The formula is Price of Service * # of converts * 25% / 10. So first example, $1000 * 4 *.025 / 10 = $100 per lead, costing him $1000 to make $4000. The second example is $1000 * 7 *0.25 / 10 = $175 per lead, costing him $1750 to make $7000.

A third method involves a lengthy discussion with each individual business owner. Find out how much their services are worth. Say they have 3 major services they want to promote and 5 minor services(add-on, value add extras). Each service is worth $1000 per customer and each minor is work $250 per service. Now find out how many MORE of the primary services they want to be doing in the next year. Say that number is 10 a month equally 120 more in the year. That is a total of $120,000 in primary services. Then for every primary add on 2 minor add-ons on average, which is $500 per client...for another $60,000 in minor value add services, totally $180,000 in more revenue. Now simply take that total revenue number, multiply by 10-15% (the average of what large companies spend in marketing to gain more market share), which is $18,000-$27,000. Now divide that by the 120 more customers and it is $150-$225 per lead.

As you can see all of these come out to a similarly close number...and are three easy ways to calculate cost per lead. Btw, these are exclusive leads, you can charge less for shared leads and even more for high quality, exclusive and ultra targeted leads.