Small Business Lead Generation – Pay-Per-Click Advertising

Small business lead generation using pay-per-click ads can be very challenging. In fact, paying for leads can either make you really rich or drive you out of business. Google makes a ton of money every year from pay-per-click ads. Most of the money that they make from these ads did not generate a single bit of additional revenue to the companies or entrepreneurs who purchased them. However, there are a few people out in the business world who pay a little bit of money to Google and generate millions of dollars in return. They don’t generate this type of income by accident. These entrepreneurs just have a better strategy than the ones who end up losing money on pay-per-click ads.

How to Lose Money in Pay-Per-Click Ads

The Uninformed Entrepreneur says, “I am not making money from my website because no one is coming to my website, so I will invest in pay-per-click ads and that will make me money.” No, that will cost you hundreds or thousands of dollars every week with very little, if any, return on your investment. Effective advertising leverages or magnifies the return that you are already getting from your current sales channels. If your website is not generating leads or business for you before you invest in advertising, then you will be magnifying a zero return. 300% of zero is still zero.

Most people use pay-per-click ads as the starting point, and when they do, they will almost always lose money. They are betting their business capital on an untested experiment. It would be like buying a thoroughbred and running down to the racetrack and betting a bunch of money on your horse’s first race. Yes, you would know your horse, but your horse is untested against other horses. However, if your horse wins his first three races, you might want to invest a little in his fourth one.

Your website is the same way. Develop your website to where you are generating leads and sales from those leads. Then, one you have a track record of success, invest in pay-per-click ads. Then you are betting on a sure thing.

How to Generate Lots of Revenue from Pay-Per-Click Advertising

The Informed Entrepreneur says, “I have finally got my business generating new leads from the internet, and now I want to leverage the success that I am currently getting.” Now you can make an informed budget for your pay-per-click advertising.

Here is a highly simplified example. If you are generating 10 leads per week from your website, and you are averaging closing one of those leads for $100 in revenue and $25 in profit, then you could only afford to pay $2.50 per lead to break even. Remember that just because someone clicks your pay-per-click link, does not mean that they will contact you and become a lead. If you have a fantastic website, you might be able to turn one out of every ten clicks into leads, so you could pay no more than $.25 per click to just break even. So pay-per-click won’t yet work for you yet. You would need to increase the revenue per customer, or the profit margin, or the closing ratio (or all three) to make pay-per-click more cost effective for you.

If you invest in an email follow up system and generate the same 10 leads per week, this time you might turn three of those leads into customers. Since you are now able to build a longer term relationship with your leads, you might be able to bundle a few of your products together and generate a higher revenue per sale and increase your average sale to $300. By doing all of this, your cost per lead goes down dramatically. Now for every sale you are generating $100 in profit. With three sales out of ten leads, you generate a total of $300 in profit. You can now afford to pay $30 per lead, so with the same ten clicks turning into one lead, you could afford to pay up to $3 for each click. If you can get quality clicks for just $1 each, you will triple your pay-per-click investment.

So forget the cold calls and spam, use your website to get more leads to call you, and then use pay-per-click to leverage your success, and you will generate great success through small business lead generation.

Writing Pay-Per-Click Ads that Lead to Sales

Once you have a great site and follow up system set up, now you can in some ads. Remember that the goal is NOT to get people to click your ad. The goal is to get people who will buy something from you to click your ad. For instance, if I put “One out of every 100 who click this link will get $1000,” I’d get a LOT of clicks. However, none of them would buy anything from me, so I’d just lose a lot of money. Or, if I am a local dentist in Frisco, Texas, and I place an ad that says, “Free Teeth Whitening Tips,” I’ll also get a lot of clicks, but very few sales. Most of the people who click will just want the free tips, and very few of them will be in my local neighborhood. A better ad would say something like, “Frisco, TX Dentist – Free teeth cleaning with your first whitening treatment.” If you don’t want to go to a dentist in Frisco, TX, you are less likely to click that link. People who do click the link are probably pretty good prospects for you.

You will always have numb-skulls who click your links even though they don’t need or want anything that you are promoting, but you’ll have fewer people click your paid-for links who are looking for something different than what you are offering.

So if you want to generate small business leads using pay-per-click, make your website and follow up system solid first, then use effective ads to target the specific market who will buy your services.

Lead Generation for Small Business Made (REALLY) Easy

Lead generation for small business is the best business-generating tool, method or strategy I know of, bar none. Properly executed it can lead to an increase in sales-conversions of 1,134% – and that’s a real number from the trenches.

So here are 3 reasons…

Lead generation for Small Business

Is so powerful and here’s how YOU can easily put it to work for you in your business.

First, it completely differentiates you from your competitors. Almost without exception, your competitors are focused on sales. Their ads, their websites, their whole attitude is based on the idea they must make the sale. As a consequence their only marketing strategy is to try to sell “off the page”, and so they get (if they’re lucky) a 1% conversion rate and an appalling ROI on their marketing and advertising efforts.

