Lead generation is a marketing term that refers to the creation or generation of prospective consumer interest or inquiry into products or services of a business. Leads can be generated for a variety of purposes - list building, e-newsletter list acquisition or for winning customers.
There are many tactical methods for generating leads. These methods typically fall under the umbrella of advertising, but may also include non-paid sources such as organic search engine results or referrals from existing customers.
Why Use Lead Generation?
Lead generation is a win-win for both the buyer and seller. A buyer is able to request information from several businesses that offer the product or service that they are looking for and the seller is given the opportunity to pitch their product or service to someone who has given them permission. Conversion rates on leads that you receive often have a higher conversion successrate than cold contacts because the prospect is prequalified, before you ever receive the lead.
Lead generation has become popular with businesses because it enablesa business to:
• Determine pricing on a per lead basis
• Choose the product or service they wish to offer to prospects
• Select the geographical area that the business is interested in
• Control the number of leads a business wishes to receive per month (this assists with budgeting)
• Pay only for the leads that are received