Is Generating Qualified Leads Without Cold Calling Getting Harder and Expensive?

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Answered by: Farhad, An Expert in the Lead Generation Category
Whether you're a start up or an established business, success ultimately depends on your ability to generate a constant flow of qualified leads.The mistake many business owners make is in using a tactical approach to lead generation, trying one approach for a short while before jumping to another. Worse they continue to waste money on cold calling or advertising in newspapers despite a poor return on their marketing dollar.

Understanding the Psychology behind Generating Qualified Leads

Frustrated business owners fail to realize that their target market may not be ready to enter into a buying relationship straightaway. For instance despite a sensational discount offered for their solar panels, a manufacturer may wonder why the advertising does not result in a flood of sales. There are two important reasons for this.

First, around 97% of their prospects may not have an immediate need for installing solar panels. They may be considering it sometime in the future. The remaining 3% who are in a position to buy are most likely exposed to several other competitive offers, and could choose another manufacturer's product. Of course price isn't always the only consideration in a buying decision and the discount would have little impact on sales.

Why Lead Generation Strategies Outperform Direct Sales

To draw an analogy, imagine a scenario where a man invites a lady for a date the first time. However intense the mutual attraction between the two, it would be foolhardy for the man to propose on the first date. A glance through most of the advertisements in a newspaper or magazine will reveal this is exactly what business owners do. A typical ad promotes product features or offer discounts, has a logo at the top and the store location or website address at the bottom.

A lead generation advertisement on the other hand, whether in print or on the internet offers the prospect valuable information in the form of a free report in exchange for the prospects name and contact details. There is no attempt to sell the product or service. Generating qualified leads is the only purpose of the advertisement. This takes the pressure off the prospect to make a buying decision.

The content of the free information provided serves three purposes. The first is to educate the prospect about the product or service. Secondly, the content positions the product owner or service provider as the expert. Thirdly it provides an opportunity to make a genuinely attractive offer with scarcity and urgency built in... increasing the likelihood of a sale.

Generating qualified leads in this way helps the product owner or service provider initiate a dialog with the prospect, and provide more value in the form of additional information, interspersed by periodic offers.A reasonable amount of trust is already established, significantly increasing the odds off a sale in favor of the business owner.

While this isn't a new strategy, few business owners use it to generate qualified leads. These are simple advertisements that require little creative input and cut through the clutter without being large so they don't attract high advertising tariffs. On the other hand business owners who use this strategy have not only enjoyed a rise in sales, but have also built a database, considered a valuable asset if ever the business is sold.

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