• The Shortfalls of Pay-Per-Lead Guarantees

    In our interactions with prospective clients, we have noticed that one of the main concerns B2B professionals have about outsourced lead generation is the lack of guarantee.  In the search for ways to provide a guarantee to clients, the majority of lead generation companies have adopted a pay-per-lead model: the client is billed based on the number of leads delivered by the outsourced sales reps. This model helps ease client concerns such as:

    1. Our solution is complex for us to outsource and we are not sure how well an outsourced sales team can sell it.
    2. Even though you may have called into our vertical we need to be assured of the number of leads the outsourced team will generate for us.

    Since you, the client, only pay for the number of leads you are delivered, the risk on your investment is consequentially decreased – or so it seems.

    pay-per-lead

    In this model, the key issue is that you are challenging the lead generation company on a quantitative level only. From their perspective, the more leads they hand over to you, the closer they are to meeting your expectations.  The focus on quantity becomes the number of leads and takes away from time that should be devoted to lead qualifiers such as:

    • Accurate titles of valid decision makers
    • Capture of accurate business triggers within the prospect’s business and most importantly
    • Relevant conversations notes that state the lead sent over is definitely interested in your company and product versus your competitors

    This means that they would have to provide you with leads that generate qualified opportunities and pipeline for your sales teams to follow-up on and close, not just a ton of leads.  They have to be invested in the long –term business development of your company.

    When outsourcing lead generation/sales, you are not merely hiring people to make sales calls on your behalf; you are buying resources and processes. You are not solely buying warmed up leads, you are partnering up to construct a pipeline and grow your business.  Your lead generation partner should be as invested in your business as you are.

    Think about the cost if you chose to insource your lead generation versus outsource.  That is an expensive endeavor that requires internal buy-in, more budget and overhead than outsourcing itself, and may take months to get off the ground.

    Outsourcing lead generation/sales can be quite an investment and naturally, B2B organizations are looking for ways to decrease risk while maximizing return.

    How do you find a partner and not a mere vendor? These questions are answered in our next blog post. Read now.

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