Gm, I am speaking to a client regarding lead gener...
# ask-a-growth-question
Gm, I am speaking to a client regarding lead generation. I am a first time business owner and because of that I have made some mistakes. I believe I sold myself short. I told my client I will charge $100 per lead. He is in the IT industry and average sale is $100,000 +. And average leads per month is 5 - 10. Does anybody know how I could calculate the CPL? What payment structure should I and the client implement so we both can benefit from this? I did google this question and google said that IT industry average is $200 per lead. But I take this with a grain of salt. Would be glad to hear the communities POV.
Sell him the leads for $100 for 2-3 months, make him very happy with your work. Then reach out and cancel your contact with the message that you have found a new client that pays you significantly more.
He should be willing to re-negotate your fee if your leads are great
For deals that size, you can charge upwards of 5% for each successful lead
When you're working with someone you should have a basic understanding of their business model (offer, deal size, margin, etc). You also need to understand their sales process (cycle length, method, close rate, etc). Ideally you can do this during onboarding a client. How much a lead is "worth" essentially comes down to profit and close rate. With all that being said - it also pays to have some industry knowledge in your clients domain - At least to the extent that you have clarity on how qualified your leads are.
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Thank you for the advice @Chris Benjaminsen . I would rather charge on a per lead basis. I would have to keep talking and see what he is willing to do.
find out his close rate
how many leads are needed to close a deal
then calculate how much value each one of your leads is generating - this gives you the cost per acquisition
if your leads are really working, then you can justify 5%-10% of the cost per closed deal