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How Much is a Lead Worth to a Business?

by Mark Brian
11 replies
For example, you gave a hot lead to a real estate agent or insurance agent.
How much do you think is that lead worth regardless whether it converted or not?
Likewise how much is a good "bonus" if the lead actually converted?
#business #lead #worth
  • Profile picture of the author Mike Grant
    Obviously depends on the niche.

    A surgeon will pay a lot more than a locksmith.
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  • Profile picture of the author Mark Brian
    Yup but it terms of percent, how much is a good percent generally?
    Something like 1% for lead 15% for sale?
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    • Profile picture of the author tryinhere
      Originally Posted by Mark Brian View Post

      Yup but it terms of percent, how much is a good percent generally?
      Something like 1% for lead 15% for sale?
      there is a clac in my sig that may help you out champ, not sure the bonus / conversion thing will work for you but good luck to you if it does.
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  • Profile picture of the author 16Ton
    This is something I've always been wondering about as well. I'm knew to all this and looking for the best way to begin asking for payment from potential clients. Never doing marketing before just don't want to jump in way over the norm on charges.
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    • Profile picture of the author sprks79
      I have a few "high dollar" type clients I produce leads for, (dentist, surgeon, lawyer, pediatric physician, high end real estate and so on) and my lead structure is tiered. I sell packages of 10 at for between $350 and $900 depending on which industry they are in. I have never had any troubles finding the leads and never had any complaints with the price. I don't ever charge on a "commission" basis because it's my job to supply the lead and their job to make the sale, I did my job so I get paid, none of this "I will pay if it converts".
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  • Profile picture of the author TyBrown
    You'll have to check your state laws. In a number of states you wouldn't legally be allowed to collect a commission on a real estate lead unless you were licensed as a realtor yourself. Not sure if the same regs exist in the insurance world.

    The bottom line is, though, that it is worth exactly what someone is willing to pay. In lead gen you'll find that there are different levels of pre-qualification, some leads are sold to more than one company, the age of the leads, etc. can all lead to pricing. I find, in a lot of service markets that I'm somewhat familiar with, that leads go in the range of $20-$50. The best thing to do is find out what competitors are charging for leads and see how you can beat them in volume, quality, ease of use, etc. and charge more.
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  • Profile picture of the author Chris Rivers
    Hey Mark,

    I have to agree with Ty.

    Some business owners have a vision for their business and track their numbers, so they know that a lead is worth $30 - $50 to them. These business owners already know the worth of leads and happily pay the price because they will turn them into buyers.

    The toughest part is finding these type of business owners. These business owners can be found by marketing in your local chamber of commerce, ads in business magazines in your area etc. Remember, these guys are sharp and on it, so be polished and ready to go.

    The second type of business owner is the one who ONLY orders from the dollar menu at McDonald's because they're so cheap. These business owners wouldn't take the leads if you were charging 1 cent per lead for guaranteed buyers.

    Avoid them like the plague.

    There's also a third type of business owner who will pay $20 - $90 per lead IF the value can be demonstrated to them and you take the time to build a great rapport and relationship with them.

    Hope this helps,

    Chris
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  • Profile picture of the author jtimes
    It depends on the business. I know insurance agents who pay upwards to $110 a lead, then I know MLM'rs who pay .10cents a lead.

    So just depends on the industry you are targeting!
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