How do you discover the value of a lead? It must all depend on the industry or course. The value of a lead is dependent on the product or service being sold. Lets say the product being sold is $100 dollars and the seller will close 1 out of every 10 leads. The lead value of the call who equate to $10. This isn’t factoring in the profit margin but it gives you an idea of lead value if you were pithing a prospect.
Generating leads is an absolute must if your business survives on leads. Revenue comes in many different ways and you need to take advantage of all steams of revenue in order to stay afloat in a competitive marketplace. Be willing to take risks with to streams of lead generation. Whether its with youtube, social media, or paid advertising, you can do the math to enable a successful lead campaign.
What are your margins? Before you can successfully map out a lead campaign you need to know your profit margins. Lets say you are interested in running Adwords for your personal training company. Each client you have produces you monthly revenue of $100. The lifetime value of your client will be 6 months at $100 per month equating to $600. You should be willing to spend at least 20% of the lifetime value of that client in order to bring him on board. Once you know your numbers you can scale your business and meet the goals you set based on your profit margins.
Turn your goals into math equations. This gives you measurable data to work with that can easily be understood when translated into graphs for your partners. Use the data to your advantage and adjust accordingly for profitable returns.