When outsourcing your lead generation campaigns, before you start choosing your service providers, you will have to first decide which lead generation service you want. There are two types of lead generation companies you can choose from: fixed price and pay-for-performance companies. But first, a primer on how both types work.
Fixed price lead generation companies are usually contract-based. If it's a b2b telemarketing company, for a specified number of months, you will have the services of a professional b2b telemarketer generating qualified business sales leads for you. The contract usually indicates how much leads the b2b telemarketer can generate per day, and the amount of leads you should expect is roughly the same amount as that number.
Pay-for-performance lead generation companies on the other hand, runs on a system where the client only pays for the b2b sales leads and appointments sent to him. It doesn’t matter how many calls the telemarketer makes---in fact, it doesn’t matter what lead generation method was used---as long the quota for the number of leads and appointments is reached.
A lot of business owners prefer to hire a fixed rate lead generation company because a lot of pay-for-performance firms don't pay enough attention to the business sales leads or business appointments they send to their clients. While there are a few qualified leads in the business list they send to their clients, most of these are just "fillers" or randomly selected leads just to get paid.
However, this isn't the only problem with this type of lead generation system. In pay-for-performance, the client only receives the information of the leads which he is expected to convert, not the business list of all the companies contacted on his behalf. The client has no idea whatsoever who those people who rejected his products and services are, what methods were used, and why they rejected the offer. This means, if the client should do another lead generation campaign, these same people will likely get included in his business list again. The risk here is if the business lead has already requested not to be called again. If he was contacted again by the same company, he may report that company to telemarketing authorities for not following proper telemarketing practices. Aside from the decliners, the client loses the opportunity to follow-up on business leads who are not yet ready to convert. Because all they pay for are the "qualified" leads, what could have been a large number of potential leads entering their sales funnel is lost.
Another issue with pay-for-performance is that the client has no idea what happened during the initial telemarketing call. The lead generation telemarketer may have touched on a sensitive topic for the business lead which compelled them to agree to the business appointment. But the client, not made aware of this, will have no idea what the business lead expects of him during the meeting. This is perhaps one of the major reasons why, for a lead generation campaign generating 100+ leads, only 2-5 are successfully converted (aside from the issue of the filler leads). Now, I'm not saying that pay-for-performance companies don't brief their clients regarding the business leads they send, but I seriously doubt this is actively practiced.
As you can see here, it is much better to hire a fixed-price b2b lead generation company who includes you in all aspects of the campaign process. You know how many calls were made and to whom, and you can even listen to the cold calls made by your telemarketer. When outsourcing your lead generation process, always choose the company whose methods give you the most benefits.
Fixed price lead generation companies are usually contract-based. If it's a b2b telemarketing company, for a specified number of months, you will have the services of a professional b2b telemarketer generating qualified business sales leads for you. The contract usually indicates how much leads the b2b telemarketer can generate per day, and the amount of leads you should expect is roughly the same amount as that number.
Pay-for-performance lead generation companies on the other hand, runs on a system where the client only pays for the b2b sales leads and appointments sent to him. It doesn’t matter how many calls the telemarketer makes---in fact, it doesn’t matter what lead generation method was used---as long the quota for the number of leads and appointments is reached.
A lot of business owners prefer to hire a fixed rate lead generation company because a lot of pay-for-performance firms don't pay enough attention to the business sales leads or business appointments they send to their clients. While there are a few qualified leads in the business list they send to their clients, most of these are just "fillers" or randomly selected leads just to get paid.
However, this isn't the only problem with this type of lead generation system. In pay-for-performance, the client only receives the information of the leads which he is expected to convert, not the business list of all the companies contacted on his behalf. The client has no idea whatsoever who those people who rejected his products and services are, what methods were used, and why they rejected the offer. This means, if the client should do another lead generation campaign, these same people will likely get included in his business list again. The risk here is if the business lead has already requested not to be called again. If he was contacted again by the same company, he may report that company to telemarketing authorities for not following proper telemarketing practices. Aside from the decliners, the client loses the opportunity to follow-up on business leads who are not yet ready to convert. Because all they pay for are the "qualified" leads, what could have been a large number of potential leads entering their sales funnel is lost.
Another issue with pay-for-performance is that the client has no idea what happened during the initial telemarketing call. The lead generation telemarketer may have touched on a sensitive topic for the business lead which compelled them to agree to the business appointment. But the client, not made aware of this, will have no idea what the business lead expects of him during the meeting. This is perhaps one of the major reasons why, for a lead generation campaign generating 100+ leads, only 2-5 are successfully converted (aside from the issue of the filler leads). Now, I'm not saying that pay-for-performance companies don't brief their clients regarding the business leads they send, but I seriously doubt this is actively practiced.
As you can see here, it is much better to hire a fixed-price b2b lead generation company who includes you in all aspects of the campaign process. You know how many calls were made and to whom, and you can even listen to the cold calls made by your telemarketer. When outsourcing your lead generation process, always choose the company whose methods give you the most benefits.