Would you pay for leads?

by ZNICK
2 replies
If I created a GOOD lead generation system for small local businesses and generated leads for SEO, mobile, websites, rep management, etc., would you pay for the leads?

They'd be screened decently and have confirmed that they are looking for/interested in the service before being sent on, not just window shoppers...

If so, how much would they be worth, assuming you could make up-front plus residual, cross sells, upsells, etc..

Z
#leads #pay
  • Profile picture of the author vndnbrgj
    Not something I would be interested in, but the price would vary depending upon the person providing the service and the type of business.
    Some people charge $300 while others like myself charge $1500.
    Some people have contracts some don't.
    Then it comes down to closing rates.
    I think you will get a better idea after a few people use the leads.
    Then you will know the average propsect to appointmnet ratio.
    Followed by the average appt. to close ratio, then the average amount.

    For example:
    1 out of 5 results in a appt.
    1 out of 3 results in a sale
    Average sale is $1,000
    Then you know you need 15 leads on average to get a sale.
    This can get more involved based on the average lifetime value of a client but...

    Let's say a client stays on for 12 months.
    You would be a fool to not be willing to trade $1,000 for $12,000
    So, 1,000 divided by 15 = 66.67. So, let's say $67 per lead.

    Again, this is just an example in terms of SEO. These are not my stats, just something to think about.
    Now, you can apply the same concepts to the other kinds of leads.
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  • Profile picture of the author maxrezn
    Yea I'd pay for it. Probably $10-50 per lead depending on the quality.
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