7 B2C Lead Generation Agency Strategies You Need to Know
Comprehensive Guide to Lead Generation
Finding Ways For A Pay Per Lead To Work
Pay per sale is sometimes addressed as cost per call leads. But in telemarketing, we refer to it as pay-per-lead telemarketing. It is a marketing process that pays the owner or publisher of a Website. It is based on the number of sales generated from an advertisement. Under this agreement, the advertiser only has to pay for sales generated by the site based upon a prior agreed-upon commission rate.
While the intentions of using a pay-for-performance telemarketing model are usually good, there are several reasons why it doesn’t work well for outsourced sales.
The first is regarding the cost of resources. Let’s take cold callers outsourcing, for example. They are a costly resource. They can also require a lot of training before they can become effective. If everyone agrees that cold callers are valuable resources, why would an outsourcer decide to invest in them? There will not always be a guarantee of a return on that investment. From a business perspective, it may not make sense.
Furthermore, the pay-per-sale puts the focus on short-term goals. There is no reason to think past hitting numbers. Thus, a pay-for-performance sales rep is focused on his short-term goals rather than his long-term success.
So how do Magellan Solutions make this work?
Many independent publishers or Website owners include pay-per-sale advertising on their sites. When a user clicks on an advertisement and makes a purchase, the Website owner receives either a flat fee or a percentage of the overall sale.
PPS uses URL tracking to identify the publisher or owner of a site. When an ad is clicked, a unique URL indicates to the advertiser the traffic source.
Advertiser & publisher alignment
Unlike other advertising models, PPS aligns the interests of both advertiser and publisher in seeking to reach larger audiences and sell more products. While traditional advertising pricing is not tied to sales, PPS motivates all parties to participate in marketing.
Setting a budget
Before jumping into PPS, from a business perspective, setting a budget for how much you’re willing to spend daily is essential.
There is no definite figure that companies follow.
While you will pay your lead generator somewhere between $25 and $30/hour depending on their level of skill and experience, you also have to consider the following:
|In-house – $38/HR|
|Sales commission||15% of salary||$7,350|
|*The following are added because you do not pay for sick leave or holiday time with an outsourced resource.|
|Sick leave||Five days per year||$937|
|Holiday pay||Four weeks per year||$3,750|
|Public Holidays||13 per year||$2,438|
|Outsourcing – $10/HR|
|Recruitment||$5,000 per year|
|Telephone calls||$30 per week||$1,560 per year|
|Training, management & supervision||$12,899 (allowing 1 hour/day)|
|Other overheads||$1,040 per year|
Optimization and sign-ups
You can fully understand the level of optimization utilized and needed through Google Adwords, analytics, merchant center accounts for projects and e-commerce testing.
When taking into account various factors such as the amount of product for sale, product type, profit margins, and the median price of products, you can form an educated guess on what may be expected in profit.
This process is the most favorable among advertisers. On the other hand, it’s often the least suitable option among publishers.
What you should do before choosing Magellan Solutions for your pay-per-sale advertising
Pay Per Sale (PPS) marketing is incredibly risky for outsourcing companies like us. But we are investing heavily upfront to get the most significant impact in the shortest period.
Before locking in your partnership with us:
Ensure you remain profitable.
Not every business needs a PPS campaign. It only makes sense if you have a marketing budget. It’ll be harder to justify the PPS spend if you’re selling a low-cost service or product, such as handmade earrings, at prices that barely cover your time and the parts.
Optimize your sales funnel.
The concept of a digital marketing funnel has changed quite a bit as digital marketing has evolved. This marketing strategy is designed to attract people to your business, then guide them to conversion. Having a well-defined funnel can save you considerable resources. Furthermore, it will ensure all your marketing efforts are tailored to the various stages in the customer journey.
Track your results.
The only way to ensure that your PPC budget drives business growth is to track and monitor your results. This means keeping a close eye on key metrics:
- Cost per click
- Cost per conversion
- Click-through rate
- Total costs
- Quality Score
Another Option For PPS Advertising Program
Aside from pay-per-sale-telemarketing, there is another option, such as affiliate marketing. This is a popular tactic for businesses. It drives sales and generates significant online revenue.
A survey shows that 81% of brands and 84% of publishers leverage the power of affiliate marketing. It is a statistic that will continue to increase as affiliate marketing spending rises every year in the United States.
Furthermore, there is a 10.1% increase in affiliate marketing spending in the United States each year. This means that that number has reached $6.8 billion or more.
Then some happened in 2017 and 2018.
In March 2017, Amazon’s affiliate structure changed. They offered rates of 1-10% of product revenue for creators. Thus, affiliates can dramatically increase their passive income based on the vertical they’re selling on.
Then there is affiliate marketing of Jason Stone (Millionaire Mentor). He was responsible for as much as $7 million in retailer sales in June and July of 2017.
Meanwhile 2018, content marketing costs were gauged to be 62% of traditional marketing schemes. This is along with simultaneously generating three times the leads of conventional methods. 16% of all orders made online can be attributed to the impact of affiliate marketing.
Marketing is not cut and dry. It is not predictable. Instead, it is subject to variables that constantly shift. If you need a pay-for-performance sales outsourcing partner, we can help you keep up with these constant shifts.
We can also do trial stages with you as one of the top-performing commission-only telesales companies.
Contact us today for a quotation.
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