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Lead Gen Help - How Much Should They Pay Me

Discussion in 'White Hat SEO' started by alrightythan, Jan 6, 2017.

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  1. alrightythan

    alrightythan Junior Member

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    I found a few schools that are offering courses at $9000 a piece or more.

    I like the niche and can definitely help them generate more leads.

    My question is how much should I expect to get paid from giving someone a lead that is worth $9000.

    Like what is the industry standard? If there is any . . .

    I know there are two ways. Commission or just straight pay per lead (Convert or not).
     
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  2. kristjan

    kristjan Registered Member

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    Well it depends what are they offering in their course. If there are 5-star hotel, all meals included, Metallica live etc then it is probably hard to ask much but if there is just one regular Guru talking his guru talk then you could ask even as much as half. But the best route is to contact them directly and ask, how much they are willing to pay for new leads. Nice idea, tho. I like it, thanks for sharing.
     
  3. alrightythan

    alrightythan Junior Member

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    Glad I could help. Yeah there are lots of people doing this - I actually worked for a School (Private college) and they were selling courses for like $12gz. I was their lead gen guy. I'm now looking to start my own biz so just testing out the waters of different lead gen opportunites that are out there. Looking for something ethical though. Not a private nursing degree college lol
     
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  4. kristjan

    kristjan Registered Member

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    Wish You all the best!
     
  5. Dannn

    Dannn Newbie

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    This is interesting, and a lot of money to be made for sure. At my University, an entrepreneur professor of mine was running a $20,000 course, and they were doing very well on Coursera.

    If the admission of a student to the course is $9,000, I would try to find out what the average cost to the School is for each head (faculty, and other expenditures), and how many leads it takes for them to convert. Back to my professor's example, a heavy cost for them was running paid ads, which is effectively an expenditure that you would be knocking out, or replacing for them.

    Finding out that # would give you more ammo in determining a reasonable commission number. Realistically, for the school niche, 5 - 10% would be extremely reasonable, however without knowing those numbers, and how much it would cost you to generate each lead, anything would be arbitrary

    For cost per lead, you can let Google Adwords help. Look at what the market rate is (CPC) * 100 clicks. Then I would divide it by 5 - 10% (of how many will actually call).

    This can help you get an idea of fair market value. If CPC for these type of courses is $8, I would charge about $100 a lead (8 * 100 / 8)

    I love the commission model because of how lucrative it can be, but it's burned me plenty of times. From relying on the shoddy salesmanship of contractors, them not answering all of the phone calls ... to them not accurately reporting all sales (intentionally, or not), it can be a real headache. You're also operating in an entirely different vertical, so it might have completely different results than operating on a revenue-share model in a blue-collar niche. If you have rapport and trust with the client, that goes a looong way.

    So, do you use organic, or paid media to generate leads?
     
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  6. davids355

    davids355 Jr. VIP Jr. VIP

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    Depends how much of that is profit I guess, also how much each lead is worth (are they likely to return again) and how well qualified the leads are.

    I know someone that buys leads for similarvalue products. I think they pay around £25 / cold lead and £50 for well qualified leads.
     
  7. alrightythan

    alrightythan Junior Member

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    Thx for the info @Dannn and @davids355 - I'm all organic / search traffic (That's it). Currently laying out my plan on paper before thoroughly executing it. Will definitely keep you guys posted. Yeah I think I'll be happy to get a $100 per lead "Qualified or Not". My goal, once the site is ready, is to truly build a relationship with the school and go from there. Like a proper partnership. Dann THANK U for that formula (8 * 100 / 8). That's crazy :)