Wednesday, September 06, 2006

Pay-Per-Lead Advertising: Is It Worth It?

There are many different ways to expand your company's reach on-line. One such way is through lead generation or referral services that actively go out and collect potential customers and then offer them to you at a price. Below are some of the more widely known referral services on the web:






These are just two examples of classic lead generation portals that connect purchase ready consumers with qualified service providers. If done correctly, this type of business development tool can both help consumers find the right fit for their needs while also allowing the advertisers (service providers) a pay-for-performance method for expanding their business. What does this mean?

With most advertising media, a business will pay a large sum of money up-front in the hopes that future customers will make contact to inquire about their services. With Pay-Per-Lead advertising, you only pay when contact is made with a potential customer. What are the benefits of this advertising method?

As stated above, the majority of your advertising expenses occur AFTER an actual service has been provided (i.e. a customer has been delivered to your door). This allows your business a low-risk, performance-based way to grow your business. And unlike other forms of advertising, you can precisely track exactly how many new customer leads you have received from this method, and thus accurately determine your ROI with lead generation.

This sounds great, but how much does it cost? It depends on the value of the service or good you provide. Are you offering lanscaping services or customized internet solutions? One is obviously more expensive than another. The good news is that internet leads, compared with traditional advertising leads, are substantially less expensive. Here's a sample breakdown of one of our clients that provides plumbing and HVAC services:

Yellowpages: $40-60
TV: $60-80
Direct Mail: $60-80
Internet: $18-22

We invite you to determine how much you currently pay for each new customer inquiry you get from your other advertising methods. We're 100% confident our internet advertising methods can produce highly qualified customer leads for a fraction of the cost of any other advertising media you are using.

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