Reliable Lead Generation

Lead generation is the process of attracting leads (potential customers) into a contact management or marketing software system with the hope of converting them into a transaction of some kind such as a subscriber, customer, purchaser, etc. In some events this may involve nurturing them throughout the buying process to help convince them about your offerings prior to eventually converting them.

In general, with a recurring business model where you customers are paying a monthly or yearly recurring fee for services, you should be willing to spend at least 100% gross profit of an initial new sale based on the fact that every other future sale from that same customer will create a workable profit margin. If your product or service is a one-time purchase, you should allow as much profit to remain from the sale as possible, less your expenses in developing the lead or customer.

To calculate your cost per lead, add up all your marketing expenses for a given period. Then add up the number of leads you acquired in that same period. Finally, divide your total marketing spend by your total number of leads and you will find your actual cost per lead.

While Facebook and social media marketing have been grabbing most of the attention these days, the best way to capture a prospect is when they are specifically looking for something, which, in most cases, is through search engines such as Google. Search engine companies allow businesses to advertise on top of search results which is an extremely powerful method of marketing to people actively searching for a solution to a problem.