At first glance a pay per lead payment model may seem straightforward when working with an outsourced B2B lead generation firm. The client pays the outsourced partner a pre-determined amount of money each time a lead is generated. However, it turns out that a pay per lead model is not all that simple and takes time to build. There are some outsourcing partnerships where a pay per lead model makes sense, but what’s most important is that they can generate a return on investment.
A pay per lead payment model can make sense for companies that have been working with an outsourced lead generation partner for at least one year calling the same audience month-over-month with the same approach. With a minimum of a year, there is data on the time and resources it takes to generate leads and there has been time to work through what types of leads are qualified and which ones are better suited for a nurturing program. With a minimum of a year, seasonal trends can be identified and the sales cycle will start to show lead to sale conversions (although this can take multiple years for many B2B organizations).
A pay per lead model can also make sense if you’re working with an outsourcing partner that only generates one type of lead within a narrow industry segment. The sale is generally less complex and benchmarking data for one client can easily be applied to other clients.
Clients that have never generated leads through calling, that have niche markets, new products or services and/or complex sales should consider finding an outsourcing firm that can partner with them to build out a function that generates qualified leads while tracking appropriate metrics to make sure an ROI is generated and continues to grow.
At the end of the day, ROI is the key metric to measure and prove. Having the right outsourcing partner to help you achieve this is what is most important.
Publish Date: October 15, 2015 5:00 AM
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