Assigning a Dollar Figure to Your Leads

By Avelyn Austin | Jul 18, 2008
More Articles by Avelyn

Exactly how much are you willing to pay per click? Now, exactly how much should you be willing to pay per click? Is there a difference, and if so why? If your site has a form set up to generate leads, I’d say that your willingness to make a higher bid should be more!

Think of it this way. As a company how much are you paying your sales people? Technically, your website is partly doing the initial/ hardest part of a sales person’s job by generating leads.

I’m not telling any company to fire their sales people and dump your “saved” money into a paid advertising campaign. What I am saying is that it’s important to put a dollar figure on all leads. Not only will you realize how important a single lead is to the business, you’ll also find out how much you should be willing to spend for each click or possible lead.

Google AdWords introduced a new tool, the Conversion Optimizer, which is Google’s way of helping you get those leads/ conversions keeping your specific lead “worth” in mind. Of course, I prefer leaving the bidding up to someone other than the person who makes money off it… but Google is at least trying to show companies the correlation between the worth of a lead and pay per click advertising.

Of course just because you have a form to generate leads doesn’t mean that good qualified leads will automatically flock to your site and sign up, you have to carefully plan your lead generation strategy. But if you do succeed in getting qualified leads your sales people will have more time to smooze, sell, and resell products which, I’m guessing, is worth a higher pay per click.

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