• Marketing Blog
  • HELPING MANAGERS MAKE BETTER VIDEO

Web-generated Sales Leads vs Traditional Sales Leads

By Kevin Rossiter on Wed January 31 2007 in the Marketing Blog HELPING MANAGERS MAKE BETTER VIDEO

Web-generated Sales Leads vs Traditional Sales Leads

Q: Is it possible to get a sample of your leads as I am a student studying business management?

Business Student
Manchester

A: We’re not a sales lead reseller so we don’t provide samples of leads as such. We develop business websites so they can produce qualified sales leads for their owners.

As a business student, perhaps it’s worth comparing this new internet marketing approach with traditional methods of lead generation, such as direct mailing, print advertising and telesales.

Direct Mail
Direct mail involves buying-in mailing lists, arranging mailer design and print, and then stuffing and posting the envelopes. You could spend upwards £1,000 on 5,000 postcard mailings if you outsourced this to a direct mail specialist.

And prices could go much higher, especially if you want to design a high impact mailer that really catches the attention.

If you have a proven mails-to-leads conversion ratio, then you can control this spend as part of a managed marketing budget.

The upside is that direct mail has long been a proven formula for winning sales leads in most marketplaces.

The downside is the cost, especially where mailer design and printing proves expensive.

And you’ll never really know how well it works, ie, how many qualified B2B sales leads each mailshot delivers, your conversion rate, until you try.

Another downside is that once the mailshot is over, there’s almost no residual value. You have to do it all over again to get more leads.

But this works for some companies, particularly office supplies and sundries where there is repeat customer potential, and each mailshot can be produced sufficiently cheaply.

Print Advertising

You can spend £2,000 upwards for a single ad in a trade magazine. Spread this across a few magazines, and before you know it you’ve spent £10,000. So you have to get it right.

Small ads are less risky, but they don’t have the impact that large colourful ads do. One marketing director I know spends around £250,000 a year on relatively small ads. It pays as the adverts produce sales enquiries, which are for high value products.

So one lead that pays off might be worth a big deal.

Telesales

To make telesales succeed, you have to find the right telesales person, have the right telephone lists, and manage them well so that they like working for you - otherwise they’ll leave, and you have to start over again.

There’s a high initial cost finding the right person, and getting them trained. And there’s a relatively high failure rate.

If they’re good, then telesales can be very effective.

But it’s getting harder and harder to get to speak to many companies, who are strict about unsolicited telesales, and automatically reject many calls.

A call centre who contract to win you sales leads might be the solution.

Web Leads

Larger and larger numbers are sourcing suppliers from the web. Like you, they use Google.

Neglecting this opportunity, sales-wise, is almost criminal.

Here are large herds of potential online customers wanting to buy or enquire.

But many businesses still ignore this, or pay insufficient attention to sourcing sales leads from the web. It’s not a part of their sales process.

My experience tells me that this is because they don’t understand how web marketing works.

They come from a generation that never bought from the web and, while they’re determined and resolute marketers, they’re still baffled by the terminology and all the many sophisticated aspects to emarketing.

The solution is to get professionally trained, or pay an outsource web marketing company to do it for you.

Expect to pay anything from £5,000 upwards.

A big plus to winning sales leads from the web, is that many web marketing techniques have a high residual or ongoing value. You put in the initial effort, but it goes on working without you having to spend.

One professional marketer I know recently cancelled his £8,000 per month web advertising spend, relying solely on free traffic from search engines.

Guess what? His monthly turnover was unaffected. In fact it went up. Now that’s a high residual value.

I hope this short comparison between web-generated sales leads and traditional sales leads has been useful.

© Studio Rossiter 2007

Topics: Marketing, Web Q&A

Kevin Rossiter

Written by Kevin Rossiter

Related Posts

ADD A COMMENT