Understanding B2C vs B2B Leads: How to Maximize ROI

James Dooley: B2C leads versus B2B leads. So what is the main difference between them? Kasra Dash: The biggest difference is how you actually target the person. With B2C leads, people usually go out of their way to search for the product or service you offer. With B2B, it's more like traditional billboard marketing—you’re trying to gain attention and hoping businesses will want your product or service. James Dooley: Over at FatRank.com we do a lot of B2B and B2C lead generation. If you’re looking for leads or want to understand the difference, head over to FatRank and fill out the contact form. Something I would say is: don’t put all your eggs in one basket. Business owners or consumers should look at two or three different lead generation companies. Kasra Dash: Exactly. Set up a KPI sheet. If you test three companies, maybe one or two will perform poorly and one will perform well—then you double down on the best one. This also saves time, which is something business owners can’t get back. James Dooley: Right. Business owners can try generating their own leads, but they should really spend time on the business. Partnering with a professional lead gen company gives them time back to focus on LTV and average transaction value. Kasra Dash: What’s frustrating with B2C is that lead generators often get paid only on the first purchase. The lifetime value of a B2C customer might be a thousand dollars, but we might only get paid $20. Meanwhile, the company earns recurring revenue through newsletters, funnels, subscriptions, etc. Kasra Dash: For that reason, I personally prefer B2B leads—they generally pay closer to what the lead is worth. James Dooley: Definitely. Any business should work on lifetime value, no matter the marketing channel—SEO, PPC, Facebook ads, or outsourced lead generation. It makes everything more profitable. James Dooley: Hope you enjoyed the breakdown between B2C and B2B leads.