What changes the cost of your lead?
In today’s digital economy, buyers are inclined to wait until they’re ready to buy before they speak with your sales rep.
But how do you start conversations with the right people?
Some of the most successful companies in the business buy third-party leads to start conversations with their target customers.
When done right, lead generation is a great tool to connect with leads early on and structure the buying process.
Companies choose to buy leads because lead generation is a simple, economical, and repeatable method to expand reach at the top of the funnel.
How Classic Lead Gen Works
You give your lead generation provider audience targeting parameters and content. They send an introductory email on your behalf that invites the audience to fill out a form and download your content.
The provider then compiles the data from those who engaged and verifies the information (often by phone or social media) before sending it to you.
Pricing varies greatly based on the provider, but the same basic principles apply: Cost per lead (CPL) starts at a base number, which is adjusted based on the complexity of the campaign.
At HIPB2B, The base CPL is between $20 and $40. Here are the factors that impact the cost of a traditional lead:
Some of the most successful companies in the business buy third-party leads to start conversations with their target customers.
The more niche the audience you want to reach, the more it will cost you. After all, with fewer contacts available, the provider will need to work harder to convert a proportionately higher percentage.
Ultimately, the decision about target criteria comes down to reaching the right people while preserving your audience size. On one hand, you don’t want to pay for contacts you can’t use. On the other, you want to ensure your audience is large enough to support your efforts.
When we send an email on your behalf, you have the option to add up to four additional qualifying (or disqualifying) custom questions.
This helps to narrow the leads you put up for consideration. The more custom questions, the higher the cost per lead. You will get fewer leads per dollar spent, but you’ll have added assurances about their quality.
Here’s HIPB2B’s guide to which fields you get for free, and which cost you extra:
The more leads you buy, the less each one costs.
At HIPB2B, we usually recommend a minimum of 100 leads, but like any volume product, the more you buy, the less you spend per unit.
Large deals are ideal to support predictable strategic initiatives. If you’re breaking into a new market or launching a new product, you can affordably jumpstart results with this kind of lead generation.
The longer your campaign runs, the more reach you’ll get for less money.
There are some distinct advantages to spreading out a campaign over time. They include:
- Less wear on the audience
- A consistent stream of leads for marketing and sales efforts
Long-term deals allow for better planning and management of lead generation efforts. This is a great way to save for companies that understand their needs over the course of a year or more.
Not every asset connects with every buyer. Having multiple pieces of content allows a provider to reach different members of the target audience, which makes the campaign easier to fulfill.
If you have the content on hand, it doesn’t cost you any additional money to send more than one asset. It’s a good idea to share any high-level content you have for the target persona. It’s better to have too many options than too few.
Lead generation is tricky, especially when you’re starting from scratch.
Using a third-party lead generation data provider, you can reach your hottest leads sooner than ever.
How much you spend depends on what you’re looking for. You’ll need to first determine the demographics of your ideal audience. From there, you can determine what fields you need and what custom questions you’d like to ask. From there, you need to determine what and how many assets you want us to send on your behalf.
Finally, you determine how long you want the campaign to run and how many leads you’ll want. To get started with buying classic lead generation, you can check out
Let us know what you think:
- Have you purchased leads before?
- How did it benefit you?
- Does this guide help break down the cost better?
