Buying B2B leads can be an expensive game.
Doing a quick search of Google for B2B leads shows up pages and pages of results – mainly from data companies selling B2B company prospect information for a fee per contact. Having this information is great for outbound marketing campaigns but with the upcoming GDPR rule changes, buying data like this might have a limited shelf life.
Why would you buy a B2B lead?
- You can be flexible with when you generate more leads – by purchasing prospect data, you’re in control of when you acquire new leads
- Quickly increase your sales conversations – if you’ve bought some good data and ran an effective marketing campaign you should start generating some good meetings and sales conversations relatively quickly
- You can be specific with the type of business you target – you can specify the industry, job role, location and company size of the prospects you want to target when buying leads
What are the negatives of buying B2B leads?
- You’re not actually buying leads – you’re buying contact information. There is a big difference
- It’s expensive – paying per contact record can soon add up when you need hundreds if not thousands of prospects to market to
- The quality isn’t always great – outdated records are common place when buying B2B leads, with people moving companies or retiring it’s to be expected
But perhaps the biggest issue is the fact your B2B leads aren’t marketing or sales qualified.
Why? Because you don’t know if the prospect on your list is in the market for your product or a good fit for your offering.
What is the alternative to buying B2B data and leads?
You could try and take on lead generation yourself – we’ve put together a comprehensive list of 10 lead generation tactics you can start using today…
Shared risk & reward lead generation relationships
Risk and reward is an investment phrase used to describe the “comparison of the expected returns of an investment to the amount of risk undertaken to capture these returns.”
It’s not a commonly used phrase in the marketing agency world (yet) – but more agencies are starting to realise that risk / reward could be a great way to approach client relationships.
How does risk and reward work in marketing?
At LeftMedia, we have been using risk and reward based pricing successfully with clients for over a year now. It’s great.
Of course some clients still prefer a traditional retainer fee pricing structure or one off project cost but some of our clients pay a smaller monthly amount and we earn a reward for every lead generated.
For example with a business insurance client of ours, we charge a monthly retainer fee and a lead reward fee for leads we generate at a much lower cost per lead than they were paying their broker for insurance leads.
What are the benefits of a risk reward relationship with your marketing agency?
- Shared risk – you don’t have to “take a punt” on your marketing activity with your agency. By reducing your initial outlay before seeing results you’re minimising your risk
- Incentivise your agency – some agencies can be complacent when they have a huge retainer coming in each month, by incentivising increased performance you should see an increase in campaign results
- A better working relationship – a relationship based on performance is a healthy one. You’re sharing in the success of your campaigns – laying the foundations for a long term marketing partnership
In the future, I believe there will be an increasing number of marketing agencies moving towards risk and reward pricing – sharing the risk with their clients and motivating agencies to perform above and beyond a project brief.