Purpose of Lead Generation

While already considered an integral part of any marketing effort, it is unfortunate to note that many are still clueless as to what lead generation is about and what it can it do.

In essence, the process of stimulating and capturing interest in a particular product or service in order to develop a sales pipeline is called lead generation.

Putting it another way, lead generation is one effective way of making potential customers warm up to your brand and get them to the point where they would eventually buy.

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Why is lead generation important?

When strangers and prospects show an organic interest in your business, they are initiating the relationship with you instead of the other way around.

This setup will make it a lot easier for them to eventually purchase or patronize your products and services somewhere down the line.

Lead generation has become quite popular because of all the benefits it offers.

For starters, lead generation allows businesses to:

  • Determine pricing based on a per lead basis
  • Pick the product or service they want to offer to likely prospects
  • Choose the geographical area businesses are interested in
  • Take control of the number of leads to be generated on a monthly basis
  • Pay only for the received leads

How are leads generated?

The following are the components included in the lead generation process:

Forms

Hosted on landing pages, forms consist of a series of fields used to collect information. The information gathered are often provided in exchange of an offer.

Landing page

The web page created for a distinct purpose is called a landing page. While used for varied reasons, one of the primary purpose of a landing page is to capture leads using forms.

Offer

Content or anything of value that is “offered” on the landing page is aptly called an offer. An offer must have significant value so visitors would be willing to part with their personal information in exchange for access to it.

Call-to-action

A call-to-action can be a message, button, or image that entices site visitors to take action. In terms of lead generation, the action required is to fill out the form found on the landing page.

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Why opt for organic leads as opposed to bought ones?

Understandably, salespeople and marketers alike would want their sales funnels filled—and they want it filled fast.

That being said, the temptation to buy leads can be very hard to resist.

However, while buying leads instead of generating them organically will entail less effort and time, it is still not considered by many as ideal.

Why is that so?

In most cases, purchased leads often don’t have any idea about your brand or what you have to offer. Basically, most of them (if not all), went to another site to sign up for something and didn’t actually want anything from you.

The messages you will then be sending to them are at the very least considered intrusive and unwanted, as opposed to welcome and inviting.

If the prospect has not visited your site or indicated any interest in your products, services, or even industry, chances are any messages you send would be deemed unwelcome (read: spam).

Even if your messages can get through, there is still a high probability it will be marked as spam if they didn’t ask for it in the first place.

While being flagged as spam can appear seemingly harmless, nothing can be farther from the truth.

Given that a significant number of people will classify your messages as spam, you will be added on a “blacklist” shared with e-mail providers.

Suffice it to say, getting off the blacklist would be hard, if not impossible.

With that in mind, it’s easy to see that generating leads the organic way is always the best way to go.