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What To Charge For Lead Generation?


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#1 Scott Volk

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Posted 01 July 2008 - 01:00 PM

Hello,
I have an understanding how most PPC organizations charge ecommerce sites for their services, but what do most PPC organizations charge when the their clients goal is lead generation?

Thanks,
Scott

#2 phaithful

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Posted 06 July 2008 - 11:59 PM

Welcome to the Forums Scott!

Just as a suggestion, you might want to specify your question a bit more, because I bet you'll end up with a lot of answers like "It depends."

Because, it really does depend on a lot of different factors. Most importantly the industry which you want leads in and what the profit margins are for each lead. In addition, what type of leads are you looking for?

For example, you'll see a lot of PPC lead generation done for the legal industry and more specifically for DUI or DWI lawyers. Each of these clicks can range from a few dollars upwards to $30+ per click. This is primarily because the profit margin for taking on a DUI client is fairly high since it is a fairly routine procedure and the lawyers know exactly how much their cost is.

In addition, because of the industry they know that the majority of the people searching for or click on these type of ads are in a position where they need the help and they would reasonably have a higher conversion rate than some consumer related goods. In addition, the competition is pretty fierce in the legal sector so a higher bounty is needed to get the premium clicks.

In some other industries it's common to have "incentivised" leads (e.g. "Click here to receive your free ______") You'll have to be careful because incentivised leads can often have poor conversions, again depending on the campaign and the related incentive being provided.

And lastly, some PPC agencies / organizations / lead generators, (again depending on the industry) may commonly request a rev share or bounty for each converted lead on top of the actual lead generation.

That's sort of the tip of the iceberg. The lead generation community has been around a lot longer than PPC, and the many different revenue models of the lead generators have been adapted to PPC.

#3 RssFeed

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Posted 24 July 2008 - 06:42 AM

If you are like a lot of companies dependent on client leads to keep afloat, you may be noticing a trend from some of the lead generation companies out there. Not only are the leads expensive, but they aren't as strong as they used to be. We are hearing this again and again from our clients who are shifting their budgets to crank up the stronger quality pay per click search leads.

Interestingly, one of the sources that lead generation companies use to develop leads is pay per click search traffic. Many will end up marking up the costs to you and then shelling the same lead out to multiple vendors. If this sounds like your situation, perhaps you ought to think about ditching the go-between and head straight to the source of traffic.



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