Looks like you’ve made the (right) decision to go with lead generation for generating customer interest in your business! Lead generation is a big factor in digital marketing, and if you’ve decided that your business needs it, then you probably have the same question that many other business owners do as well:
How much does lead generation cost?
That’s a great question! People are spending more and more on digital marketing in the US (and pretty much everywhere else), and mismanaging that budget can turn out to be problematic.
Everything comes with a price, and lead generation is no different. So, without further ado, let’s talk about lead generation costs in the USA.
It’s All Subjective!
We wish we could give you an objective, cookie-cutter answer to the all-too-common “how much does lead generation cost in the USA” question, but we can’t! And, here’s why:
Lead generation cost is totally subjective! This means that the amount of money you’ll be spending on lead generation depends on many things, such as your budget, the number of leads you are aiming for, the type of leads you wish to get, the industry you operate in, and other factors.
Before we get into more detail, let’s first talk about what a lead actually is before going into discussing the average cost of lead generation.
Anyone who takes an interest in your business and shows up on your website can be considered a lead. Even if they don’t purchase your product or service, they are still leads.
But what’s the point of spending your hard-earned money on leads that do not convert? You don’t want window-shoppers who stare at what you offer and leave. You want leads that actually generate profit!
That’s why you need to focus on the following type of leads:
- Marketing Qualified Leads (MQLs)
- Sales Qualified Leads (SQLs)
Both types of leads can positively impact your sales efforts, however, it’s important to know the difference between the two.
A Marketing Qualified Lead or an MQL is a lead that you were successful in attracting toward your business that has the potential to become paying customers.. Basically, you have managed to peak their interest, but you still need to reel them in. SQLs, on the other hand, are leads that have actually engaged with your business directly by either filling out a form on your website, downloading any free goodies, or buying your product or service.
If you haven’t already guessed, SQL leads are the more desirable leads. Although it is important to note that many SQLs were originally MQLs that were nurtured and advanced by determined sales professionals. SQL probably used to be an MQL at one point! Both types of leads have an excellent chance to be converted into paying customers, which is why both are offered at PMG360. Being able to distinguish the difference between leads is important, but it’s just the tip of the iceberg. There’s much more to learn about lead generation.
A Common Lead Generation Mistake
One common mistake in B2B lead generation that we frequently see at PMG360 is businesses turning to cheap “lead generation companies” for leads. Why is this an issue?
Remember that famous line from Forrest Gump which said that life is like a box of chocolates; you never know what you’re gonna get? Well, buying lead lists from lead generation companies basically operates on the same principle. Meaning you can buy a large list, but only a very small portion of leads may turn out to be useful. And even then, there’s no guarantee. The reason this happens is because inbound marketing techniques have changed over the years, and what used to work perfectly before, simply doesn’t cut it anymore.
Most of these lead generation service companies fish leads either from a database, or by using software which can extract leads from social media platforms like Facebook, Instagram, or LinkedIn. Like an old box of chocolates, these lists are often full of unimpressive “morsels” “bitter chocolates” or simply just the wrapper, and no substance at all! Get the analogy? Great!
You want customers who are hot leads, and customers are looking for services that meet their needs ASAP. Think about it in fast food terms. Customers want it fast and efficiently. And guess what? So do you! That’s just how the cookie crumbles these days. Speed and order gets the job done. Today’s new customer acquisition and digital marketing techniques are developed with this in mind, resulting in better ways to get real, decent leads. Email marketing, for example, is one of them. You can read more about that here.
Avoiding lead generation pitfalls is key to the success of a lead generation campaign, but there’s more to learn about the process. We know why you’re here! So, let’s finally get down to it:
What lead generation pricing options am I looking at?
We’ll walk you through it. However, please keep in mind that the prices mentioned here are ballparks, and may vary depending on the situation.
First off, which industry are you looking to get leads in? Because that is a determining factor we always look at when we want to calculate cost per lead. Depending on the industry, the pricing may shift from anywhere between $30 to $200.
Then comes the second factor: the lead generation channel
Where do you want to get your leads from? Depending on your preference, the pricing can vary. For example, social media advertising is usually a cheaper variant, starting anywhere from $40-$50 per lead. You can also use a sales funnel. Obviously, generating leads from channels which are tested and true (TV ads, magazines, newspapers) can be more costly and in more than one case study, we’ve seen prices as high as $700 per lead.
Another determining factor is how big your business is, and how much budget you are willing to dedicate to generating leads. If you are a larger business with a substantial sales team, then you may have more wiggle room. Smaller businesses usually tend to spend less, because their budget is not as big.
Then comes the billing method of choice
You can opt for a company that offers per month billing, which will allow you to calculate a fixed cost based on your budget which you know you will have every month. This may range anywhere between $40 – $400 (and up) and is likely the most cost-effective option. The other variant is billing per appointment. This option can range between $1000 – $10,000. However, the cost may vary based on how many appointments you would be willing to set up.
As you can see, the cost of lead generation through a B2B company may vary depending on many factors. At PMG360, we offer real, hot leads (as well as other solutions) with the best base pricing options which you can check out right here on our PMG360 Rate Card page. If you have questions or need more detailed information, please feel free to reach out to our consultants –totally free of charge! Contact us today, and let’s get your business to the next level together! Oh, and don’t forget to check our blog for more quality reading material!