Buying leads can be a great way to grow your small business quickly, especially if you have just launched your business. It gets customers in front of you quickly and you can cash in on someone else’s sales funnel. Lead generation is like any other aspect of your business it needs to be done properly in order for you to turn leads into paying customers. If you can’t turn these leads into paying customers you will be throwing money away that you can’t afford. Here are some strategies to help you get the most from your leads.
#1 – Remember That a Lead is NOT a Customer
First of all you need to understand right up front that you aren’t buying customers you are buying the chance to GET a customer and not all leads will convert. You still need to earn the trust of a potential customer and convince them you are the best person for the job.
That being said not all lead generation services are created equal and they will vary greatly in price and the quality of the leads that you purchase. Look for a company that specializes in leads in your field. Make a small purchase initially to test the waters, check and see if they will offer some sample leads to get you started. But remember you aren’t’ guaranteed a job.
#2 – Follow-Up Immediately, then Follow Up Again
Call the lead as soon as you get it, every minute you wait decreases your chances of closing the deal. If you work in any of the trades, plumbing, roofing, etc, homeowners are typically looking for someone to help them now. They don’t need three quotes, they need someone who can do the job for them right now.
Other fields such as web design or SEO may have a longer sales cycle and it will require more than one phone call to make the sale. Be prepared to follow up regularly until the deal is closed or dead.
#3 – In-Person Quotes Convert Higher
Closing over the phone is hard, even for people who have had sales training. The buying cues are different and you don’t have the benefit of watching your customers’ body language. Many business owners struggle with this and you’re not alone. If it is at all possible then work with a lead generation company who can book appointments for you. In person quotes make it far easier to land the job. It demonstrates you are willing to come to them to help with their situation and give them a quote.
#4 – Focus On The Life-Time Value of the Customer
Don’t get caught up in worrying too much about the initial purchase, the majority of your customers should convert to repeat customers. In this case you could end up paying $50 to generate $100 worth of business, but if that customer spends $5000 in the next couple of years then it was money well spent. Here is a video explaining the lifetime value of a customer.
Buying leads can be a great way to kick start your business or generate new business during lulls. Be prepared to do some testing to find the right lead generation company to work with. Nurture your leads like your business depends on it, because it does.