Lead generation - no sale no fee or profit share. Is there such a thing?
- Thread starter Robert Groom
- Start date
That desire to get things for free / wanting other people to take the risk is quite common in business.
And it's often the cause of much disaster and loss.
In my industry, that's quite common. When business owners want to sell their business they're best off paying for proper advice and assistance. But, being big fans of free, many small businesses end up signing on with the no-sale-no-fee brokers.
The way they look at it is that they're taking no risk and they have to pay only if the broker finds them a buyer. It sounds like a good deal to them.
And conmen know that. They know that owners of small businesses are suckers for free. So many of them have set up no-sale-no-fee brokerages. In fact, most of the no fee (or low fee) brokerages are at least a bit on the dodgy side! And business owners signing up with them end up getting screwed in a million different ways (as covered extensively by the Mirror newspaper and others - example, and here's my own collection of these horror stories)
As the saying goes, there's sometimes nothing more expensive than free.
And it's often the cause of much disaster and loss.
In my industry, that's quite common. When business owners want to sell their business they're best off paying for proper advice and assistance. But, being big fans of free, many small businesses end up signing on with the no-sale-no-fee brokers.
The way they look at it is that they're taking no risk and they have to pay only if the broker finds them a buyer. It sounds like a good deal to them.
And conmen know that. They know that owners of small businesses are suckers for free. So many of them have set up no-sale-no-fee brokerages. In fact, most of the no fee (or low fee) brokerages are at least a bit on the dodgy side! And business owners signing up with them end up getting screwed in a million different ways (as covered extensively by the Mirror newspaper and others - example, and here's my own collection of these horror stories)
As the saying goes, there's sometimes nothing more expensive than free.
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T
The Ecom Guy
Sadly, the closest thing you are likely to come across is a profit share. (depending on business).
The only way i can see b2b company agreeing to the aforementioned was if they had a massive list of potential leads and they just sent them over to you (as well as others) with the mentality of throw mud to wall and see what sticks ethos.
My advice - assign 30 minutes a day to generate your own leads. You will be amazed at what one can achieve in that time when dedicated
The only way i can see b2b company agreeing to the aforementioned was if they had a massive list of potential leads and they just sent them over to you (as well as others) with the mentality of throw mud to wall and see what sticks ethos.
My advice - assign 30 minutes a day to generate your own leads. You will be amazed at what one can achieve in that time when dedicated
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Certainly there are people out there who do this, but if you want someone good then be prepared to open up your records and books.
As mentioned earlier, the lead generator has its earnings limited by the ability of the closer.
If you are not paying for the leads you will not have the same level of respect you'd have if you WERE paying for them. You might like to think you will but you simply won't.
Profit share could be good providing you were to pass back all the unsold leads for the lead generator to follow up on. Personally, I'd be contacting all the leads supplied by us, anyhow as 'customer service' to find out how you were treating MY leads.
The key there, of course, is that they wouldn't be YOUR leads they'd be MY leads to do with as I decide, and if I find out that you are not processing them well enough, not closing enough, then I'd be looking for a different partnership to provide leads to.
Do you see now how you are exposing your business by trying to save a few quid by getting others to take the risk?
As mentioned earlier, the lead generator has its earnings limited by the ability of the closer.
If you are not paying for the leads you will not have the same level of respect you'd have if you WERE paying for them. You might like to think you will but you simply won't.
Profit share could be good providing you were to pass back all the unsold leads for the lead generator to follow up on. Personally, I'd be contacting all the leads supplied by us, anyhow as 'customer service' to find out how you were treating MY leads.
The key there, of course, is that they wouldn't be YOUR leads they'd be MY leads to do with as I decide, and if I find out that you are not processing them well enough, not closing enough, then I'd be looking for a different partnership to provide leads to.
Do you see now how you are exposing your business by trying to save a few quid by getting others to take the risk?
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Not really.
An affiliate programme is a completely different kettle of fish. Affiliates generally get paid per click or per lead, not based on the actual sale.
Where it's based on a sale it's extremely difficult to get an affiliate programme off the ground for precisely the same reason - affiliates don't want to take a chance on your ability to convert (or lack thereof). You need to be a big name, like Amazon, to attract affiliates on those terms.
An affiliate programme is a completely different kettle of fish. Affiliates generally get paid per click or per lead, not based on the actual sale.
Where it's based on a sale it's extremely difficult to get an affiliate programme off the ground for precisely the same reason - affiliates don't want to take a chance on your ability to convert (or lack thereof). You need to be a big name, like Amazon, to attract affiliates on those terms.
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