04.08.2015

Leads or shams: what are you paying for?

Lead generation has gained immense popularity among customers, promoting their sites on the Internet with the help of advertising agencies. However, despite apparent simplicity and effectiveness of this tool, there are some very important things that clients should know about this strategy. Following materials were prepared by Webcom Media specialists to help you avoid the most common mistakes in this area.

The main idea of lead generation is that the customer does not select a particular advertising budget and pays for the leads. That means, that the agency is working on getting traffic to your site and provides a report on the number of leads received, and you pay them at a specified price at a lead. No prepayments and commissions.
 
Paying for the outcome rather than for the prognosis - it's pretty tempting, especially when the client tightening his belt, and wants to invest only in instrument that brings real benefits.
 
Lead generation is very effective. However, it's not so simple. Many clients got their fingers burned on the unprofessional services, because agencies often offer a completely different set of actions disguised as lead generation. So, what the real lead generation is and what nuances one shall keep in mind while choosing a contractor?

 

What is actually a «lead»? It is the user (potential client), who made a beneficial action on your website: left contact information, or, in other words, expressed interest in your product and the willingness to consider the option of purchase (filled the order form, put something in the basket and made a purchase or ordered a callback, for example).
 
The most important things here are the interest and contacts!
 


Many advertising agencies can offer anything under the concept of leads any KPI's such as view of the contacts, staying on the page longer than 3 minutes, even just simply visiting the site. Customers believe it and pay for users who are not actually leads. Be vigilant! Correctly define your leads and pay only for those users whose contacts you have received along with their interest in your products.
 
It doesn't really matter which way the agency draws the traffic to your site, but there is one general rule: during the test period of any campaign the average price per click, and hence for the lead is always much higher. Over time, with the professional and high quality management of advertising campaigns CTR increases, what leads to a drop in the average price per click and per lead. Thus, according price for the lead with your on the basis of the test period, the agency directs you to the invalid data and overstates the real value. Cost leads should be reviewed once or twice per quarter. By the way, this problem shows us pitfall №3.

 

From many agencies you can hear these words. This is not surprising. After having familiarized with the statistics of the campaign, you will notice that the real value of leads reduced from month to month due to optimization of the campaign.
 
Maybe even 90% of all effective traffic will be given by a single source (for example, Google search). If you find it out, you will realize that it would be cheaper to find an agency that making professional advertising campaigns conducting in Yandex or Google. Suspending you from the statistics agency simply robs you of your ability to control and optimize advertising expenditures and hides information about the real price of leads.



In every business there is a «season» and «off-season». If in the latter case sales can be held only through advertising, in the first - you can save some, because you'll have customers anyway. A striking example - the New Year, when people are buying gifts in any case.
 
At such moments, paying for leads is not only ineffective, but also wasteful! Your customers are finding you without any efforts from agencies, some of which even cut off advertising campaigns to save their budget. In other words, you are paying to the agency for contacts that will come to you anyway. Therefore, during the «season» your expenditure on advertising increase, while according to logic they should decrease.



The agency undertakes to do landing page but do not agree the process of its creation with you. Landing is a good tool for lead generation, but also the face of your company. The content and appearance of the landing page can greatly affect the reputation and image in the market. That is why settling for creation of Landing-page agree only on the condition that you will approve its structure, design and content to the smallest nuances.