"Lead" is another word for a prospect, someone who is seeking more information about your company or products. Lead costs vary depending on the type of lead that you are attempting to buy. The article goes over different types of leads and how much they might cost you, as well as how to identify these types of leads.
Before jumping right into the topic of how much does lead cost let's look over some basics.
Prospects are customers or clients that a company is trying to acquire. Prospects can be placed in different categories, depending on the company's objective and tactics.
One of the most common types of prospects is a client. Every company has clients that need products or services from their business, these are called "qualified prospects".
Now that you know what a prospect or lead is let's find out how much does it cost.
The most important question in lead generation to ask is what is the cost of a lead. Prospects are not as expensive as some may think, especially if you have a high-quality list.
When compiling your list, keep in mind that you don't need to include everyone on the list in your efforts; the ones that would require too much time and money are the ones that should be removed from it.
The cost of a prospect varies depending on the quality (quantity, age, geography) and stage of the relationship (awareness, interest, consideration).
For example, the cost of a prospect differs if he is referred by a counsellor or formally contacted by the company:
According to a Nielsen study (2013), it costs around 30 dollars per qualified referral. These are people that have expressed interest in your products but don't know you.
In other words, they want more information on what exactly and why they should buy from you. They can also be potential customers, who got something through a referral (or approval) from someone trusted.
The ultimate goal of lead generation is to find leads that are actually interested in your product or service.
With a list of qualified prospects you can now contact that could potentially be interested in your business, it is time to invest in some paid advertising.
Don't underestimate your reach. While it is true that Facebook, Instagram and Twitter may be the most popular social media outlets, it does not mean that they have the greatest reach for PPC ads.
You can go as far away as Japan, and still get results with a small budget.
Their paid traffic is also not nearly as expensive in most cases compared to Australia or the States (the US are known for their high prices).
The cost of a lead is usually determined by the effort required to qualify it.
For example, if you're looking for a salesperson to call on potential customers, you may want to spend some time screening them before asking them to make an appointment.
You can also take other factors into consideration such as their geographic location or the time of day they are available. I hope now you know how much does lead cost.
That's all for now! See you later with a different topic! Till that keep the conversation going in the comment section before.
