How Much to Charge Per Lead?

[Windmill]

Is there a place where you can get inudstry-standard prices for quality leads? I don't want to undersell my leads, or look foolish and ask too much I can't find anything, so I'm going to try and contact a lead-generation company and just see what they are charging.

Is there a % that is sort of standard?

 

[ahiddenman]

Depend's on the leads... if you've got people who want to buy homes or car's then you can charge more.

 

[Windmill]

Well....

It is a combination of a product + service. Usually, a customer spends about $2,500. Of course, I don't know how much of that is profit, given that they don't make the product themselves and they purchase it direct from a wholesaler. In general its a lucrative industry that is in excellent demand.

The leads will be fresh and gotten through SEO. The person will land on my landing page, and the leads will be captured through a contact us form, with telephone/email/address details in their local area and then automatically forwarded to the company. I also plan to set up a phone service and capture the leads via a free phone line.

Looking on google adwords, businesses are paying about $2-3 per click.

I don't know the conversion rates of this as I've never done it before which is what is making this frustrating. We could always agree to a trial.

 

[Salesjobla]

Hi,
Do you have Web Design and Development leads in US?

 

[Windmill]

No

 

[Tenizen]

I will throw my 2 cents in on here to help you out.

Lets say the average PPC is $2... And they have 100 clicks. That's $200 for the company in advertising. And lets just say they have a conversion of 5%, meaning they are paying $200 for 5 clicks--- so ultimately they are forking out $40 per lead. Crazy, right?

they aren't going to pay you this, of course. They might do so with set conditions--- such as Exclusively selling to them, having fresh only leads, delivering via an API system so that the leads are instantaneously generated... Etc...

But if they are willing to fork out $20-$40 per lead, prove that your leads are quality and they will want to work with your pricing.

 

[Reyone]

Dude... Leads are set by the business owners... If you check some independent offers such as "ketone" you will see they pay around $60 per lead; they do this because they will receive massive profit on the long run.
For housing leads and so on it is usually set on a small % of the price, so if the house is 100k, you might get a 3% which would be 3k; then again you would most likely need to close the lead.

 

[krzysiekz]

I will throw my 2 cents in on here to help you out.

Lets say the average PPC is $2... And they have 100 clicks. That's $200 for the company in advertising. And lets just say they have a conversion of 5%, meaning they are paying $200 for 5 clicks--- so ultimately they are forking out $40 per lead. Crazy, right?

they aren't going to pay you this, of course. They might do so with set conditions--- such as Exclusively selling to them, having fresh only leads, delivering via an API system so that the leads are instantaneously generated... Etc...

But if they are willing to fork out $20-$40 per lead, prove that your leads are quality and they will want to work with your pricing.

While I understand and agree with your cost per lead calculation, to say that they won't match their current PPC CPL with him is not true.

If they pay $40 to adwords per lead, why wouldn't they pay him $40 per lead. Same thing, in the end. Actually, it's better to pay OP $40 per lead because adwords is variable in the sense that you might get new guys coming in, driving up the cost per click or other factors which I have not thought of. By working with OP, they get a fixed price per lead - and to them, no other associated hassles of working with PPC.

Also, I have no idea here - speculation - but depending on how the OP has things set up, his leads might be generating more money per lead than the leads they get from PPC. A lot to consider.

A good way to find out how much they're making is work out how much their cost price is (should be quite do-able) and from there you know their approximate profits.

 

[depickel]

Check out the Service Magic website for their advertisers. It show how much they pay and you could get ideas from that for the home improvement/service niches.