Would you work with a client on a Pay Per Lead basis?

working on their site or using your site to generate leads?

depends on niche lead can be $10-$100+ ..

It's very depends on the niche and the lead value.

call their competition , find out what they would be willing to pay.

If you don't know the niche lingo, expect to screw up a few times,
but since your not talking to your client, its not a big deal, plus who knows you might pick a new client or two.

A lot of lead costs have industry standards.

All based on things like, paper leads, inbound call, formatted for a dialer,
how easy are they to get, how qualified are they, and of course how much info comes with them.

for instance:

Name
Address
phone

not worth as much as

Name
Address
Phone
Best time to contact
Have purchased, have CC#

inbounds are priced a bit differently.
the costs on them depend on tracking, who is paying for that, as well as all the stuff mentioned above.

btw, that is just a fraction of info that goes into per lead cost.

Ive been selling leads forever.. so if you have more questions, feel free.

You can refer to some of the pay per call networks (CJ has one, and others) to get an idea of what companies are willing to pay per call. Many times the amount of money paid out is dependent on how long the call lasts.

This model seems to be perfect for many offline businesses, because in reality, they pay for "performance" only.

So If you sent a business owner 10 calls in one month, and they realized $1000 in business collectively from those 10 calls, what would they be willing to pay for $1000 in new business?

Its like the old Jay Abraham question: If I brought you a dollar in new business, would you be willing to give me back 25 cents?

So if you got a biz owner to agree to that scenario, those 10 calls would be worth $25 bucks each paid to you - $250 total. And the biz owner would net $750 that they wouldn't have gotten without you sending the calls over. A no brainer for any biz owner who has a brain.

If it were me the first two things I would do is:

1. Find out what the average ticket price is in their industry. Then maybe dig a little deeper to figure out what it REALLY is for THEIR business since pricing usually varies from market to market.

2. Decide who controls what. I know you said "you had full control of their Internet Marketing", but what does that mean? As JSPMedia asked is it their website you are working on or yours?

Why is that 2nd part so important? Well, consider this:

If you put in a boatload of work into SEO to rank a website or videos, once it's out there, it's difficult to take back. Like say if the client doesn't pay or finds someone else who will offer a less expensive lead generation program.

Plus, what you will be doing will build value over time. So do you want that value to be for YOUR business or theirs?

Personally, I would prefer to control everything with my own sites. If they get flaky, and don't want to pay, then I would rent out the website or do a pay-per-lead program for their competitor. Remember, the work is already done.

If they insist you do it for their website, I would charge MORE for lead generation, because you will own nothing down the road. No recurring revenue stream.

if you are working on their site, how you track? using phone track, analytic pixel on their form? From what I see in my area, service company paying around $20-$35 per lead..

but pricing is all up to you and your client. I don't how you pulling leads but you should work out getting pay by per lead and sales commission.

The idea of getting a comission from each prospect who turned into a client sounds very good to me. My plan is to make a bunch of sites for niches where a client is worth more than $10.000. Then, once I will get a reputable company which will be able to convert well my leads, I will setup a call-tracking campaign so that I will keep control of everything what will be going on. If let's say I get a 10% comission on each $10.000 sale then I could easily manage myself to $2000 days, taking into consideration that I will build a bunch of sites which actually will get leads. I try to find an alternative to renting sites and I think it sounds good. Any thoughts warriors?

What are the qualifications for a lead. Is that anyone who is on the phone with them for more then 60 seconds or something they set up an appt with? Make sure to have this clearly defined moving foward.

I would recommend that in the long run you do this on your own site. Right now they are trying to "motivate" you more by having you do more work with the promise of money for each lead you bring in.

What are the qualifications for a lead. Is that anyone who is on the phone with them for more then 60 seconds or something they set up an appt with? Make sure to have this clearly defined moving foward.

I would recommend that in the long run you do this on your own site. Right now they are trying to "motivate" you more by having you do more work with the promise of money for each lead you bring in.

If you could outsourse a call center where you actually set up confirmed appointments for the client then the value per lead would be much greater..
I am toying with this idea myself.

Getting paid per lead can be very lucrative if you are in a good niche and know what you are doing. I know a lot of marketers have a formula where they choose a percentage of a customers value and stuff like that.

Personally, I first look at the bare minimum I can charge per lead depending on how much my traffic costs and my average conversion rate of my landing page (this is easier when you have used it for lead gen in the past). Once I have a rough estimate of this, I just use common sense and a little niche research (aka five min on google) to come up with a cost per lead that allows me to make a decent profit.

I know you are working with their website but I strongly recommend using your own site so you can have more control. This way if you and your client part ways you still have everything ready to go when you get a new one.

It totally depends on the business. If they have a good business then you can say about 10 to 15 % of the profit. I am saying you about the "%" because that would give you more profit in compare to fixed price.