Lead Generation:

All those actions a marketer or business undertakes to acquire the name, email address and in some cases even more personal data of persons who have expressed an interest in the marketer’s product . The purpose is to generate an as large as possible database of targeted potential customers who can then be addressed with promotional emails, phone calls or other forms of advertising.

The most frequently applied method of generating leads is by setting up a squeeze page or lead capture page (same thing) with an irresistible gift for the visitor as exchange for submitting his personal data. Then driving traffic to this page through PPC (Pay Per Click) CPA advertising  (Cost Per Action) or other methods of driving traffic to a web page. Depending on the conversion rate of the squeeze page a certain percentage of the page visitors will submit their data and give their permission to send them marketing messages. The marketer adds them to his already existing list  of Leads/subscribers and mails offers to them in the hope of making a sale.

There is yet another, slightly different way for an Internet marketer to make money from Lead Generation. This is by choosing a profitable niche , setting up a lead capture page with a free gift of high value and making it clear in the Terms of Services that visitors opting-in will be contacted by an associate with the best offer for the visitor’s needs. The Leads generated this way are then sold to a company which is operating in this niche but is not very good in generating leads itself. The marketer should have found such a company and built a business relation to it with an agreement that they will buy his Leads to a certain price before he sets up his Lead Generation system. Depending on the niche lead prices between $30 and 50 or even 100 are quite common. So if a marketer has a good and not too expensive method of driving lots of traffic to his squeeze page and the page converts well this can be a very profitable business model.

[Lead, noun use of the verb to lead, comes from Old English lædan = to cause to go with one;

Generation is from Latin generare = to produce, to beget]

 

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