Lead Generation Strategies for Service-Based Businesses

Many businesses at some point require leads, especially if you are a service-based business. If this is you on both points, you might find this BLOG quite interesting.

I (and many business owners I know) have gone through the process of paying straight out for leads or paid a marketing company to generate leads for me. Both initiatives have failed miserably for all that I know. Promises are made (by many Lead Gen companies) that they will provide you with say 50 leads, however, you are not promised any return (leads that convert to a sale) on the money you give them for a “potential customer”. (The definition of a “Lead” is a “Potential Customer”). You can market yourself and reach “potential customers”. – so, what are you really paying for?

The question you need to ask a potential marketer is “how much will they charge for a lead that converts to a client, rather than for just a "lead" that is a waste of time and money?” Conversion rates on Leads from socials average between 5% to 9.21%, so lets say you buy 100 leads, (at $100per lead = $10,000) you could get 5-9 sales. Industries like Finance and Insurance are at the bottom end at 5% (or less) and the leads are more expensive to purchase. From these statistics, you can work out the viability of purchasing leads.

Additionally, to the above, here is some more statistics and information on “Leads”. After 5 minutes of the “Prospect” clicking to generate the lead, the prospect starts to go cold on the idea of your service. Within 48 hours, the lead is considered “dead”. How long might it take for the lead to get generated, go through the marketer’s system, land in your inbox, then you contact the prospect? The longer it takes for you to speak with the prospect, the harder it becomes for you to convert the prospect into a sale/client. It is not uncommon for marketing companies to say something like “we have spent all this time getting you a qualified lead, then it is up to you to convert, and if you can’t convert, that is not our fault” - really?  With 95% of marketers, we have found very little accountability.

Many business owners believe that buying leads or relying on marketers to generate quick leads could be a quick fix to their lack of sales? Many business owners “Buy” leads out of desperation, which should not be the motivating factor. Buying leads only represents one avenue of “lead generation” – NOT sales generation, and this is a big difference.

Simple analogy:

Here is an analogy: You pay a marketer $3,000 to generate 30 leads at $100 per lead. ($100 per lead (or potential customer) is reasonable in many industries) The outcome you expected was not good, you might have just made your money back (if lucky) – Has this happened to you? The marketer on the other hand just made $3,000 for a minimal “click spend” – let me explain, you pay the marketer $3,000 and 4 other businesses pay them $3,000. The marketer then goes to market, using their platform (and brand) and creates a very large database of people who clicked on every one’s ad, and the marketer continues to market to those people, (re-targeting and nurturing) long after you walk away from the venture.The marketer has built a huge database of potential clients, you have not. Now, the marketer has the $15,000 and all the database (that you helped to build) and the marketer is selling or providing those ongoing “free to acquire” leads to your competitors. This is the circle of life in the social media marketing game.

Solutions:

Social media marketing is only one lead generation initiative. Your business might have better results from alternative options like:

·         A website: utilize Search Engine Optimisation (SEO) to generate organic leads for your business

·         Networking events: Attend industry events, business conferences, and local networking meetups to

·         Connect with potential clients and establish partnerships with other professionals

·         Client Testimonials: Showcase success stories and testimonials from satisfied clients

·         Webinars & Workshops: Host online webinars or in-person workshops to educate potential clients

·         Referral Partners: Create relationships with other business owners that can provide you “hot” leads

·         Database mining: Build your own database and communicate with your audience

·         Email (EDM): Send newsletters or other communications to your database or affiliations.

·         Radio/TV: Traditional high awareness, cheaper for regional areas.

·         Letterbox drops: This needs to be done several times before you begin to see results.

There is no doubting that social media marketing has good reach and that businesses need to “get out there”. As a business owner, there are two ways for you to monopolize on social media marketing and use it to your advantage.

1.       Learn all about social media marketing yourself. Subscribe to a good platform like “Go High Level” which has a good CRM attached. Identify your target market (people you want sell to) and create some marketing campaigns to roll out to Facebook, Linkedin, Instagram, YouTube etc... People that click on your ads are captured and become a part of your own audience, which you are able to retarget again and again with your ads. People that click through to become a lead can be put into an automated nurture sequence to build trust and recognition, to eventually buy from you in the future. The more you spend on “clicks” (because you will be charged per click by Facebook etc) – the bigger YOUR database becomes. By doing this, you are also promoting YOUR BRAND and your business is getting a lot of exposure which can be a huge future bonus to get leads for $0.00, walking through your door. This all takes time, (and is not as easy as it sounds) but it is a part of growing your business.

2.       If you do not have the time to learn all the intricacies of social marketing, engage a reputable Digital Marketing Manager that can build your marketing platform or campaigns etc., for you, using your brand. You will still receive the same (if not better, as that is what they do for a living) benefits, but it will cost you a little more.

When it comes to marketing, thorough research is key. Many business owners tend to explore marketing ideas only when sales are low, making them vulnerable and susceptible to the appeal of "Loads of Leads." via questionable marketing companies. So, where can you go to get unbiased information about Lead Generation?- Certainly not to a marketer, as they will promote themselves as the right solution to your needs.Why not try a qualified Business Advisor for some initial free advice? The Business Advice Agency (BAA) can be your reliable partner on your business journey, connecting you with digital marketing experts and offering insightful marketing courses through its member portal. We encourage all business owners to reach out to BAA and their certified Business Advisors for guidance, not just in digital marketing, but also in legal, finance, business coaching, and beyond!