What is The Price of Lost Leads

What is the ultimate result of lost or discarded leads? Well, really there is only one answer to
that question. You’ll have to seek out more leads. And thus the process begins again. You’ll pour
more money into lead generation or purchase, make the quick sales, lose or discard the rest,
and have to find more leads again.

And in this process, not only are you spending more money in marketing
efforts and in purchasing leads, but you’re leaving thousands of dollars just
sitting on the table.

I want to do a quick calculation. Let’s say your company spends $2,000 on marketing materials
and is able to generate 100 leads. Of those leads, 5 people instantly become customers and
spend about $300 a month. Over the next 12 months, your company brings in $18,000. That’s a decent return on your investment.

Now, what if 20 of those leads will eventually become customers but weren’t ready yet? However, you followed up with them until they were. To make this easy, we’ll say all 20 warm leads sign up after one year. From your $2,000 marketing effort, you brought in $18,000 the first year AND $72,000 later on down the road.

Had you thrown away the leads, that additional income would be lost. That’s certainly not something you can afford when you’re trying to double your sales.

 © 2008 By Clate Mask

Posted in: Chapter 4-Fill the Funnel