Lead Generation Pricing Model Question

by jaudet
6 replies
Hey IM pros,

here's my situation. I've been successful lately in building an e-commerce with different partners. We provide high quality value to our customers.

Now, I want to translate that into helping local businesses by providing them high quality qualified sales leads. I want to provide them value, pretty much like I'm doing with my e-commerce. Value = success

That being said, in the past I did lead generation with a performance based pricing. Only problem is 2 businesses owner screw with me saying that most of the leads didn't convert while it was the complete opposite. I did not have access to their CRM so I could not verify the informations, unless I did it manually doing a followup with all the leads.

Anyhow, I want to try again but base my business model on a different pricing model.

Here's my question:
Provided that I will target niche that will put in between 5k-40k per job done, how should I fix my MONTHLY retainer, as this is the pricing model I want to use.

My goal is to provide maximum number of leads with X budget for ad spend each month, giving biz owners maximum value each month for my services.

What would be your position on the cost of the service, base on the value I will provide to them ?


Thanks a lot !
#business #generation #lead #model #pricing #question
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  • Profile picture of the author DABK
    Don't let them screw you over, get clear about what you provide them and make sure they understand it.


    A conversion is someone clicking on an ad, someone contacting a company, someone buying, etc.


    There are many conversion points.


    If they did not buy and you did not have control over the whole sale process, why is it your fault? I mean, it may be, but you cannot know for a fact.


    It is best if you work with people who're already advertising and converting leads they get from their ads into sales.


    It is best if you either sell them leads (i.e., you make their phone ring and you are responsible and get paid when their phone rings from a lead your system generates) or if you get paid by the sale, and then you are responsible for getting the lead you generate all the way through the sale process (case in which, you'll also be a sales person for that company).


    There are other options, but all have one thing in common: you and your client understand what you are responsible for and what they are responsible for and you and them have a system in place to know if you've done your part or not.


    Take your MaxBounty affiliate. Companies you could be an affiliate for have pages that convert (some better than others, but they convert). You send a person to the sales page, you do not get paid. That person purchases (or fills out a form), you get paid.


    Very clear, everyone understands... Of course, some seller have an optin form on their landing page... If someone you send fills out that form and hits enter, the seller starts email marketing to them and, if there's a purchase, the seller gets the credit, not you. Lots of affiliates do not understand this.


    So, you pick an offer that's free of optins.


    In the online world, you have to do similar things. Some business owners are clueless, some are greedy, some are both. You stay away from those. You find yourself successful businesses whose owners / presidents / managers understand that you're an asset, not an expense. (Assuming you deliver on your promises, of course.)



    Originally Posted by jaudet View Post

    Hey IM pros,

    here's my situation. I've been successful lately in building an e-commerce with different partners. We provide high quality value to our customers.

    Now, I want to translate that into helping local businesses by providing them high quality qualified sales leads. I want to provide them value, pretty much like I'm doing with my e-commerce. Value = success

    That being said, in the past I did lead generation with a performance based pricing. Only problem is 2 businesses owner screw with me saying that most of the leads didn't convert while it was the complete opposite. I did not have access to their CRM so I could not verify the informations, unless I did it manually doing a followup with all the leads.

    Anyhow, I want to try again but base my business model on a different pricing model.

    Here's my question:
    Provided that I will target niche that will put in between 5k-40k per job done, how should I fix my MONTHLY retainer, as this is the pricing model I want to use.

    My goal is to provide maximum number of leads with X budget for ad spend each month, giving biz owners maximum value each month for my services.

    What would be your position on the cost of the service, base on the value I will provide to them ?


    Thanks a lot !
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  • Profile picture of the author jaudet
    Thanks for your answer.

    My goal is to provide them qualified leads with assets I have control over.

