What is the value of an online-generated lead? Part IV – Putting it all together

Generating quality sales leads online requires skill and some practice.  Before you begin, there are some questions you need to address:

  • Should you use organic search or paid search?
  • If organic search: how much time should you invest?
  • If paid search: how much money should you spend?
  • How can you know you are getting the most value for your time and money?

You will find the answers to these questions and more in this four article series, “What is the value of an online generated lead?”  If you have not read the previous three articles, please do so before continuing.

Putting it all together

Let’s continue with our example using our hypothetical sales person, Joe Smith.  We know that for Joe, since a single lead is worth only $3.  Therefore, if it takes Joe any longer than 5 to 10 minutes to generate each lead, he is losing money—it is simply not worth it.  On the other hand, if Joe can generate 20 leads an hour, he’s doing ok.

Using your numbers and the amount of time you spend or are willing to spend online, determine your affordability factor.  Is what you do worth it, or should you invest money? Determine how much time you can afford to invest online, and then you will know which method of online lead generation is best for you.  Perhaps for you it is a combination of a little more cash invested and a little less time spent.

Is it the leads or you?

Once you have a value of a lead, you must remember that it is your performance that helps set such value.  As an example, if Joe were able to close just one more sale out of those 100 leads, the value of each lead would double to $6!  Now of course, to double your closing average overnight is not going to happen.  However, there are many steps in the sales process and increasing the percentages in some of these other areas can have the same effect.  In Joe’s case, he can double his sales results without increasing his closing average one percentage point.

Where to invest money

Joe’s first step is to take the leads he generates online and contact them to attempt to convert them into prospects.  His ratio for converting leads-to-prospects is but 20%.  If Joe could increase this step to 40%, then he would have 40 opt-in prospects from which to begin.  Maintaining his 30% prospect-to-appointment average, he now sets 12 appointments instead of only six.  Joe’s same appointment-to-closing average now has him asking for an order from eight prospects from which he closes two sales.  Joe now generated $600 from 100 online-generated leads.

The point here is that before you choose to invest a ton of money in online lead generation, you want know all of the facts.  Often, one small simple change in your web search techniques can make all the difference.

For instance, after some investigation (which is only possible if you maintain good records) we find that Joe’s 20% conversion rate is mainly because a large percentage of the leads he generates online do not qualify as prospects.  Therefore, he spends much of his time narrowing or filtering the list.

Joe sells dry cleaning equipment and materials to dry cleaners.  He needs dry cleaners that have on-site cleaning and pressing.  He is able to gather a ton of leads of dry cleaners online; however, when he calls to get permission send literature and qualify the on-site pressing, he finds many do not qualify.  If Joe were able to gather 100 leads online in the same amount of time, and have these leads pre-qualified has to on-site cleaning, he would double the value of his leads and his income.

Effective and proficient on-line lead generation requires skill and knowledge

At Lead Generation Canada, you will learn many online lead generation techniques to use, even when searching organically, that will help you narrow your search results, produce higher quality leads and help you make more money!

Now look for, “How to generate free business-2-business leads online”

Does your company need a website or lead generation system? Contact us or take our survey and see how Lead Generation Canada can help you!