Are you using the right qualifiers in your lead generation efforts? The questions you use to qualify your prospects will not only determine the take rate of your offer, but also the quality of the individual being passed on to the lead buyer and the ability to meet the needs of the prospect. Thus begins the balancing act between quality and quantity.
Lead buyers need to meet customer acquisition costs or they will stop buying leads, while lead generators need to meet effective ECPMs or other metrics to ensure a profitable campaign. One additional qualifying question might be the difference in the lead buyer ordering twice as many leads or stopping the campaign. One fewer qualifying question may be the difference between a profitable or money losing lead generation campaign for the lead generator.
If the lead buyer is unable to sell to people who are currently under contract for a competing product, then a qualifying question should be added to the lead generation process to filter out unqualified prospects. At the same time, the lead buyer shouldn’t be qualifying prospects using qualifying questions that aren’t required by the lead buyer.
Review the qualifying questions required by the lead buyer to make sure their needs are aligned with the lead generation effort. If a lead buyer can only close sales for individuals that own their own home – how is that criteria being determined? Is self-reported information from the consumer sufficient or is the lead seller matching consumer information against a homeowner database that may not align with what is self-reported to the lead generator? Is a self-reported credit score range adequate or is there a need to ask permission to pull a credit report? Make sure both lead sellers and buyers know how qualifying criteria will be judged and that they are using the same criteria.
Generating quality lead generation prospects needs to be a balanced effort to meet the needs of the prospect, the lead generator, and the lead buyer.
What is a call verified lead? A call verified lead is a lead in which the consumer has provided some or all of their information online in response to an offer and then confirmed and/or expanded answers to qualifying questions over the phone during a verification call. The strength of these types of leads can be two-fold. First off, the phone numbers on these leads have been verified not only to connect to a household, but also to the proper name on the lead. You can run all of your online leads against the myriad of data verification companies out there, but none of these are as accurate as picking up the phone and calling to verify the information and the intent of the consumer. Secondly, these leads are essentially double opt-ins. The consumer provided at least their contact information in response to an offer online and then verified that information along with their interest in the same offer over the phone. The number of qualifying questions answered online or over the phone can vary depending on the offer and the price points of the lead.
The call verification process screens out a significant number of leads either due to bad contact information or for lack of interest in the offer – both of which are in the best interest of the lead buyer. This process leads to the lead buyer spending less on leads and spending less paying for follow-up on the leads. Call verified leads can typically add a cost-effective additional lead source to your sales funnel. In addition to providing cost-effective, highly contactable leads, the phone conversation for call verified leads are typically digitally recorded in case any additional questions arise or a lead buyer simply wants to audit the conversations taking place with the consumer.
Price the Job Correctly
It’s a basic principle: Cash flows into your business when you sell a job. Cash flows out when you pay the costs of overhead and expenses necessary to do the job.
If you sell jobs for less than what it costs you to do the job and pay your overhead expenses, you’ll get behind. You won’t have enough cash to flow.
Pricing your jobs correctly is the first step to positive cash flow in business. It’s easy to do if you know the math. Determine your markup, the markup you need based on your overhead expenses and your profit needs. Apply that markup to your estimated job costs, and use it every time. Now you can rest easy knowing that if you make the sales and if you complete the jobs the way you have estimated them, you will always have enough to pay your bills and make a profit on that job.
I’ve championed the cause of 8% net profit for many years. I know from long experience that companies who consistently price their work to obtain an 8% net profit are always able to pay their bills, on time. They can pay their suppliers, subcontractors, employees, taxes and themselves. When the bills are paid on time, they are free to focus their time and effort on building a profitable business instead of worrying how to make payroll next Friday. And when a problem happens on a job, they have a cushion to tap if needed.
During the last three years, I have seen more and more businesses cut their prices to obtain work. That is foolish mischief at its worst. Think about this; where will the money come from to pay your bills after you cut the sales price of a given job?
I recently read a post from a business owner who said he would cut his price up to 10% to get the job. Okay, if he was pricing jobs to make an 8% net profit, he’s now given away all of his profit and 2% more that was needed to pay overhead expenses. He will be taking money out of his own pocket to complete that job.
Oh, you say, I will make it up on the next one. Right. I have yet to meet the business owner who will cut their price to get a job and then increase the sales price on subsequent jobs to make up for the loss on the first job. It’s a great theory, but it doesn’t happen. Why do you think it will be easier to get a higher price on the next job to make up for the low price on this one?
Don’t do it. Recognize that when you cut your price, you are putting your company at risk. Spend time polishing your sales presentation instead of worrying about your sales price, so you won’t have to cut your prices.
Calculate the markup your business needs to apply to all estimates, and use it without fail. Positive cash flow can only happen if there’s enough cash to flow.
It is another sunny, 75-degree day here in San Diego. As I look out my office window, there is not a cloud in the sky. Yes, such is the life in America’s Finest City.