    Afterward, it will be their responsibility and sale team to close the sale. That's why I was heading toward more a monthly retainer first since it's both safer for me and the business owner, knowing that I will provide maximum number of qualified leads for them. Like you mentioned, and I agree, I want to work with biz owners that understand the value I will provide their business with these qualified leads I'll send on a monthly basis.

    You're also right about the type of customers you DON'T want. Not everybody is your "market". I definitely don't want to make business anymore with greedy owners or the one you need to take by the hand. These are the most cheap customers anyway and will have trouble giving what you actually worth.
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  • Profile picture of the author Serene Carmen
    Hi there

    The model you are proposing is a good one i.e. "maximum number of leads with X budget for ad spend each month for a fixed monthly retainer". You should include a certain minimum amount of leads for a fixed monthly retainer amount and per lead price if they want more leads above the minimum agreed.

    Pricing should in no way be dependent on their corversion rates.
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    • Profile picture of the author jaudet
      Originally Posted by Serene Carmen View Post

      Hi there

      The model you are proposing is a good one i.e. "maximum number of leads with X budget for ad spend each month for a fixed monthly retainer". You should include a certain minimum amount of leads for a fixed monthly retainer amount and per lead price if they want more leads above the minimum agreed.

      Pricing should in no way be dependent on their corversion rates.

      Completely agree, thanks for your input Serene !
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  • Profile picture of the author Monetize
    Originally Posted by jaudet View Post

    Hey IM pros,

    here's my situation. I've been successful lately in building an e-commerce with different partners. We provide high quality value to our customers.

    Now, I want to translate that into helping local businesses by providing them high quality qualified sales leads. I want to provide them value, pretty much like I'm doing with my e-commerce. Value = success

    That being said, in the past I did lead generation with a performance based pricing. Only problem is 2 businesses owner screw with me saying that most of the leads didn't convert while it was the complete opposite. I did not have access to their CRM so I could not verify the informations, unless I did it manually doing a followup with all the leads.

    Anyhow, I want to try again but base my business model on a different pricing model.

    Here's my question:
    Provided that I will target niche that will put in between 5k-40k per job done, how should I fix my MONTHLY retainer, as this is the pricing model I want to use.

    My goal is to provide maximum number of leads with X budget for ad spend each month, giving biz owners maximum value each month for my services.

    What would be your position on the cost of the service, base on the value I will provide to them ?


    Thanks a lot !

    In most businesses, you are always
    going to have people who complain
    so don't let that deter you. They
    usually want a refund for whatever
    reason, even if your product is great,
    that is just life when you are in sales.

    You are the one who decides what
    your prices are. Perhaps MLM leads
    are priced differently than sales leads,
    or work at home leads.

    I would consider offering a couple of
    different ways for people to purchase
    leads. The monthly member fee is a
    good idea but some people might not
    want to sign up for a recurring fee.

    Therefore, I would also sell leads as
    bundles for example 500 leads for a
    certain price or however you choose
    to package those leads.

    Test different things to see what works
    the best.
    Signature
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    • Profile picture of the author jaudet
      Originally Posted by Monetize View Post

      In most businesses, you are always
      going to have people who complain
      so don't let that deter you. They
      usually want a refund for whatever
      reason, even if your product is great,
      that is just life when you are in sales.

      You are the one who decides what
      your prices are. Perhaps MLM leads
      are priced differently than sales leads,
      or work at home leads.

      I would consider offering a couple of
      different ways for people to purchase
      leads. The monthly member fee is a
      good idea but some people might not
      want to sign up for a recurring fee.

      Therefore, I would also sell leads as
      bundles for example 500 leads for a
      certain price or however you choose
      to package those leads.

      Test different things to see what works
      the best.

      Thanks Monetize for your pricing ideas.

      With this kind of business model, you definitely don't want to deal with the small pain in the ass customers like I call, been there done that and never again.

      I want to work with owners that see all the value I can bring to their business.

      Thanks for taking the time to answer.
      {{ DiscussionBoard.errors[11656201].message }}
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