Lead Generation Services - Those of You Doing it, What's Your Take?

6 replies
Hi folks,

I'm currently running a successfully growing consulting/marketing service for local businesses. We've got some great products, and awesome clients, but there's a big gap in the marketplace for a business to come in and sell leads directly to clients. At the end of the day, my clients subscribe to my services to generate exposure with the goal of getting more leads in the door (apart from branding tools I offer, etc) - I can see my business being exposed to churn down the road if a company comes in and just sells them the leads directly. Ultimately, if I were running my clients businesses I would start diverting funds into pure lead generation (provided it worked).

To get in front of the competition, I want to be the one to start selling a successful version of this product before someone else struts into town.

Where am I so far? I've started testing various methods at generating leads that I've read in the forum, purchased in WSOs, thought of myself etc. and have ultimately come up with a consistent program that generates a healthy amount of leads per month for the first niche I want to target.

I've been sending these leads to a client I already have in this niche (for free) while I'm testing these methods of generation and we've been in communication about the quality of these leads.

He's happy so far, and approx. 25% of the leads he's been getting turn into clients on the spot or turn into very hot leads that will be nurtured in his pipeline.

So here's some questions for those of you who know the biz:
  1. What percentage of leads that you send to your clients are "good" in their eyes?
  2. I'm considering pre-qualifying these leads before they get sent to the client via a phone conversation, email form, or otherwise so that the conversion rate from his side is higher - does anyone do this?
  3. What's your pricing model?*


*A note on pricing: I've been toying with the idea of charging a flat fee for the program, and then charging pre-payment for the amount of leads the client wants per month. For example, if the client wanted 25-35 leads he would pay the flat fee for the program and then $2,100 for that "package". If he wanted 35-50 leads he would pay $3,000 for that "package", etc. I realize that a potential issue here comes down to failure to deliver the leads since he's paying up-front, but my testing will dictate the packages of leads I feel we can easily achieve with the corresponding ad-spend. Any thoughts of this?
#generation #lead #services
  • Profile picture of the author timpears
    It is beyond me that businesses would not want leads, but I have been turned down so many times by leads, and never even got to anything about price, it amazes me.
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    Tim Pears

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  • Profile picture of the author BillyParadise
    Acv times close rate times whatever percent you think you can get away with.

    Acv 1000 x 25% x 10% = $25 per call.

    Get a call tracking system or do like we did and build your own. No not for sale yet
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  • Profile picture of the author BuddyFox
    Originally Posted by JayKay Dowdall View Post

    So here's some questions for those of you who know the biz:

    [/I]
    That's the problem - we don't know the biz!

    Every vertical in different...for example: attorneys pay more for leads than mortgage brokers...

    I do like, however, the base fee for service each month in addition to a budget. The issue there is that you need a platform that is actually worth the base fee...What else are you offering besides leads? Do you have a CRM included? An auto-dialer? A snail mail sender? Again, I don't know the industry that this is for, but the billing model could work and is very similar to these new real estate lead companies like commissions inc, kunversion, boomtown, etc..

    I def believe that several industries need more software/marketing companies like these...
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    • Profile picture of the author JayKay Dowdall
      Originally Posted by BuddyFox View Post

      That's the problem - we don't know the biz!

      Every vertical in different...for example: attorneys pay more for leads than mortgage brokers...

      I do like, however, the base fee for service each month in addition to a budget. The issue there is that you need a platform that is actually worth the base fee...What else are you offering besides leads? Do you have a CRM included? An auto-dialer? A snail mail sender? Again, I don't know the industry that this is for, but the billing model could work and is very similar to these new real estate lead companies like commissions inc, kunversion, boomtown, etc..

      I def believe that several industries need more software/marketing companies like these...
      Hi Buddy,

      I meant specifically the "biz" of lead generation rather than the niche I've chosen to work in, sorry for the miscommunication.

      I think the base fee is really key here. If worked on the pricing model after calling a few national lead generation services and amalgamated a model that I think will work well. I'm going to test and then post the results here

      I'm not familiar with kunversion or boomtown, but I smell more research brewing!
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  • Profile picture of the author markandroena
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  • Profile picture of the author Peter Lessard
    Originally Posted by JayKay Dowdall View Post


    So here's some questions for those of you who know the biz:
    1. What percentage of leads that you send to your clients are "good" in their eyes?
    2. I'm considering pre-qualifying these leads before they get sent to the client via a phone conversation, email form, or otherwise so that the conversion rate from his side is higher - does anyone do this?
    3. What's your pricing model?*
    1. When they are getting them for free they are all good. When it's time for them to write you a check none of them has ever been any good.

    2. Waste of your time and talent unless you have equity in the business or you get paid up front from each sale.

    3. Varies. I like cut and dry between X and Y leads per month for a set price with that set price increasing based on lead numbers.

    On the bigger picture it does not matter what you sell, you will get churn. You could actually sell dollar bills for 50 cents and get churn, don't expect logic.

    I do absolutely recommend you moving in the direction of being able to point to leads you generate. Even if they don't want to acknowledge their value you would be amazed how quickly a check gets written when you say have a nice day will deal exclusively with your competitor next month.
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  • Profile picture of the author MaxwellB
    Would definitely go for pay per call. I sent you a PM because as you stated the issue really comes down to fulfillment. You want to get paid upfront for a package or at least weekly and know you'll generate the calls. It's different for every market, your costs might be different per click or per lead in Chicago than Miami and even more different in the suburbs versus the cities.

    If you could guarantee fulfillment, then you have a lot of the issues resolved. That's what the PM is about
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