How Do You Know How Much Leads Are Worth?

Fiver

Fiver

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Jan 30, 2009
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Obviously leads are worth what somone is willing to pay for them.

But where do you start the bidding? Is there a formula to use to figure out the high point of what you should be asking a client to pay for your leads be it a product/service and 1-time vs. rebill?
 


Price of service or lifetime value of customer / average number of leads before a sale.
 
try to buy them yourself and see what the market has priced them at

Is there a formula < it's something like pixelo wrote
 
it really depends on the quality of the lead.

When I was doing SEO leads, I filtered out all the bs leads before sending them to the vendors. Also filtered them based on income. Because of that I was able to charge $25/lead for leads with a small budget, and $50/lead for leads with a large budget.

And I sold that to 5 vendors, with the option of getting an exclusive lead for $125/$250 per lead.

BTW that exclusive lead pricing, wasn't even my idea...one of the vendors offered that himself, since the leads were very high quality.

So as long as your leads convert, the vendors will be willing to pay you a ton of money. Since even at $250/lead, it's worth it if they can land a client who'll pay them $2.5K/mo
 
pixelo said:
Price of service or lifetime value of customer / average number of leads before a sale.
Click to expand...

Isn't this the breakeven value for the lead when looking at it from the client's POV?

Also, what if client doesn't want to purchase leads and instead wants to pay you a % of the sale. What is a good % to ask for and expect to get?
 
Fiver said:
Isn't this the breakeven value for the lead when looking at it from the client's POV?

Also, what if client doesn't want to purchase leads and instead wants to pay you a % of the sale. What is a good % to ask for and expect to get?
Click to expand...

Yeah its break even, if you can beat that with lower marketing costs, you generate increasing % of profit.
 
So I ask again:

What if client doesn't want to purchase leads and instead wants to pay you a % of the sale. What is a good % to ask for and expect to get?

And is there any way to get increased visibility in the sales cycle so you don't have to blindly take the client's word for when there is an actual sale?
 
You don't have to worry about the client screwing you over if your leads are quality and they are making money from them. IF you don't get anything for the leads then the client will know that you'll just move on to the next company to see if they can convert your leads. You're adding value to them, not the other way around.

If your leads are good then your time will get compensated accordingly. Surely you have some idea what the lead is worth to a client so based on that work out how much effort you put in to get the lead. You can always shop around if you have a quality product.

Best bet would be to find a recruitment site and see what a salesman on commission-only earns based on revenue.
 
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