How Much Supposed to Pay the Agency to Get the Leads

When we think about improving our business, we talk about the profit margin. The increase in its annual finances judges the success of a company. To increase the profits, one must find leads. Customers being our primary audience, we need to find qualified leads and strategize the marketing scenarios to attract them. Here is where Lead generation services come into the picture.

If turning a business into a global turnover is critical, how much does it cost to get it to that position? Is it necessary to pour millions of dollars into the lead generation industry?

The answer is a simple no. Lead generating is a significant milestone that one must achieve, but surprisingly it costs much less than the traditional methods one uses to boost its business.

Knowing the numbers is the first and foremost thing one must consider. Many factors need to be considered when deciding how much you are supposed to pay the agency to get the leads. Few of them are,

  • What is the selling price of the service or the product?

The amount of money your customer pays to use the services you provide or buy the product you offer comes under this category.

  • For each product, how much is the calculated gross product?

The cost you receive on selling the product or providing a service, minus the amount for the goods sold will give you the gross yield.

  • How much percentage of leads are you converting into sales?

In the hundreds of phone calls you make and the emails you send, exactly how many of them turn into your business revenues come under this category.

So how exactly do you calculate these finances?

How much do you pay? 

First, you need to calculate how much you pay for the sale.

For example, if your business’s average revenue is 50$ per service, and the gross margin is 50%, then 50$ x 50% gives you 25$, i.e. (50$ * 50) / 100.

It would be best if you were willing to pay all 100% of your gross profit so that you can get a new sale. It concentrates on the importance of investing back in the firm.

Every new customer can turn into a long-time audience if they are on the premise and are ready to recommend you to their fellow customers.

Now that you have the total cost for sale, let’s calculate the price you pay for the lead.

If, for example, the lead to rate conversion rate is 20% then,

(Amount paid for sale) * (lead to rate conversion) gives the cost we pay for the lead.

In this case it will be (20$ * 20) / 100. That gives us 4$.

Therefore, our cost per lead will be around four dollars. Make sure you check the metrics as they are critical.

One thing we need to understand is that these charges may vary from firm to firm. There can never be one standard solution for all situations. Make sure to choose your finances and services carefully.

If you are interested in applying different marketing strategies to increase your company’s sales, we here at Stixx will help you out with it. We are one of the best Lead Generation agencies in the UK. Do contact us at info@stixxdigital.com or call us at +1 323 521 4481

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