Secondly, it changes the whole dynamic you have with your prospective customers and clients. See, they have the advantage in that they have money in their pockets you want in yours… and you have to get them to give it to you instead of to your competitors. By doing lead generation the right way, small businesses can get that valuable “foot in the door“.

And thirdly, it means you have several bites of the cherry, so to speak, and get the chance to form a relationship with your prospective buyer… meaning you’ll not only sell more but also, generally, be able to sell at a higher price.

So, how do you put it to work for you?

The first thing you need is a way of collecting names and contact details — and these days the easiest and most convenient details to collect are email addresses. The explosion of the Internet’s popularity has been a real windfall for small business marketing, even if most small business owners don’t realise this yet.

Why?

Because the low cost and simplicity of getting local people online to visit their website and exchange their contact details for some small but valuable item of information (e.g. a special report or guide to choosing, say, the best electrician, house painter and decorator, butcher, baker, and candlestick maker) represents a remarkable opportunity. Imagine… how many electricians in YOUR local area are giving away a free report about how to choose an electrician, or plumber or car mechanic without being ripped off?

None, I bet.

So the ones who do it will be perceived very differently from (and better than) their competitors.

The key to this can be summed up as “begin your relationship by giving“, which is the exact opposite of the traditional method of doing business. And once you have their details, you can market to them by email and other means at your leisure, taking the softly-softly approach to things rather than the hard-sell.

Fact is, though, almost no small business has the courage to do this – but those who do… well, they reap the benefits.

And they reap them to the tune of an increase in conversions of 1134% or more — that’s more than TEN TIMES as many sales just by switching from an immediate-sale model of marketing to a lead-generation model.

And that’s got to be worth it, hasn’t it?

Turning Knowledge Into Home Business Results

Just the Facts Please

Running a quick Google search will confirm the existence of a vast array of resources for the home business owner. Books, CD’s, training courses, coaching programs, seminars, and conferences provide information from “How to Start a Home Business” to “Building the Best Home Based Business”, all designed to assist you to achieve business success. These tools have their place. Business building is a challenging proposition and it makes sense to listen and learn from people with a proven track record. However, the most important business resource available is often overlooked in the rush for answers. Here’s a question for you: Does attending 5 seminars instead of 2 increase your chances for business success? How about this one – Does signing up for 3 gym memberships mean that you will achieve peak fitness? Of course the answer to both of these questions is ‘No’. While a gym membership may be a useful tool for accomplishing your fitness goals, the real key to becoming fit is to develop an intelligent fitness routine and then follow it consistently. Similarly, the real key to creating the best home business lies in putting together an effective plan and then taking action to make it happen – it’s really that simple.

Knowledge, Knowledge Everywhere

While the abundance of business related training resources provides access to a wealth of useful information, many entrepreneurs discover this is a two-edged sword. On the one hand, increasing your knowledge of business development strategies and tactics can help you to avoid mistakes and make good decisions right from the start. But, on the other hand, stuffing your mind with gobs of information can create information overload – some would use the phrase “drinking from a firehose” to describe this experience. Information overload can cause an otherwise intelligent and capable person to either become overactive and spread themselves way too thin to be effective, or to simply stop taking any action all – paralysis by analysis.

It’s All In Your Mind

So, how does the motivated home business owner learn how to take advantage of great information resources without getting overwhelmed with data? Let’s return to the subject of fitness for a moment. We have already established that just having gym memberships will not produce a beach body – the ingredients needed to accomplish your fitness goals are an intelligent plan and consistent action based on that plan. We have also identified the key to development of your successful home business lies in putting together an effective business plan and taking appropriate action based on that plan. Well, there is one more critical piece of the puzzle that needs to be in place to bring all of this to life in your business. And that critical ingredient is (drumroll here): your mindset. Yes, The final determinant of business success lies right there between your ears – not in ANY training, information resource, or coaching. While these resources can add value to your business, the workshop of your own mind is where all of that great knowledge is processed and converted into a plan that works for you.

Gimme 3 Steps…

So, let’s put this most important of business assets to work for you Pronto, and here’s how:

First, get a picture in your mind of what your lifestyle will look like when your successful business is in place. Seriously. Get that picture in your mind right now, it will serve as an anchor to keep you on track without being derailed by information overload.

The next step is to identify the top 3 actions you need to take today to move yourself toward that picture. Write these actions down on a piece of paper and keep it with you all day. This exercise will help you to stay grounded on the important tasks you need to take right now to make progress toward your desired future.

The final step is to keep these goals ‘top of mind’ throughout your day. If you find yourself becoming distracted and spending unfocused time on non-essential activities like web surfing, email, TV, movies, or even getting wrapped up in business training that does not contribute directly to completion of one of your 3 daily tasks, immediately recall that picture you created in the first step, review your tasks for the day and TAKE ACTION on whatever you have not yet completed.

Repeat this 3 step process daily and you will be amazed at how quickly your results will multiply!

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