Why You Shouldn’t Use a Lead Generation Agency
September 14, 2018
September 14, 2018
A lead generation agency can be an attractive option for a lot of businesses for the simple reason that they save a lot of time and effort, and most business owners wouldn’t even know where to start finding leads themselves. But believe it or not, it’s a lot simpler than you think.
Finding your own leads can save you money and dramatically increase your CPA. For those reasons alone it is worth taking the time to learn how to source your very own business leads.
What is a Lead Generation Agency?
A lead generation agency is essentially just a marketing agency who specialise in sourcing and delivering leads for your business, but they’re usually at a very high cost per lead.
Lead generation agencies will usually use third-party lead generation software like Lead Peep to find businesses in your target industry and city, or cities, and country. They will then send out marketing emails with the goal being to capture interest and deliver you some hot leads amongst the majority of cold leads. The result is a CPA too high to be justified for most businesses.
For example, I just did a quick search for some lead generation agencies and quickly found one who charge $900 for 700 leads which includes just 5 to 8 hot leads. That means $1.28 per cold lead, but then well over $100 per lead for one that might convert to a customer or client.
As a business owner myself, I simply couldn’t justify spending that much on generating new business. I’d rather learn how to do it myself, for a fraction of the cost, and you should too.
What Else Will a Lead Generation Agency Do?
There are many other services and extras offered as part of your lead generation campaign with these agencies, but let’s take a look at each of them and how easy it is to do yourself.
Often thought as of a hard and time consuming task, finding leads relevant to your business isn’t actually all that difficult, especially with the help of our powerful yet affordable lead finding tool Lead Peep. Simply enter a keyword or industry related to your core product, service or other offering and then select a country and city, or multiple cities, and hit search.
Within a matter of seconds you will have hundreds, sometimes even thousands of business leads at your fingertips who could be customers or clients of your business in days, weeks or months.
Campaign Design & Delivery
Designing and sending out cold emails to try to capture interest can be a very daunting prospect. Especially the design aspect, but the majority of email marketing products these days include drag-and-drag design features which make it easy to throw together a sexy email in minutes.
Of course you then need to make sure that you are making this email even sexier and more appealing with compelling email content that will drive responses from recipients.
A lead sheet, delivered by most lead generation agencies once your campaign is complete, is basically a spreadsheet filled with business names and contact information.
A lead generation tool such as Lead Peep provides this functionality as standard, which means that all of the leads you can source in only a matter of minutes can be quickly and easily exported in Excel or via CSV or PDF. Results can also be printed. Very easy to do yourself.
Another thing that a lead generation agency might offer you to make the deal sound sweeter is A/B testing for your emails, but again this is something that most email marketing tools provide.
A/B testing provides you with the ability to test two or more subjects, email designs and email content (sales copy) to find out which one delivers the most responses, or the hottest responses. You can then use the best converting email for your future campaigns to get the best CPA possible.
We will write a guide on this at some point, but it’s very easy to do.
Once you’re running a lead generation campaign you will want to use pixels on your website to track and remarket to those who didn’t follow up with you. This can be very powerful if done correctly, but again you don’t need to rely on a lead generation agency to do this for you.
This is another thing that we will write a guide for later on.
Should You Use a Lead Generation Agency?
With all of that said, I’m sure you have a better idea of whether or not a lead generation agency is the right option for your business, but if not I’d say you probably shouldn’t use one.
Instead, give Lead Peep a try and aim to get the best possible CPA for your business. Learning how to source email addresses and put together emails and sales copy won’t take you very long. The time spent learning those things will be worth it when you’re saving thousands of dollars.
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Founder of Lead Peep with over 12 years of experience within the field of digital marketing, namely SEO, PPC and email. Proud father of two.