The lead generation business is growing every day and Flexxable's pay-per-lead model has become a revolution. But as more people leave the ship with a retention contract, they find themselves a little lost. How much should you charge per lead in your industry? Is there a way to solve it or does it all come down to experience? You don't want to disconnect for months, only to discover that you're making half the profits you could make. The truth is that every industry is different and there is no one-size-fits-all answer.
That said, we have a cheeky little method for figuring out how much to charge. Use it as a general rule and it should point you in the right direction. This is a simple calculation to start with. We used this same method in Flexxable, and so far it hasn't caused us any problems.
Remember, this is only a rough figure, but it's a great way to find out how much your services are worth. So you've already calculated how much to charge per lead. Do you want to know how to sell with confidence? We have a video about that. As well as many others about lead generation.
Check out the Flexxable YouTube channel and subscribe. Escape “Retainer Prison” and put an end to nasty text messages, 26% of emails from the Prime Minister demanding that you do MORE work for less money. To start, let's say you're selling custom logos online with a website that gets 10,000 visitors a month. So let's say you convert 1% of your 10,000 visitors into email subscribers per month.
So let's say that of those 100 email leads, 15% are qualified. Now that we've evaluated what you're spending on marketing, let's see how many potential customers you've received thanks to your marketing efforts. For this example, let's say you've received 10 leads. There are many factors that determine the answer to how much you should pay for a potential customer, and they adapt to your specific business model.
There's no one-size-fits-all solution for everything you have to pay for a potential customer, and expectations can vary widely depending on industries and operating costs. If you're paying for traffic on Facebook or other sources of potential customers, make sure your landing page is optimized for conversions. Before you can calculate the most you can pay for a potential customer, you must calculate the maximum you would pay for a sale. Now that you've calculated how much you would pay for a sale, you need to calculate how much you would pay for a potential customer.