Why generating leads could make you tons of money
I wanted to discuss why generating leads could make you tons of money. E-Commerce can make boatloads of cash as well; however, services tend to provide more income, and a lower overhead
(which means a higher profit). For example, I have a client that started with me in February of 2016; we officially hit the ground with an online marketing campaign in April of 2016. By July of 2016, they were booked out until July of 2017. I generated, through online marketing, almost $200,000 in revenue, and almost $435,000 in leads.
The hard numbers
Think about how much money you make off one lead. For simplicity sake, I’ll go with $6,000 a lead. You can turn around one lead a week at current capacity. There are 52 weeks in a year, which means you have the earning potential of $312,000 in a year at current capacity. Additionally, if you offer a long project time, and you can sell a year or two out, there is a benefit. You can rely on your future revenue, which brings $312,000 to $624,000 over two years. If you build capacity, and you can service 4 leads a week – this brings you to $1.2 million a year or $2.4 million in present and future earnings, over 2 years.
How is this possible?
It’s a simple principle called lead generation. In my business, I can bank a project about a month out. However, I am one person, and I do all the work myself – so my capacity is about 6 full-service clients at any given time, and at most 10 web projects over a quarter. In my line of work, this has huge earning potential. I work heavily on referrals and my lead generation system – which works. But given the nature of what I do, I get as many junk inquiries as I do viable ones.
I offer a service but I don’t need a website to generate leads
I hear this often. If you think that’s true, you’re wrong. You can buy leads from places, and you can cold call, but nothing is more effective that inbound marketing leads. They’re soft sells and qualified buyers who have expressed an interest in what you’re selling. Other benefits are newsletter registration and follow-up call lists.
All I need for this is a website?
No, you need an amazing internet presence, which is a website, social networking profiles, and a well-presented sales pitch that defines your unique value proposition. In addition, you need to have the entire thing mapped from start to finish. Lead Mapping is the progression from a search result all the way to the signing of the contract. Even how you provide the service is important.
You need to plan this properly before you run up and start trying to sell to leads. So ask yourself these questions:
- Which path from a search result do I want them to take?
- Which landing pages lead to which forms?
- What sales material do I have to give to a lead to help close the sale?
- What’s the service agreement like?
- How do I package the service?
This is a small list of questions to help you understand how much thought does need to go into lead generation.
Do it right the first time
Set up for online lead generation right the first time. Every time a part of the process isn’t predetermined, you could lose a potential sale. If the lead progression falters at any point, you can reduce the number of inbound leads. So, it’s important to get everything lined up first, including how much capacity you can handle, this defines potential earnings, and how many leads you can service.
Why taking all the leads you can get is a bad idea
“I will take all the leads I can get.” Sure, if you can handle what I can bring you with no cap on the number, let’s get to work. However, if you can service 1 lead a week, and you have a sales closing rate of 25% you’ll need to have 4 leads generated for you each week. This will match your capacity. Turning away qualified leads, because you’re at capacity is bad for business. This leads to poor reviews, and worst of all, waste of your customer’s time. The best course of action is to take as many leads as you can service.
At the end of the day, an E-Commerce website can make you money, by selling a real product; it’s more difficult to actually get those sales. If you offer a service, you’re in luck – because you can generate qualified inbound leads for your sales force to sell. There you have it, generating leads could make you tons of money.