What is Lead Generation?

What is Lead Generation?

For pretty much every business, one of the main aims is acquiring quality leads. And for leads, the cliché of quality over quantity definitely holds true – a lot of bad leads probably won’t gain you many sales, whereas a few quality leads will.

A good lead is a person or organisation that is genuinely interested in your product or service and is looking to make a purchase. And with so many marketing tools at our disposal these days, you may think it would be easy to generate good leads. But it’s not always that simple differentiating the quality leads from the bad.

Definition of Lead Generation

When it comes to lead generation, it’s important to first define a lead. While some companies make the mistake of believing that anyone can be a lead, as people have different preferences and requirements, a lead is actually someone interested in investing in your product or service.

There’s no point marketing to everyone on your books if half of them are not the target market – just focus on those you know will be interested in a particular product. For example, if you’re trying to promote a new range of mobility scooters, chances are a younger audience won’t be interested in your product. Quality leads will almost certainly be people over a certain age, already looking to invest in a mobility scooter.

Lead generation can therefore be defined as the process of attracting potential customers and converting them into someone looking to buy your products or services. There are a variety of ways you can generate leads, including:

  • Email and SMS marketing
  • Blogging and vlogging
  • Social media marketing
  • Networking online and at live events
  • Website landing pages

Different strategies tend to work better for different industries and products, so it’s a good idea to experiment to see which options get the best results for you.

team of managers discussion in it business office

Pay Per Lead

A common term when it comes to lead generation is ‘pay per lead’. The name is fairly self explanatory – an affiliate gets paid a commission for each qualifying lead they provide. But what constitutes a lead can differ depending on the organisation you’re working with.

For some companies, a lead can be as little as the email address of a potential customer. For others, a lead could involve someone completing a multi-page form, providing numerous personal details and preferences. Generally the lead doesn’t mean a sale – it’s more about the potential for a sale, or the opportunity to market to someone of the right demographic.

Affiliate Marketing Online

Lead generation is often performed by affiliate marketers, alongside the organisation selling the product. An affiliate marketer is someone who typically has a large audience, often on social media platforms, and who is happy to promote a third party product in return for a commission.

Affiliate marketing is a mutually beneficial relationship between the marketer and the business. As stated, the affiliate receives a commission for promoting something, while the business sees an increase in sales and brand awareness.

If you’re interested in increasing your lead generation, affiliate marketing online is probably one of the best ways to go about this. Although creating an affiliate network can take some time and effort, it always pays off in the long run.