A lead is essentially one unit of consumer interest, and many businesses know how many leads they require in a particular period in order to be profitable. Often, the most difficult aspect of running a successful business is generating the leads. With that in mind, we present to you the five most popular systems.
1. Direct Mail
The fastest way to build a business is by directly targeting the most active consumers in a niche. Once upon a time, business used snail mail to facilitate this. Nowadays, businesses use e-mail, text messaging and Twitter. Nevertheless, the concept is the same. Through direct mail, a company builds a base. It starts with an introductory letter and a deal that’s too good to pass up, and that converts into an opportunity for the business to connect with that client each month.
2. Purchasing Leads from Brokers
The second most popular technique, and the most popular among startups, is the buying of leads from lead brokers. These brokers make it their business to generate leads, and that removes a great deal of the burden from the business that wants to focus on customer service and the quality of its products and services. Established businesses use lead brokers too, and businesses with sales departments will often use a lead broker whenever they would otherwise fall short for the upcoming period.
3. Purchasing Leads from Search Engines
Traditional leads brokers are active. Search engines, on the other hand, are passive. Because of that, it can be more effective in the long term. The consumer doesn’t feel the hard sell. The soft sell is not nearly as effective in the short term as the hard sell is, but search engines have a significant advantage over the conventional lead broker: volume. The most common form of online lead generation is the pay-per-click (PPC) approach.
Marketing research demonstrates that 50 percent of all purchases occur due to advertising, and strong advertising is by far the most effective form of lead generation on this list. It isn’t in the top spot, however, because it’s generally quite expensive, and it requires a large investment before it becomes cost-effective. Internet-based advertising is changing that to some degree, although online advertising has not yet proven to be as effective as traditional advertising.
Referral marketing is an effective and cost-effective means of achieving a steady stream of prospects. Generally, it works by providing an established client an incentive to bring the business a new client. That incentive is much cheaper than generating the lead through some other mechanism. Online, the referral approach is particularly popular among gambling operations. In this industry, prospects often fear a lack of integrity in the company, and a word-of-mouth approach is particularly effective at overcoming that.