When I moved here 16 years ago from the East Coast, I was departing family, friends, familiar surroundings and the change of seasons.
Some people told me I’d be back to my roots to live again in 6 months or less, figuring I’d miss out on all I knew for three decades. Well, I have been back, but the longest stay was a week for vacation.
As I sat watching the news this week of a 5.8 magnitude earthquake in Virginia reverberating all the way up into Canada, and now Hurricane Irene forecast to potentially be one of the worst storms the East Coast has ever seen, I reassure myself I made the right decision 16 years ago.
While I certainly do have concerns for family and friends back that way, I know that I’m relatively safe here in America’s most populous state; albeit maybe for a road rage incident or two (I don’t take kindly to being cut off).
Tuesday’s earthquake and this weekend’s hurricane also remind me of how things have changed technologically in just my lifetime (I’m not that old!). 
As a college student back in 1985 when Hurricane Gloria rambled her way up the East Coast and hit us with torrential rains and hurricane force winds, we did not have cell phones or Twitter and Facebook to communicate with the outside world. Instead, it was the old push-button phone and relying on television to get updated information on the storm.
I have lived through a hurricane, a number of blizzards, and several floods, only to see how our communication methods have changed.
During Tuesday’s earthquake, workers in Washington, D.C., New York City and other impacted cities were sharing, tweeting and texting their experiences to loved ones and friends. I suspect as Irene visits the East Coast this weekend, thousands upon thousands of Americans in her path will be doing likewise.
Not to date myself, but I was introduced to electric typewriters when I went to high school; there was even a required course that we had to take. As fate would have it, that course would eventually help me in my journalism career reach speeds of 60 mph.
As I sit back this weekend at the beach in sunny Southern California, I will undoubtedly be watching the news unfold online via Twitter, CNN, FOX News, etc. Yes, I’m a fan of the live streams and will be looking for reporters holding on to anything they can as they broadcast live over the Internet from North Carolina up to the Mid-Atlantic States.
In closing, anyone in the path of Irene be safe and don’t do anything foolish like trying to catch some big waves while surfing, picture taking or tweeting.
Photo credits: hurriyetdailynews.com, pichaus.com and bigjournalism.com
If you want to build a company from top to bottom you will need a hammer, screw driver, nails, blue prints, and workers to start – and by this I mean you will need tools. Unfortunately, the business making tools of today’s world are known as investors, and their hammers and screw drivers come in the form of money.
According to a Wells Fargo/Gallup Small Business Index study, small business owners spend an average of $10,000 to start their businesses. If you don’t think you will be the average start up business entrepreneur, Business Know-How offers a great business start up cost calculator to help you figure out just how much your specific new endeavor will cost.
Considering where you are going to get the finances for your idea and subsequent business truly is the first step into a long road of business excitement. In many ways, if you have a good, solid idea, finding investors can be the most confusing part of your starting your business. However if this is the case, there is no need to worry – if you have a good, solid idea, finding investors will not be as stressful as you might assume.
5 Steps to Locking In an Investor
Step One: Patent Your Idea
Investors will be much more likely to give you a meeting if you have a patent for your idea. If you do not have a patent, someone could easily steal your idea, and if this happens investors are aware that the chances they get their money back are slim to none. Getting a patent, however, can be expensive and will take some research, but in the end a patent is the best thing you can do for your future business.
Step Two: Create a Corporation
When working with investors, you will likely be dealing with a large sum of money, and this can be intimidating. It is always a good idea to keep your professional and personal finances separate in case something does go wrong. In that instance, your new recognized corporation will take the fall, not you personally.
Step Three: Create a Solid Presentation
You want to have a good presentation of your idea ready to go for future meetings with potential investors. You should create visual presentations, charts, and any statistics that could be relevant to why your idea is a good one.
Step Four: Find Investors
If you do not need millions of dollars, sometimes family members or small-business loans are your best option. However, if you really have a million dollar idea, you may need to work a bit harder to find people to listen to your million dollar presentation. Try to talk to your banker about a small business loan, any business organizations you belong to, or go online to find investment firms that may be able to set up a meeting.
Step Five: Return the Favor
Investors put a lot of faith into you because they expect to get their money back (and then some). If you can return the favor and offer your investors shares of stock (which you will get when you incorporate your company), your investors will know you are serious and they will feel more confident in making their decision.
Finding investors will certainly take some time, and do not be discouraged if your idea gets turned down a time or two. However, once you have the final tool to help get you starting on the building process, there is no reason your business can’t be the biggest, strongest, and most attractive house on the block.
Photo credit: alohaliving.com
Editor’s Note: This “How To” blog geared towards small business owners will run each Wednesday, the goal being to assist small business owners in their day-to-day operations. As a small business owner, is there a topic you would like to see covered? If so, email: Amanda.DiSilvestro@resourcenation.com.
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