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  • #976835
    The Infotainer
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    Hello

    As I attempt to market my services to trade show exhibitors the Cost per lead question has popped up again

    Problem- I don’t want to cold call exhibitors up

    I have a solution where as a marketing company will charge me $500 per quality lead and meeting for a trade show client (they will cold call multiple companies to get that 1 lead/meeting)

    Companies don’t want to spend that much on trade show enertainment despite the results I achieve and my guarantee, so with that in mind

    does anyone have a formular for “if My price is _________ what should my cost per lead be” and then what percentage of

    I realise I charge whatever I think I should get, but I just wanted to know if their was a magic number percentage of cost per leads v’s actual sales

    #1087889
    Shaukat Adam Khalid
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    $500 per lead in the US is ridiculous. You’re better of putting $100 on learning google adwords and then $400 on the campaign. You will get quite a few leads that way.

    You have to consider looking at the lifetime value of the customer and not just the initial price or else you won’t be able to get much inroads.

    If you must, use 30% as a figure since you are starting fresh there. Why not turn some of your knowledge into a bookley and some videos and then call some businesses asking if they would interested in the material. not to sell them anything but if they bring up the topic, what’s wrong with that?

    The other option is to use the booklet, pay some college kid to make the cold calls for you. it’s not selling, just giving away information in exchange for contact details to follow up and convert over time.

    More people will be open to the idea compared to cold calling to make a sale or appointment.

    in one week, you should get at least 5 sales and at least 250 leads to work with and still have some change out of the $500.

    #1088055
    Shaukat Adam Khalid
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    $500 per lead in the US is ridiculous. You’re better of putting $100 on learning google adwords and then $400 on the campaign. You will get quite a few leads that way.

    You have to consider looking at the lifetime value of the customer and not just the initial price or else you won’t be able to get much inroads.

    If you must, use 30% as a figure since you are starting fresh there. Why not turn some of your knowledge into a bookley and some videos and then call some businesses asking if they would interested in the material. not to sell them anything but if they bring up the topic, what’s wrong with that?

    The other option is to use the booklet, pay some college kid to make the cold calls for you. it’s not selling, just giving away information in exchange for contact details to follow up and convert over time.

    More people will be open to the idea compared to cold calling to make a sale or appointment.

    in one week, you should get at least 5 sales and at least 250 leads to work with and still have some change out of the $500.

    #1087890
    yourvirtualboard
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    All marketing should be measured on ROI and attaining qualified leads is (for me) the primary function of marketing. Most effective marketing has a cost associated. I would consider this very targeted and delivering well qualified leads and apart from the payment very little effort from you is required – conversion remains your responsibility though.

    To work out ROI – As Khalid says it’s lifetime value that you need to consider and what ratio is that to the inital outlay. If $500 gets you a one off show for let’s say $2,000 then that’s the lifetime value and you need to feel comfortable with that ratio / return. If however $500 gets you a client that books you for all their work and that is even twice / year for let’s say five years – we then have $20,000. I’m sure most would gladly pay $500 for that opportunity.

    #1088057
    yourvirtualboard
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    All marketing should be measured on ROI and attaining qualified leads is (for me) the primary function of marketing. Most effective marketing has a cost associated. I would consider this very targeted and delivering well qualified leads and apart from the payment very little effort from you is required – conversion remains your responsibility though.

    To work out ROI – As Khalid says it’s lifetime value that you need to consider and what ratio is that to the inital outlay. If $500 gets you a one off show for let’s say $2,000 then that’s the lifetime value and you need to feel comfortable with that ratio / return. If however $500 gets you a client that books you for all their work and that is even twice / year for let’s say five years – we then have $20,000. I’m sure most would gladly pay $500 for that opportunity.

    #1087891
    AgentMail
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    I don’t think $500 per lead is expensive if the ROI is there. I would imagine that the type of client that does trade shows either does multiple trade shows or goes to the same ones every year, so makes their lifetime value quite high.

