James Dooley:
So today we're going to be talking about pay-per-lead. First of all, what is it? Pay-per-lead is a lead generation model, also known as PPL, where businesses pay per lead. They set a fee and pay per inquiry that the lead generation company generates. So, for example, if I'm a landscaper, I might partner with a cost-per-lead model and pay around £10 or £20 for an individual lead.
Kasra Dash:
Yes, that’s correct.
James Dooley:
Right, okay. What are some pros and cons to this type of model for a business owner?
Kasra Dash:
If you can arrange the cost per lead at a low rate and you're good at converting those leads, you can make a lot of profit. You’ve got to track your KPIs and work out how much profit you’re making once you convert the job. You should work out your percentages from a cold web lead to a conversion. For example, if you're willing to spend £300 cost per acquisition and you convert at 10%, then you'd be willing to spend up to £30 per lead. If you can partner with a PPL lead generation company and get leads for under £30, you're onto a winner. Once you know your KPIs and what PPL companies are charging, you know whether those rates work for you.
The downside is that sometimes you'll buy leads from certain companies and the quality isn’t there. You must ensure that if you don’t answer the call, or if the inquiry is fake—like someone using the name Donald Duck or Mickey Mouse—you’re not being charged. You need it in your agreement that fraudulent or dummy leads are refundable. That's very important for companies using the PPL model.
James Dooley:
Right, okay. How would somebody find a company that offers a cost-per-lead model?
Kasra Dash:
There are plenty of companies offering PPL. Over at FatRank.com, they offer a pay-per-lead service and a pay-on-performance lead generation service, if accepted. Head over to FatRank.com, fill in the form on the contact page, and see whether you're eligible for the pay-on-performance model. If not, we also have a pay-per-lead model available.
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