Calculating the amount of new leads you can get your client

PokerFace350 · 8th Apr 2012, 03:02 PM

Greetings All,

I have a meeting with a prospect in a couple of days and was wondering if anyone knows what factors go into estimating how many new leads our services can provide them with? I'm using the Customer Lifetime Value equation here for pricing, so I need to find a way to estimate how many new leads I can get them. Does anyone have a formula for this or a way to come up with a ballpark range? Thanks in advance for your input!

Best,
Brandon

Adwizard · 8th Apr 2012, 03:10 PM

Brandon,
The question is much much too vague. What service are you talking about, what industry are they in, I mean you did not give any information to base any kind of estimate on. Are you talking about SEO, text messaging, mobile optimized websites, etc.? Then their results are going to vary widely if they are a professional like Doctor vs. Restaurant.

Just way to vague for anyone to be able to help you here.

Ed

PokerFace350 · 8th Apr 2012, 03:27 PM

Originally Posted by Adwizard

Brandon,
The question is much much too vague. What service are you talking about, what industry are they in, I mean you did not give any information to base any kind of estimate on. Are you talking about SEO, text messaging, mobile optimized websites, etc.? Then their results are going to vary widely if they are a professional like Doctor vs. Restaurant.

Just way to vague for anyone to be able to help you here.

Ed

Sorry for being so vague. The prospect is a local smoke shop owner who has a great location (right next to a university and large apartment complex), but has no web presence whatsoever. These are the services I intend to provide him with:

Website
Mobile Optimized Version
Google Places Optimization
SMS Marketing
QR Code Campaigns

I am going to offer him a website for $1500, throw in the mobile optimized version for free, and the other services for a monthly fee of $400. This calculates to $6300 for one year, and once I figure out the avg lifetime value of his customer, I would like to be able to estimate how many new leads I can get him to figure out what his ROI would be. Please let me know if I'm missing any other pertinent details.

WillR · 8th Apr 2012, 08:23 PM

Brandon,

Estimating how many leads you can get him is only going to lead to trouble. When you don't hit that figure the client will think you have not done your job properly. It is impossible for you to give him an accurate figure without knowing a whole lot more about his business, his current number of customers, etc, etc.

trumpador · 11th Apr 2012, 07:25 AM

Originally Posted by WillR

Brandon,

Estimating how many leads you can get him is only going to lead to trouble. When you don't hit that figure the client will think you have not done your job properly. It is impossible for you to give him an accurate figure without knowing a whole lot more about his business, his current number of customers, etc, etc.

Agree with this your are walking into a world of hurt. Best to stay away from hard numbers. Wait until you're familiar enoughw ith the business and it's customers. Even then it's still not a good idea.

Simply show him a percentage of growth per month. And, if you feel the need, approximate a %age growth in 12-24months and then show how you are tracking as a percentage each month

Adwizard · 12th Apr 2012, 08:20 PM

Yes Brandon... if you could get from him what his customer value is at best you can divide that number into cost lets just say his customer value is $1000. you can say so according to your own calculations if I can bring you only 7 new customers over this next year you will already more than pay for your investment. After 7 (big smile) it's all gravy! On top of that he's looking way more professional and moving forward with his business.

mojo1 · 13th Apr 2012, 11:25 AM

As someone recently told me during a coaching session, let the prospect tell you what he thinks his customer value is per customer. Let him own it and briefly share with you how he arrived at that specific number/value.

This will tell you two things. One of which is that he knows his numbers. Secondly, he is showing understanding and accountability about his business. There's nothing worst than getting tangled with a business owner who doesn't truly know his business numbers and has extremely unrealistic expectations about what their business is capable of and what your services are responsible for providing.

Lastly, you'll be able to use his average or lifetime customer value to create a more realistic lead formula based on his numbers and not yours which could cause huge problems for you in the future during your contract.

8th Apr 2012, 03:02 PM	#1
PokerFace350 The Mobile Marquee Player Join Date: 2012 Location: Sacramento, CA Posts: 12 Thanks: 2 Thanked 1 Time in 1 Post	Calculating the amount of new leads you can get your client Share on: Greetings All, I have a meeting with a prospect in a couple of days and was wondering if anyone knows what factors go into estimating how many new leads our services can provide them with? I'm using the Customer Lifetime Value equation here for pricing, so I need to find a way to estimate how many new leads I can get them. Does anyone have a formula for this or a way to come up with a ballpark range? Thanks in advance for your input! Best, Brandon
	I've got dreams that are bigger than my reality and pride that's worth more than a salary

8th Apr 2012, 03:10 PM	#2
Adwizard HyperActive Warrior War Room Member Join Date: 2012 Location: Southeast Missouri Posts: 198 Thanks: 16 Thanked 74 Times in 44 Posts	Re: Calculating the amount of new leads you can get your client Share on: Brandon, The question is much much too vague. What service are you talking about, what industry are they in, I mean you did not give any information to base any kind of estimate on. Are you talking about SEO, text messaging, mobile optimized websites, etc.? Then their results are going to vary widely if they are a professional like Doctor vs. Restaurant. Just way to vague for anyone to be able to help you here. Ed
	Building Businesses Beyond their Four Walls by Thinking Outside the Box... since 1993. Is anyone capable of designing a mobile site for this e-commerce site for a fee: www.im2sexy4myfeet.com

8th Apr 2012, 08:23 PM	#4
WillR Digital Marketer War Room Member Join Date: 2010 Location: Australia Posts: 12,473 Thanks: 1,984 Thanked 8,187 Times in 4,079 Posts	Re: Calculating the amount of new leads you can get your client Share on: Brandon, Estimating how many leads you can get him is only going to lead to trouble. When you don't hit that figure the client will think you have not done your job properly. It is impossible for you to give him an accurate figure without knowing a whole lot more about his business, his current number of customers, etc, etc.
	. ➨ Here's How to Make Your First $177 Online This Week Using the Piggyback Method... .

12th Apr 2012, 08:20 PM	#6
Adwizard HyperActive Warrior War Room Member Join Date: 2012 Location: Southeast Missouri Posts: 198 Thanks: 16 Thanked 74 Times in 44 Posts	Re: Calculating the amount of new leads you can get your client Share on: Yes Brandon... if you could get from him what his customer value is at best you can divide that number into cost lets just say his customer value is $1000. you can say so according to your own calculations if I can bring you only 7 new customers over this next year you will already more than pay for your investment. After 7 (big smile) it's all gravy! On top of that he's looking way more professional and moving forward with his business.
	Building Businesses Beyond their Four Walls by Thinking Outside the Box... since 1993. Is anyone capable of designing a mobile site for this e-commerce site for a fee: www.im2sexy4myfeet.com

13th Apr 2012, 11:25 AM	#7
mojo1 Advanced Warrior Join Date: 2007 Posts: 789 Thanks: 1,015 Thanked 279 Times in 222 Posts	Re: Calculating the amount of new leads you can get your client Share on: As someone recently told me during a coaching session, let the prospect tell you what he thinks his customer value is per customer. Let him own it and briefly share with you how he arrived at that specific number/value. This will tell you two things. One of which is that he knows his numbers. Secondly, he is showing understanding and accountability about his business. There's nothing worst than getting tangled with a business owner who doesn't truly know his business numbers and has extremely unrealistic expectations about what their business is capable of and what your services are responsible for providing. Lastly, you'll be able to use his average or lifetime customer value to create a more realistic lead formula based on his numbers and not yours which could cause huge problems for you in the future during your contract.