Cost of leads for a service business?

[jammy-git]

Does anybody have experience in this field? Looking to see what comparable cost of leads for a service business are (web design/development to be specific). ideally as a percentage cost of the project once it's been won.

[StevieBee]

We pay a chap £800 for 32 hours of his time each month for which we get a database containing on average 8 leads; only one or two are what we'd consider 'hot'.

We pay another company a similar amount for the same thing but targeting a different market and their strike rate is pretty similar.

Our contracts vary enormously in value so can't really give you an indicative ratio.

HTH

[jammy-git]

Hmmmm. Thanks.

I'm looking to buy another company and the owner wants a commission of future projects...

[RichB]

Used to pay £20/hour plus £100 per meeting for some outbound telemarketing. I also paid 1% of any business that resulted from one of those meetings.

[RM]

StevieBee said:

We pay a chap £800 for 32 hours of his time each month for which we get a database containing on average 8 leads; only one or two are what we'd consider 'hot'.

We pay another company a similar amount for the same thing but targeting a different market and their strike rate is pretty similar.

Our contracts vary enormously in value so can't really give you an indicative ratio.

HTH

Are you happy overall with the returns on these? How did you find this chap?

[StevieBee]

RM said:

StevieBee said:

We pay a chap £800 for 32 hours of his time each month for which we get a database containing on average 8 leads; only one or two are what we'd consider 'hot'.

We pay another company a similar amount for the same thing but targeting a different market and their strike rate is pretty similar.

Our contracts vary enormously in value so can't really give you an indicative ratio.

HTH

Are you happy overall with the returns on these? How did you find this chap?

The chap....his task is more customer insight than out and out leads - though the line is fine. Almost all our work is public sector so most contracts have to go through some degree of tendering but it's always good to get advance notice of forthcoming contract opportunities and build a rapport before this time.

He's the brother of an existing associate who I've known for a while who found himself in need of some work. He's doing OK but to be honest, the jury's out and will be for a couple of months.

The company I mentioned focuses in corporate sales (largely for our sister company). They contacted us and I liked the cut of their jib. I am happy with them. We don't get huge amounts of leads but that's because the carefully sift and only pass on leads if they feel their is a genuine opportunity.

Both are external and the investment is getting to the point where we are close to committing to employing someone full time.