Pricing leads
- Thread starter patates
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charge more
you're giving him gold, it's his fault if he can't convert them. you shouldn't even take into consideration his closing ratio. you just have to value the leads. you say they can make him $1000... so earning $2 is laughable imho.
you're giving him gold, it's his fault if he can't convert them. you shouldn't even take into consideration his closing ratio. you just have to value the leads. you say they can make him $1000... so earning $2 is laughable imho.
Agreed. It's on his ability to convert the leads. Price them at a one or two percent conversion rate if they backed out for him on average
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This is always a question that pops up when negotiating a price point for the leads. You really need to start at a baseline price and be up front with the advertiser/buyer that the baseline/starting price is just that - a starting price. Depending on how the leads back out for the advertiser/buyer the CPL price can go up or down. People need to understand that everybody needs to make money starting from the buyers all the way downstream to the affiliate. Some affiliates have the misconception that they should be paid a huge amount for a lead no matter if the lead sells to the buyer for that amount or not - you are completely wrong.
We negotiate with advertisers/buyers all the time and we usually negotiate on the high side to start out. We tell them we will run a cap of say 500 leads a day for X amount of days. The amount of days will depend on how long it takes them to tell if the quality is backing out. The vertical will depend on how long it takes them to know if the quality backs out. If you are not working with some sketchy advertiser they will adjust your payout (up/down) according to the price they are selling the leads to the buyers. If they are not doing this or you are not negotiating this up front then you are not handling business right.
$1 per lead sounds low for anything. The lowest for a unique hot lead generated should be $3 a lead and that is on the extreme low side. You have to factor in not every lead is going to turn into a sale but once the advertiser/buyer has the consumers info and demographic they can try and sell them other offers as well. Bottom line is make sure you are working with a reputable advertiser/buyer and negotiate from the beginning and always get things signed via a legal contractual agreement.
If you don't have the experience to negotiate with whomever you are dealing with hit me up and we can handle the negotiation with you and you can work through us. Obviously we will take a margin off the top but you won't get jacked around and our biz dev team is very aggressive in negotiating and have a lot of experience doing it. If you think you can handle it yourself just don't shortchange yourself, control the conversation, control the negotiation, and overall you need to play the role of the boss.
Again, if you need some help hit me up and we can handle the business side of it for you and get you the best CPL. Obviously only hit me up if you are doing volume or can do volume because 10-20 leads a day isn't going to be worth anybody's time.
Brian
We negotiate with advertisers/buyers all the time and we usually negotiate on the high side to start out. We tell them we will run a cap of say 500 leads a day for X amount of days. The amount of days will depend on how long it takes them to tell if the quality is backing out. The vertical will depend on how long it takes them to know if the quality backs out. If you are not working with some sketchy advertiser they will adjust your payout (up/down) according to the price they are selling the leads to the buyers. If they are not doing this or you are not negotiating this up front then you are not handling business right.
$1 per lead sounds low for anything. The lowest for a unique hot lead generated should be $3 a lead and that is on the extreme low side. You have to factor in not every lead is going to turn into a sale but once the advertiser/buyer has the consumers info and demographic they can try and sell them other offers as well. Bottom line is make sure you are working with a reputable advertiser/buyer and negotiate from the beginning and always get things signed via a legal contractual agreement.
If you don't have the experience to negotiate with whomever you are dealing with hit me up and we can handle the negotiation with you and you can work through us. Obviously we will take a margin off the top but you won't get jacked around and our biz dev team is very aggressive in negotiating and have a lot of experience doing it. If you think you can handle it yourself just don't shortchange yourself, control the conversation, control the negotiation, and overall you need to play the role of the boss.
Again, if you need some help hit me up and we can handle the business side of it for you and get you the best CPL. Obviously only hit me up if you are doing volume or can do volume because 10-20 leads a day isn't going to be worth anybody's time.
Brian
If he/she/they can't close the leads that's his/hers/their fucking problem not yours. Price them what the going rate is for them.
If he/she/they complain then show him this.
[ame="http://www.youtube.com/watch?v=y-AXTx4PcKI"]Alec Baldwin - Best performance - YouTube[/ame]
If he/she/they complain then show him this.
[ame="http://www.youtube.com/watch?v=y-AXTx4PcKI"]Alec Baldwin - Best performance - YouTube[/ame]
I would recommend basing your lead sale price on a multiple of your cost average. That is what I do.
As an example, if your average cost for a lead generating site is $2000 per month after advertising costs and you generate 1000 leads your cost averages $2.00 per lead. It would be reasonable to charge $4 to $5 per lead on contract or $7 in small lots as ordered. Figure a 10% replacement cost for refunding bad leads to keep the clients happy.
As an example, if your average cost for a lead generating site is $2000 per month after advertising costs and you generate 1000 leads your cost averages $2.00 per lead. It would be reasonable to charge $4 to $5 per lead on contract or $7 in small lots as ordered. Figure a 10% replacement cost for refunding bad leads to keep the clients happy.
That's why people him him/her need to go through someone that knows what the hell they are doing and not just wandering off in left field not knowing what they are doing. I can assure you the person has to legal contractual agreements written up or anything of the sort either.
It's funny because I agree with you but I guess I was just being nice about it. LMAO!
Brian
It's funny because I agree with you but I guess I was just being nice about it. LMAO!
Brian
Answer = $5.00-$3.50
Rule of thumb is business is to double roi. If you generate 100 leads and he closes 1% (1 sale) making him $1,000 - he would need to buy 100 leads in that price range to double his roi. So that would be the ideal answer.
Ignore the rest of these goons saying if he doesnt convert, thats his fault- its not. Your leads just probably suck. For example; I sell debt management and debt settlement services. When we generate organic google leads we tend to close in the 13-20% closing range. Yet, when we generate craigslist leads, we close at 1-1.5% on average. Does that mean we suck? No - it means the leads do.
So if you want more money for the leads, generate better ones - otherwise thats all the leads are worth (this figure also didnt calculate his time into).
