How to set up your lead generation program.
Many sales consultants and sales coaching firms talk about the 5 to 7 numbers you need to understand to grow your
business. In every case they start with the number of leads you will need, and then move to how many you need to covert
to customers, and then average revenue per customer… so on and so on.
These 5 or 7 numbers are all based on missing elements!
But here is whats missing, and it is the foundation of lead generation. You must start with what you can pay for a new
customer, and then apply your conversion or closing rate to get to the number of leads, not that you need, but what you
can afford! You can then see dramatic improvement in obtaining more leads by improving your closing percentage.
Increasing your closing percentage will dramatically increase the number of leads you can afford.
Generating leads is easy! I’ll say it again, GENERATING LEADS is easy. Paying for leads is the challenge. Hey, if you have a
big enough budget lead generation isn’t the problem.
Now, for those of us who have a limited budget, lets look quickly at how you build your lead generation program, and
eventually your sales plan from it.
What can you pay for a customer?
This could be a percentage of your gross sales price. It’s going to depend on your gross margins. If your gross
margins are 50%, you may be able to pay 30% for a new customer. If your gross margin is 27% (about as low
as many business can go and survive), you may only be able to use 7% of the gross for a customer.
So. Your average ticket is $20,000. You can pay 7% for a customer, thats $1400.00. You close 20% of your
leads, so you can pay one 5th of the customer cost, or $280.00 per lead.
Apply that number to your monthly advertising and marketing budget and
now you at least you know how much you can spend and how many leads that will produce.
( now work with us to increase your closing percentage and you will be able to afford more
leads, its a success cycle!)
As a client we will work with you on these areas to produce a lead generation program that grows your sales
How to spend your money to generate leads with your budget
How to increase the number of leads based on your budget
How to close more sales from the leads you receive
How to compensate your sales force
And many more.