Not All Leads Are Created Equal! What Are The Best Type Of Lead Generation For Your Enterprise!
As business owners or even salespeople, we need prospects to sell our products and services to. However, not all leads are created equal. The amount of profit we make depends on the type of leads we pursue, as some leads are more expensive and less likely to convert.
Let’s explore different types of leads: A leads, B leads, C leads, and D leads. A leads are ready to buy, but they are also the most expensive to target. On the other hand, D leads are cheaper, but they require more nurturing before making a purchase.
Starting with A leads, they represent only 3% of the population, comprising individuals who are ready to buy immediately. This is the market that 97% of your competitors would love to target. However, A leads are often too costly for most companies to advertise to, and many struggle to understand how to effectively reach this market.
For instance, Sam Chand, an insurance seller, pays anywhere from $50 to $100 for fresh A leads. If you opt for pay-per-click advertising, you might end up spending hundreds of dollars to make a sale with A leads.
Moving on to B leads, they are less expensive to advertise to. These leads are considering making a purchase but aren’t actively looking to buy right now. Sam spends between $10 and $15 on this type of lead, as they are a bit older but still potential customers. B leads account for 7% of the population, representing the group that is contemplating a purchase.
To target B leads, companies typically encourage them to book an appointment. While B leads are less costly, many companies still struggle to market effectively to this group because they lack the understanding of creating compelling messages for them.
Next, we have C leads. This group is not even considering a purchase. However, advertising to this group can help collect subscribers, and through educational marketing, companies can showcase how their product can solve their problems. Only the top 5-10% of high producers advertise to this market, but those who do sell 30% of their leads.
Remember, A leads are the most expensive but only account for 3% of the population. Conversely, C leads may not initially be interested, but companies can end up selling to 30% of this market.
Certain types of products, like life insurance and timeshares, require unique selling approaches. People typically don’t actively seek out such products, and these industries often entice potential customers with offers and incentives. Surprisingly, around 30% of them end up making a purchase.
For instance, Sam gave away a gift card and asked his insurance presentation attendees who they would like to give it to. He spent between $1 and $5 per lead, but in return, he received a lot of referrals and sold to 30% of the people he presented to, turning them into his agency’s top producers within a few months.
Lastly, we have D leads, which are the cheapest and most profitable to advertise to. Publishers Clearing House has built a billion-dollar-a-year company by targeting these leads. They attract D leads by offering mass marketable offers that the majority of the population would be interested in.
Publishers Clearing House can send a message to their audience promoting shoes, and approximately 3% will make a purchase. They can then send another message about a new computer, with another 3% responding positively. This pattern continues, and typically, 3% of the audience takes advantage of each offer.
Disney has also targeted D leads in the past. They believed in owning the media, so instead of solely paying other advertisers, they built their own community and marketed their offers within it.
Conclusion
The purpose of building an email subscriber list is that once you have built a following large enough, you can send a message to that following, and you only need a smaller percentage of them to respond in order to reach your income goal.
However, it may require a significant amount of time and financial resources to build a following large enough to achieve that goal. Just imagine how much easier it would be to find someone who is already successful and send a message to their following, receiving their endorsement for you and what you have to offer.
The first time I did this, I made nearly $15,000 in my very first 6 hours, and over the next 12 months, that deal turned into a $150,000 per month income.
The next time, I did a deal with Al Nin and his dentist, and that resulted in $6.5 million over a 12-month period.
I’m nothing special; I simply had some knowledge about a lesser-known method to get companies to recommend me and the companies I have worked with to their customer base. You are just one deal away from changing your life.
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