    Only you can really answer what ROI is worthwhile.

    What you must bear in mind as well is that not every lead will convert to a sale. It is important to understand your lead to sale ratio in order to work out the break even cost. If it is 20%, you need to spend $2,500 to get a sale. If your cost is $2,500 per trade show (I am completely guessing), and an average client uses you at least 4 times, are you happy with $10,000 for a cost of $2,500

    The only other thing to think about is using a company that is solely focussed on providing you with leads/appointments can sometimes be less than perfect in maintaining your company image. Their methods are usually churn and burn. They know they need to get you an appointment, and so if it takes 200 calls, they will get through those as quick as possible, not neccesarily concerning themselves with the impression they leave on those that are not currently interested. This is just a general obsveration, and of course not all companies will operate this way

    #1088059
    AgentMail
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    I don’t think $500 per lead is expensive if the ROI is there. I would imagine that the type of client that does trade shows either does multiple trade shows or goes to the same ones every year, so makes their lifetime value quite high.

    Only you can really answer what ROI is worthwhile.

    What you must bear in mind as well is that not every lead will convert to a sale. It is important to understand your lead to sale ratio in order to work out the break even cost. If it is 20%, you need to spend $2,500 to get a sale. If your cost is $2,500 per trade show (I am completely guessing), and an average client uses you at least 4 times, are you happy with $10,000 for a cost of $2,500

    The only other thing to think about is using a company that is solely focussed on providing you with leads/appointments can sometimes be less than perfect in maintaining your company image. Their methods are usually churn and burn. They know they need to get you an appointment, and so if it takes 200 calls, they will get through those as quick as possible, not neccesarily concerning themselves with the impression they leave on those that are not currently interested. This is just a general obsveration, and of course not all companies will operate this way

    #1087892
    Shaukat Adam Khalid
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    A reminder that the OP is talking about cost per lead and not cost per sale or lifetime value of the customer.

    $500 may be great if you can get $2500 or $20k but as a responsible business owner, wouldn’t you want to know if you can reduce your cost per lead?

    Isn’t that what optimisation all about or am i too analytical when it comes to marketing?

    If the leads are hight quality, i would offer $100 per lead and a % of any sale.

    #1088062
    Shaukat Adam Khalid
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    A reminder that the OP is talking about cost per lead and not cost per sale or lifetime value of the customer.

    $500 may be great if you can get $2500 or $20k but as a responsible business owner, wouldn’t you want to know if you can reduce your cost per lead?

    Isn’t that what optimisation all about or am i too analytical when it comes to marketing?

    If the leads are hight quality, i would offer $100 per lead and a % of any sale.

    #1087893
    yourvirtualboard
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    As I stated conversion remains your responsibility and with a 50% (poor considering that they are qualified leads) conversion rate then ROI is halved etc. etc. I have personally used this type of service a few years ago and my conversion rates were around 90% (still have some of these clients today).

    As with every subject/topic/issue, everyone has an opinion but only you can determine what ROI you are happy to go with and how good your conversion rate will be.

    #1088063
    yourvirtualboard
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    As I stated conversion remains your responsibility and with a 50% (poor considering that they are qualified leads) conversion rate then ROI is halved etc. etc. I have personally used this type of service a few years ago and my conversion rates were around 90% (still have some of these clients today).

    As with every subject/topic/issue, everyone has an opinion but only you can determine what ROI you are happy to go with and how good your conversion rate will be.

    #1087894
    NickHumphries
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    Like what most people are saying here, the cost per lead is completely irrelevant! The return on investment is the most important thing, and what’s a few hundred dollars anyway if your making thousands in terms of lifetime value?

    #1088065
    NickHumphries
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    Like what most people are saying here, the cost per lead is completely irrelevant! The return on investment is the most important thing, and what’s a few hundred dollars anyway if your making thousands in terms of lifetime value?

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