How To Use Leads To Grow Your New Business.

December 1, 2007 |

OK, you’ve decided to dive into a marketing program with full intentions to work it hard and make more money than you ever have before. But how are you going to do that? The answer is simple, you are going to prospect.

Now it’s time to decide who you are going to prospect. Prospects are everyone you come in contact with. But finding those who are open you will need leads.

Narrowing down leads can be very simple. Leads are your “warm market” and your “cold market. These are both people you know and those you have never met. Some like to label leads into many categories but these two are what I’ll discuss.

People You Know:

Your warm market is made up of those people you know. They could be your closest friends or just some one you see at a local shop. Most companies will tell you the first place to start marketing is with your warm market because there is a trust factor and they are more prone to listen.

For your warm market list all you need to do is write down the names of all those you know, first as friends, and secondly as acquaintances. This list will be easy at first because it will be common names but it will get tougher as you try to think of all the people you come in contact with.

The list could easily be in the hundreds although off the top of your head you may not have realized you knew that many people. Remember, your warm market list is an absolute must and the more complete it is will mean more people you can easily talk to.

Your warm market is the one you hold closest to your heart because it is people you know. You have a new business that has potential to create a terrific income for you and those who come in under you. Your family and friends need to be the very first ones you contact for that reason.

Now For Those Leads You Don’t Know:

Eventually your ‘Warm market” list will wear out and you’ll have to come up with new prospects. Although your warm list is the best place to start, you certainly can not stop there if you plan on growing a significant Home Based Business. The next set of leads I’m going to look at is your “Cold Market” prospects.

Although you may be scared to death of approaching strangers with your business you know it is something you must do to grow your business. The only problem you have is where do you get the names for your list?

If you do a simple Internet search for “leads” you will come up with hundreds of places willing to sell you leads. They will sell you leads for a price any where from 10,000 or more for $19.99 to 20 leads for as much as $300.00. If you’re like me and on a limited budget $300.00 is a lot of money and $19.99 looks more like my cup of tea.

The main consideration is the quality of the leads. Does higher cost mean better quality leads, yes, usually it does, but not always. Does lower cost mean a low quality lead, yes, usually it does, but not always. It all depends on how you plan to use them.

Hundreds Of leads For A Low Cost:

The number one mistake most marketers make with the high volume cheap leads is to send them directly to their main sales page on the web or hit them up with your longest sales pitch. Usually hoping 1 in 100 will respond. Unfortunately it doesn’t work that way most of the time.

I’ve paid for as many as 20,000 leads thinking the $40.00 I spent was a bargain, I was sure I would get 10 - 15 sales. I sent them right to one of my direct sales pages, not even one person even attempted to sign up. When I looked at my web site statistics most of these leads only stayed a few seconds and they were forever gone.

Most of the high volume leads like these are people who through some web site clicked a link that dropped them in on my site totally unaware of where they were headed. Needless to say they did not stay long. They simply were not interested in a Home Based Business.

After learning the hard way these people would not buy from me directly and were not interested in my offer I came up with another plan. Every one likes getting things for free. So I created a short simple web page that could be read in just a few seconds and gave away a freebie of some sort. This freebie related to what I was offering so it created a link. By giving their names and email addresses I was able to build an email list who I could market my business to.

When using low cost high volume leads or aged telephone leads you simply need to come up with something that is quick and easy that will open the door for your next call or email.

High Cost Leads:

The more you pay the more you get is true with these leads. Most often they have been captured through a landing page promoting a specific type of opportunity. These can cost as much as $12.00 a lead. But, these leads are primed and you want to be ready to give them your best sales pitch and to spend some time with them. They are not the best for the inexperienced because of the cost.

When paying top dollar for a lead you can expect and even demand the most information possible. Often times you will get how much they have to invest in a new business, how much time they have to spend working it, and how much they want to make. What you get is specific information you can use to market to the individuals name. So not only are they looking for your opportunity and anticipating your call you know how to approach them to meet their individual need and desire. This gives you the advantage 100 fold and increases the value of these leads tremendously. As their value increases so does their price.

These leads can be put in an email marketing list but that is not what they are generated for. Actually that would be a waste. These names are people who are actively searching for a Home Based business and ready for a phone call. Often they are expecting it with a bit of enthusiasm. Just keep in mind, not all of them are buyers or even ready to buy.

Many just want a little more detail about your offer. Out of 20 names I might sell to 2-3 of them and may not recover the cost of my purchase. While I may not recover the entire cost of these leads immediately I certainly am with residuals, bonuses and team building. Adding people to my team doesn’t hurt my ego a bit either.

Every type of lead you can get has a specific purpose and a specific way they can be effectively used. Family and friends cost only a little bit of time and can be your most valuable resource. Low cost high volume and high cost specific leads are both very valuable and require a time and money investment. If you have a specific plan on how you want to use them they can both be very worth while in building your business.

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