The Era of Cheap Leads

Spending money for leads that don’t become customers is a really expensive form of marketing. You are competing for leads and having to bid real dollars, that are in most cases directly off your bottom line, in order to try and convert a lead into a real customer. ...

I grew up in the eighties with that famous song, “There’s something strange in your neighborhood. Who you gonna call?”  You know the answer.  

But unfortunately, when it comes to marketing we got away from the song. We left it for a digital advertising era we call the Era of Cheap Leads. When it worked it was easy, but unfortunately we are not living in that time anymore. 

The term “Cost per lead” is popular these days, but the weird thing is that a lead is just a lead. Spending money for leads that don’t become customers is a really expensive form of marketing. You are competing for leads and having to bid real dollars in order to try and convert a lead into a real customer. The money comes right off your bottom line.

The thing with “leads” is that they are a strangely attractive place to spend your hard earned cash. The allure is of course that supposedly you are advertising to people who are looking for your kind of service. However, you don’t have any control whether the person on the other end of that click is a teenager doing a science fair research project with no intentions of buying, a person that isn’t in your service area, or someone who doesn’t fit any of your demographic. Those factors are mostly irrelevant to the algorithms serving up your precious opportunities to be seen by the searchers. 

When the economy is booming there may be more opportunities to acquire a customer, but you are still in competition with everyone else who has the same set of tools that you have. Those tools are an amount of money you want to put in the jukebox and a secret list of keywords. You are in constant competition for leads which of course drives up the cost. Regardless of market conditions, the real people on the other end of those clicks that are actual buyers for your service are a fraction of the ones who click and spend your advertising dollars. 

This all sounds great right? Isn’t this just how marketing is done in the age of the Internet? I mean it feels like the alternative is to try and become an influencer, and nobody running a service business has time for that. Can’t we just go back to the Yellow Pages? 

The new question we should be asking ourselves is this: “Am I running my PPC jobs profitably?” Admittedly this question is a bit tricky to answer, but we have a tool to help you try and get a good answer. It’s only as good as the information you put into it, but it might help you. 

It was more fun back when this seemed more affordable and you could grow your business by putting money into Paid Lead sources.  But the truth is, that era is like an old Taylor Swift album before she bought her songs back. It’s gone.  At least for now.

We need to go back to Ghostbusters. It’s the tried and true method of growing your business with a more robust marketing plan that is wider and more long lasting than just pure instant advertising. Let’s go back to Ghostbusters, but let’s do it in a digital marketing sort of way.  

We are in a new era, where the winners are going to be the ones who have their own brand and can stand up on the foundation of the people in their territory knowing who they are even before they have ever called you. 

If that sounds interesting to you, book a discovery meeting with HyperLCL and let’s see if our solution is right for you and your business.