Cost Per Lead Marketing. What is it?

Cost Per Lead Marketing is pretty straightforward. We generate leads for your business and you only pay one fixed, results-driven price. Much like how you only pay an Estate Agent when they successfully sell your house, cost per lead marketing means that you only each lead that they generate you.

Here’s the general idea

When you use cost per lead marketing, you’re essentially paying for a specific level of interest to occur. This can be incredibly useful if everyone’s clear on the best handover point, so communication is key. Below is a quick outline of the concept, what to look for and what to avoid.

What different types are available?

There are a few main ways that you can break down the types of cost per lead marketing. The main ones are:

• Channel of communication – Depending on how your customer buys, which channel is used to generate leads? e.g. Social Media, Trade Shows, Web Chat, Phone, etc
• Buyer focused vs Seller focused – Are they only generating leads for you or will this same lead also be passed to your competitors?
• Degree of interest – Are you receiving booked meetings? Opt-ins? Or do you simply receive a list of names and numbers?

It’s important to be aware of what works for you and your sales team when considering these types of options available.

When Cost Per Lead Marketing works really well

What does ‘Pay-Per-Lead’ actually mean? What ‘Pay-Per-Lead’ actually means essentially is that you’re paying for a lead which has reached an agreed point. Typically this has a few factors;

• Prospect – A specific prospect type, person or company
• Interest – Which has reached a specific degree of interest
• Next steps – Which would like to take a specific action (A callback, receive a quote, have a demo, etc)

Cost Per Lead Marketing works really well when there is clarity and communication. What’s good for you and not good for you? Specifically, what company types, criteria and degree of interest increases your chances of converting leads Similarly, what scenarios don’t work well for you?

This all may sound a bit big and vague but it’s especially important to say what’s not good for you upfront as this will dramatically impact your ROI if not properly controlled.

When it doesn’t work so well

Pay Per Lead works amazing when the interests of the company and the agency are aligned. When Pay Per Lead goes awry, it’s usually because interests diverge. This is why we place such a bit emphasis on up front and continued conversation about how leads are going. The more we can pass you leads that convert, the more sales you make.

What do we mean by ‘diverging interests?’ Depending on the type of Cost Per Lead Marketing you are looking for, it can present in different ways. Check out our What’s the best Pay Per Lead campaign for our business? blog

Comparison: What’s the best Pay Per Lead campaign for our business?

What you should expect from a good marketer

The main thing that you should check for is how actively they seek your feedback. Does your agency pass you 100 leads and then leave you to it? Or does your agency genuinely care on how the qualification of a lead impacts your conversion rates and ROI.

If you have any questions about how we generate leads, please drop a message to our colleagues on the live chat in this screen. We’d love to speak with you and we are available 24/7. If you’re not ready to chat yet, why not follow us on Linkedin? Daily sales tips to help you grow your business.