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Valid Questions & Answers about Lead Generation

Here are some frequently asked questions and my responses:

"I am REALLY SERIOUS about building my XXX business. Right now I am buying leads from XXXXX (A lead generation company that is also a network marketing company) at 80 cents apiece. How much different are your leads at $5.00 apiece compared to XXXXX's. I know you mentioned that you call each lead and they say that they are interested in earning some extra money from home but for the difference in cost of the leads, how can I sure that they will like my business opportunity.

I could buy 12 leads, let's say for $60.00 and not sponsor a single person. But I could put $90.00 more towards buying leads and buy 1000 leads from XXXX. I know there are no guarantees out there but for the difference in price I need something than just playing "Russian Roulette".

I would like to try your leads, but I am just a bit skeptical that's all. "

Great question! ! Here's my opinion. You can look at the facts and draw your own conclusion.

Please remember... everything that I say is not making a value judgment of the people running or working in the companies that operate like this.

There are several dynamics here that determine the price, value and quality ...

So put on your thinking cap and see if you see what I see. But buffer my responses... I am biased.

I will discuss:

1) "We went to them" versus "they came to XXX",

2) How many times was the lead sold,

3) The actual price per lead,

4) What's the focus building a mlm or generating quality leads?

First, you identified, but may have overlooked that, "we call them"... We actually went through all the barriers that you need to go through when contacting prospects... voice mail, answering machines, all the wrong types... Versus the other company does advertising over the Internet, through various publications, or through card decks. The benefit of us calling them should now be obvious. Just the fact that we called... told them that we would be putting them in front of someone that was going to call them back about an opportunity ... means that you could be the only one "fishing in the pond" for your prospect. The fact that XXX got their leads through advertising means that you are probably "fishing" with lots of others... fishing for the same prospect. You already know your prospects become dazed and confused. Even if you get them in your deal... don't you think the others keep calling your new distributor?

Besides... where did they advertise for their leads? Usually in the trash publications loaded with deals you wouldn't even consider... Or through Free Forums online that are just as bad.

What did they offer? Usually something free... a free report ? Free brochure?

Add both together and whom are they mostly attracting? Trash and dazed and confused people looking for freebies.

Of course this is a major generalization... so don't take this out of context. In every pile, there's bound to be a few good ones. But, now you have to consider the value of your time and then the actual real cost of the lead.

Next, the cost of the lead. Think about it. You'll like this one. Have you ever done any advertising?

How much does it cost you to get a response from a newspaper ad? A magazine? A card deck? A banner on-line? Naturally it depends on what you advertise for. If you don't know... the cost for an ad from a paper could be $10-$30+ per response. From a magazine...$20+ to $300+. From a card in a deck about $10. On-line? Who knows? I have seen $5-$100. By the way, that's just to generate a "response", not a qualified lead... If you ever ran an ad... Is every one that calls "a good lead"? Your cost per "qualified response" would be much higher.

But let's not confuse the subject of whether the response is a good one or not.

Simple math, let's say the average cost to generate a "lead" is about $10. Could you set up a company that generates leads that cost $10 each and then only sell that lead one time, to one person, for 80¢ ? And then set up a program where you give "Free" leads as you recruit others to get into the XXX program with you?

Your company wouldn't last long. The Bankers wouldn't give you the money top start up that company! So, by the very definition of your business plan you would have to sell the lead at least 12 times to break even. And I don't think you would want to break even... you probably want to make a profit... and maybe handle overhead and salaries and all the other costs associated with running a business. So, whatever numbers you want to plug in here... the leads are sold way too many times. That's not even taking into consideration that the prospect probably answered or responded to several other offers in that same publication, card deck, etc.

By comparison, my leads initially cost about $10-$11 to generate. These are sold only 1 time as a fresh lead with a 60-day exclusive for $15. Then maybe a few other times (maybe three to five tops) as an Aged lead for $5. Many leads are only sold once. That's because we also offer you an opportunity to tell us to remove your new distributor from our database so we don't sell that lead to anyone else. We would never want to interfere with your new baby in the business. That wouldn't be fair. You worked too hard to get him.

We handled the cost per lead and how many times it was sold... what we didn't discuss about your 80¢ lead is how many wrong or disconnected people you get right up front. This, by itself, would raise your cost per lead immediately. By the way, we "overfill" our Aged leads up front, because we know that people move around.

By now you can see it would also be pretty hard to keep the quality high and the cost low... then throw in the mlm spin... with additional commissions and overhead being paid out... and this LEADS monster you have to feed every month ...I believe you get the picture on how this business model cannot work.

The bottom line... you cannot network market leads. It's not an "mlm-able" product... not if you want the quality to be there. You cannot also sell "cheap" leads... without having to sell the too many times.

Because of the Leads Monster I have to feed everyday for our profiling process, I must gather names to call for my company. I always try to find the right raw materials to work with &otherwise I can't make my numbers work. These leads I call my Database leads. We call through these types of leads ourselves. I also make these leads available for sale for 15¢ each. You can get these by the 1000 for $150. The difference between the profiled leads and the database leads is that you have to do the work yourself on the database leads. We know there's good ones in their &you just have to find them. The database leads are good for a mailing program or if you are trying to blitz an area. Since I am very selective of the names I use, you can be assured that database leads are not "washed out" like other lists are. I think we covered most of the bases!

There's your brief education.

Sincerely,

Peter

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