Whether you’re planning your lead generation strat­egy or analyzing campaign results, strike “cost per lead” from your vocabulary. In online marketing, just as in life, you get what you pay for.

Seeking a low cost-per-lead sets you up for the wrong goal. Your real goal should be to win a profit­able customer at the lowest possible cost.

The metric you want to focus on is cost per acquired customer.

But first, make sure you understand the lifetime value of a customer—a key, yet often overlooked, concept. Looking at revenue from a one-time trans­action viewpoint is a flawed assumption and leads to selecting poor-quality leads.

The lifetime value (LTV) of a customer, according to the Database Institute’s website, is “the expected profit that you will realize from sales to a particular customer in the future. Although it builds on past customer history, LTV is all about the future. It is based, primarily, on the customer’s expected retention and spending rate, plus some other factors that are easy to determine.”

Use your customer’s LTV as a gauge for what a truly qualified lead is really worth in your customer acquisition program. Then, for each marketing buy, be willing to pay more for the programs that have effective conversion rates. In the end, you could care less about the cost of a raw lead–you want a profit­able cost per acquired customer!

Clearly define what a lead is and set the price you’re willing to pay for it according to how deep in the conversion funnel it is. A name from Hoovers is not worth nearly as much as a contact that completed a form and requested more information. And that lead is not worth as much as a prospect who has agreed to an in-person demonstration.

Keep in mind that leads from different sources convert at different rates. A higher cost lead may convert at twice the rate of a lower cost lead, making it more valuable.

Setting up a program to generate profitable leads begins with a close look at your business model. What are the telltale qualifiers for your best pros­pects? For example, for financial services, it might be net worth. For pharmaceuticals, it might be age. What are your close ratios? Expect to pay more for better or deeper leads.

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If you have ever marketed a product or service online then you understand that there is some psychology involved.  Not necessarily the psychology of you the marketer, but the psychology of your prospects.  Marketing is a skill that requires you to get inside the head of your prospect and find out exactly what they want.  More specifically, you are trying to provide a solution for your prospect.  The marketers who understand this are the ones who are always selling and closing.  The ones who don’t are left wondering why then can’t seem to make a sale.

Marketing does not have to be hard, but for some reason the majority of people marketing online make it that way.  Marketing is very simple if you focus more on the customer and not always the sale.  The money or commission from the sale will always be there, just as long as you are providing a solution to your prospect.  If you are leading with value and being solution oriented, you will be able to market better than 90% of people online who are doing just the opposite.

In order to help you with this I have included some questions below that you need to ask yourself before you begin marketing and setting up any sales funnels.  From the answers to these questions you will have a better understanding of who your prospect is, what they need and how you can help them.

1.  Who is my target market? – This is the biggest and most important question to ask yourself.  Before you begin selling and pitching your business you need to determine who it is exactly that you want to market to.  You would be surprised how many people miss this and then wonder why they struggle.

2.  What pain is my prospect going through? – Whenever someone wants to buy something it is usually because they want to eliminate a pain.  It may not be a physical pain, but is causing a problem for your prospect.  You want to determine if you can help reduce or eliminate this pain.  For example your prospect might need more leads for their business.  If you can show them how to do this, you eliminate their pain.

3.  What kind of solution can I provide, if any? – You have to ask yourself if your product or service can provide a solution for your prospect.  If you can provide a solution then you will want to present this to your prospect and if it is a good fit, they will buy.

4.  What is my prospect seeking to accomplish? – What are your prospect’s goals and objectives?  Is there a way you can assist them?  By finding out what it is that your prospect wants to accomplish you can tailor your marketing accordingly.

By asking these questions and really getting a feel for what your prospect needs are, you will be able to sell so much more.  This all has to deal with the congruence factor.  In your marketing campaigns and throughout your sales funnel you need to have congruence.  Meaning that from your advertisements, to your landing pages, to your opt-in forms, to your emails, you need everything to be directed towards your target market.

Many times online I will see ads being shown on Google that don’t even match what the user typed in for their search.  They may get a few clicks, but because their campaigns are not congruent and focus on their target market, they lose money, leads and time.  This happens quite often and you would be shocked at how many people marketing online have absolutely no clue.  All you have to do focus on your prospects, their needs and never stray from your target market and you will do just fine.  And remember, put your customers first and the sale second.

Joey Fratantoni Is An Expert Online Marketer. He Has Cracked The Code To Grow Any Network Marketing Business Using The Power Of The Internet. Get Your Hands On The Online Formula Plus Some Free Gifts: Online Attraction Formula
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By Mike Klingler

When building a network marketing business there are a number of things you can focus on. However, I have found that there are 10 key success tips to building a network marketing business.

It doesn’t matter whether your focus is on the warm market, lifestyle marketing, business opportunity leads or internet prospecting. Here are the top 10 success tips to building a network marketing business.

#1 – Commit to Self Development

Self development is an ongoing process. It is critical to your success in network marketing. Therefore you need to make a commitment to consistently find time to invest in self development.

#2 – Leads Generation Strategies

More leads equals more money. It doesn’t matter what your approach is to building your network marketing business. It is all about the numbers. You must develop solid leads generation strategies . One reason most network marketers struggle is because they simply don’t have enough people to talk to about their business opportunity.

#3 – Personal Responsibility for Your Network Marketing Success

Another important success tip to building a network marketing business is to take responsibility for your own business. It’s amazing how many distributors will rely on their sponsor or up line for the growth of their business. If your sponsor or up line isn’t responsive, you can still be successful in this business. If your sponsor or up line has a system that is not working for you, find your own system.

#4 – Develop Your Posture

Posture is everything. You need to have a strong posture if you plan on having success in the network marketing business. People are attracted to someone who comes across as a leader. This doesn’t mean that you have to be making a lot of money. However, it does mean that you need to come across as confident with your prospects.

#5 – Mix Knowledge with Action

It’s great to want to learn as much as you can about your business. However, this should never come at the expense of taking the necessary action to build your business. You can have all the knowledge in the world. However, if you don’t take action, the knowledge that you have accumulated will be useless.

#6 – Don’t Compare Yourself to Others

This is one of the biggest mistakes made by network marketing distributors. They look at what others have done in the industry and make comparisons with themselves.

Just because a distributor in your company made $10,000 in her first month doesn’t mean you will. However, just because there are only a few people who have ever earned $10,000 in the first month doesn’t mean that you cannot.

#7 – Qualify Your Prospects

Spend time with the right prospects. Many networkers spend too much time with the wrong prospects. You need to spend time with the prospects who want a business opportunity and not the prospects who need it. For instance, you don’t want to spend your time with prospects who don’t have the money to invest.

#8 – Remain Flexible

We live in the information age and times are changing. Just because one method of building the business worked in the past, that doesn’t mean that it will continue to work forever. You want to remain flexible and open to new ways to build your network marketing business. If you don’t you might find that, either you personally or your team will be left behind in the process.

#9 – Support Your Team

Treat everyone that joins your organization as if you personally sponsored them. Most people that join the business simply won’t treat their business seriously. Therefore you never want to leave your financial future in someone else’s hands.

When a new distributor joins your organization, make sure you call that recruit and verify that they are being properly plugged into your team’s system. If they are not being plugged in properly, take the time out to plug them in properly on your own.

#10 – Give Your Network Marketing Business Time to Grow

Don’t quit too soon. There is story after story of distributors who have quit the business only to find that their organizations have gone on to build massive businesses that they would have had the opportunity to experience had they not given up. Don’t make the same mistake by quitting too soon.

Assisitng beginners and experienced network marketers to attract prospects to their business
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