12 {{ upvoteCount | shortNum }}
12 {{ upvoteCount | shortNum }}

How do you charge a lead to offline clients?

by Joseph Then
10 replies
I'm doing a lead generation for my offline client and one of my client wanted to look for people who wants to become insurance agent.

Well, I tried and got him one solid lead, as a tester.

Now he's asking me for a quote. (Now that's really easy money!)

How much should I charge for leads?

I know how much to charge for SEO, Mailing list. But leads? That's my first time.
#charge #clients #lead #offline
  • Profile picture of the author Shane N
    Perhaps you should charge a flat fee per lead (like $20-40) and then maybe even some type of commission structure?

    Or instead of a flat fee per lead, a percentage of how much money that particular lead brings in.

    It also depends on how hard you have to work to generate one lead...

    Best,
    Shane
    {{ DiscussionBoard.errors[522726].message }}
    • Profile picture of the author Joseph Then
      Originally Posted by Shane Natan View Post

      Perhaps you should charge a flat fee per lead (like $20-40) and then maybe even some type of commission structure?

      Or instead of a flat fee per lead, a percentage of how much money that particular lead brings in.

      It also depends on how hard you have to work to generate one lead...
      Well, the lead is a job lead. Is there a different price for different category of leads?

      Work involve to get a lead? Simple, Craigslist...

      The offline world didn't even know what's that!
      Signature
      {{ DiscussionBoard.errors[522733].message }}
  • Profile picture of the author Shane N
    For a job lead, a flat fee makes a lot more sense. And yes, I would charge different prices for different categories.

    For instance, a real estate lead could potentially make a broker thousands of dollars.

    I still think the average going rate is around $20-40+ per lead. Maybe even up to $100.

    Best,
    Shane
    {{ DiscussionBoard.errors[522753].message }}
  • Profile picture of the author Joseph Then
    Thanks for the help Shane. Just wanted to know also, do I just charge $20-$40 for each lead sent? Or each lead that is successfully contacted by the client?

    I was thinking of charging them by each lead sent, and offer replacement if the contact number is bad.
    Signature
    {{ DiscussionBoard.errors[522828].message }}
    • Profile picture of the author MarkR
      Joseph,

      Or you could charge them X% of the value of the closed lead. Meaning, if they hire the person, they pay you X% of the fist year's salary. Recruiters charge as much as 10% for finding an employee. It can be a lot of work!

      Mark
      Signature
      {{ DiscussionBoard.errors[522897].message }}
      • Profile picture of the author Joseph Then
        Originally Posted by MarkR View Post

        Joseph,

        Or you could charge them X% of the value of the closed lead. Meaning, if they hire the person, they pay you X% of the fist year's salary. Recruiters charge as much as 10% for finding an employee. It can be a lot of work!

        Mark
        Now my client is asking to pay me when they manage to contract the person that I refer. Now that's cool, he's pushing money to me!

        I understand that for normal salaried employees, we can charge 5%-10% of the first year salary. How about commission based staff?
        Signature
        {{ DiscussionBoard.errors[526279].message }}
    • Profile picture of the author Shane N
      Originally Posted by Joseph Then View Post

      Thanks for the help Shane. Just wanted to know also, do I just charge $20-$40 for each lead sent? Or each lead that is successfully contacted by the client?

      I was thinking of charging them by each lead sent, and offer replacement if the contact number is bad.
      I think you have the right idea. Charge for each lead sent, and if the lead is not reachable then you can give them a credit for another lead.

      If you tell your client that you will only charge them if they get in touch with the lead...it opens up an opportunity for them to be dishonest with you and say they couldn't reach the lead, when really they already made a deal with them!

      If you charge for each lead sent, it's a win-win situation for both parties.

      Best,
      Shane
      {{ DiscussionBoard.errors[522903].message }}
  • Profile picture of the author madison_avenue
    You need to find out how much their existing leads are costing them. Most offline businesses will have good idea of this.
    Sit down with then ask ask where they are are advertising and how much it is costing them.

    So if they tell you they pay $100 and they get 10 leads = $10 per lead. You can charge them a cheaper price say $8 per lead.
    {{ DiscussionBoard.errors[522999].message }}
  • Profile picture of the author jasonl70
    whichever way go on this, in the future I'd get all these terms settled and in writing before starting.

    I went into a situation like this without anything in writing, and within a month we went from $20/lead, to $10, to nothing. Then they said "$100 per sale"..

    well, there's a lot of reasons this sucks - one being it's pretty tough to track. but I did manage to track down quite a bit of sales - the reply? "I can't pay TWO commissions on these sales - one to you and one to the salesman".

    So get it in writing from the start, when they are still excited about it and see it as new business. These guys are being pretty cool to you about this - but the next company may not
    Signature

    -Jason

    {{ DiscussionBoard.errors[526332].message }}
    • Profile picture of the author Joseph Then
      Originally Posted by jasonl70 View Post

      whichever way go on this, in the future I'd get all these terms settled and in writing before starting.

      I went into a situation like this without anything in writing, and within a month we went from $20/lead, to $10, to nothing. Then they said "$100 per sale"..

      well, there's a lot of reasons this sucks - one being it's pretty tough to track. but I did manage to track down quite a bit of sales - the reply? "I can't pay TWO commissions on these sales - one to you and one to the salesman".

      So get it in writing from the start, when they are still excited about it and see it as new business. These guys are being pretty cool to you about this - but the next company may not
      I understand. The thing is that I have not tried this before and since this is new to my client and me, I'm just doing a test out for him, who happens to be my good friend.

      After this, once I'm comfortable with this, I'll set it up as a new package for my company.

      That's why I need to know what's the 'market practice'.
      Signature
      {{ DiscussionBoard.errors[526469].message }}

Trending Topics