I am often asked how much do good leads cost?
What are the best leads?
These questions in general stem from a lack of understanding business!
The cost of leads should be measured against success in getting the results you want from the leads and not in what you pay for the lead.
Also what are your expectations and are they realistic? Do you seriously expect someone who you have never met or contacted before to spend their hard earned cash on something you are offering?
Is a lead that cost you 1 cent of less value than a lead that cost you $3?
Let me explain right away that ALL leads are just a starting point. It is like bumping into someone in the street that you never met before, you can pass each other by without a word, you can say hello and walk on or you can start a conversation. If they are random meetings in a crowded street then they can be people with any interest, from any walk of life and with any diverse need.
However if you meet them in a gym then it is safe to assume that they have some interest in health and fitness and as you are there too that you have a common interest although the reasons for being there may differ greatly. You may be a professional sportsman who needs to work out to stay in peak condition because your living depends on it, while the person you meet may be someone who is a few pounds overweight and wants to shape up a bit before going on vacation to a beach resort.
When you pay $3 or $4 for a lead you expect there to have been some pre-qualification and the higher the cost the greater the depth of qualification whereas a lead for 1 cent may just be a name or email address where little or nothing more is known about them.
As an example you may be selling a herbal tonic for gout in males over 40 years of age. If you just have a list of thousands of email addresses then it may be a long job to filter through that list to find prospects. and maybe only 1 in 1,000 fit the profile so although you get 1,000 leads for $10 (1 cent each) the cost of the prospect is actually $10 and a lot of effort and to make a sale you may need 5 prospects so the cost of the sale would be $50. However if you had a list of 10 people who had previously bought a gout remedy and were still searching and that list cost you $30 ($3 a lead) and you made 2 sales from those prospects then your cost per sale would be down to $15 providing a return on investment more than 3 times better than the low cost leads and involving much less effort.
It is not as simple as that however because we are all different and some people are really good at working with low cost leads and getting to know people and their needs. They have a list of 1,000 emails and through engaging with that list they are able to find different needs and desires and provide solutions to a great diversity of problems.
I also find that expectations are often too high regarding opt ins to a list and how they will respond after opting in. The average opt in from a lead capture page with a reasonable targeted offer is usually between 25% and 40%. So that means that for 100 visitors you will get maybe 30 that opt in. That does not mean that 30 will open your emails or click on your links!
The number that open your emails will probably be about 10% and they will not always be the same people. Who opens will depend on the subject line, time of day, how the person is feeling and many other variables so from your 100 visitors you may only get 3 that open your emails; as I said the 3 that open may be different each time you send a message so bear that in mind. If your content is interesting and of value then gradually your open rate will improve and may get as high as 25% or 30%, but if your content is pushy and boring the open rate will decline and unsubscribes will be high.
Next I want to point out that because your email has been opened it does not mean that the reader will click on a link and visit a web page, blog or sales offer. Usually only half the people that open your mail will actually click on your links. Breaking that down it means that from 100 visitors you will probably only get 1 link clicked with each mailing. (100 visitors> 30 opt ins> 3 opens > 1 click through) In a nutshell do not expect 30 sales from 100 visitors! These figures are generalizations and you may get better results or worse results and only time and expertise you acquire from testing and tweaking will improve your results.
I have been marketing for 40 years and with almost any list I can make sales when people tell me that this list or that list is no good and not responsive. I get and use the exact same leads as many other marketers and I make sales where they often fail. What then is the difference? It can not be the lead source as it is the same and so it must be in the following 3 areas:
Unfortunately each of these topics could cover a 12 month full time course and so I will state very simply – treat people as you would wish to be treated! Engage in conversation with them where you look to help them find solutions to their existing problems and by doing that you will convert visitors into leads. Then as you build faith and trust you will nurture those people who have become your friends into also becoming happy and satisfied customers.
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