What Types of B2B Lead Generation Companies Exist?

B2B lead generation companies are becoming increasingly popular due to their proven track record of success. 

Companies that focus on generating B2B leads have a much higher success rate compared to cases where businesses try to cover their lead gen needs in-house. That’s because to be successful, a B2B lead generation company has to constantly create and deliver qualified leads to businesses in various niches. 

The two main categories of lead generation companies are inbound and outbound.

Inbound marketing is like a treat for dogs – potential customers will eventually find what they need, and then thank you.

On the other hand, outbound sales are much like getting attention from a cat. Maybe they’ll give you a rub or ignore you. Either way, it’s worth your effort. Yet, you must be the first to move.

B2B marketing and sales are all about generating more leads, clients, and revenue. But how to make sure you find success with B2B lead generation companies? Let’s dive right in and find out. 

Inbound vs Outbound Lead Generation – Which One is Better?

Inbound lead generation helps potential customers to get hooked on your business on their own. This can happen if they see your website, blog posts, other content, or social media profile. If your leads like your business, they will most likely perform some kind of action.
For example, they will like your page. 

The best thing about inbound lead generation is that it’s almost entirely hands-off once you find what type of content converts. You can place information about your brand, products, or services on various online platforms. That allows prospects to recognize a need they have and take appropriate action.

There are many B2B lead-generation techniques that allow prospects to come to you. If they feel interested in your content, they will hopefully convert into customers.

The content you publish or the campaigns you run are the main ways leads can come to you. Content marketing, social media, and SEO marketing are the main channels businesses use to attract inbound leads.

While inbound’s purpose is to attract people, outbound marketing is a proactive form of traditional sales. That is where a sales representative initiates contact with a prospect via phone calls, direct mailshots, emails, direct messages, and events to present them with a sales pitch.

To give an example, outbound is especially important for SaaS sales teams looking to grow effectively. Most people wouldn’t know if you are a SaaS company in growth. Your fastest route to new revenue is to get an outbound strategy in place.

Targeted outreach and effective advertising are the keys to generating leads that speak directly to decision-makers. Inbound is more focused on nurturing prospects towards your brand, while outbound is louder and prouder.

Yet, both of them work hard to spread your brand message and help candidates understand why they need your services.

Although they are nearly opposites, some marketing channels are used in harmony between them. PPC, for example, uses outbound targeted ads to show relevant adverts to people searching the appropriate keywords. 

You can compare these methods to generate leads. That will allow you to determine which approach is best for your overall lead generation strategy

Pay per Lead Generation

Pay per lead (PPL) is a type of partnership between an advertiser and a business owner. The advertiser agrees to refer information to the partner company and gets paid a commission.

PPL is usually created after long and complicated evaluations of your ideal buyer persona. Research shows that a signup form that incentivizes potential clients to act (and also includes contact and demographic information) could generate a good lead. That’s great for you because signing up is free and easy for people. 

Do you want to monetize your leads? You need to create a lead nurturing strategy. Research has shown that lead nurturing is a critical component of generating sales. Nurtured leads are more likely to make 47% more purchases than leads who haven’t undergone that process.

Calculating Your Price Per Lead

You don’t need complex tools like a “cost-per-lead” calculator or similar for a simple calculation like this one. All you have to do is take your lead generation costs over some period and divide this by the number of leads you generated during that period. It might sound a little complicated but in reality, it is not. Here is one simple formula you can use:

(CPL) Cost per lead = Total marketing spend / Total leads generated

Let’s give a practical example. Let’s pretend you spent $6000 on lead gen marketing in September, and you were able to generate 120 leads from these exact marketing efforts during the same month. The simple calculation is the following: 

6000$ / 120 leads = $50/lead

That means the (average) CPL is $50.

Lead Generation Companies

Many companies that offer lead generation services are cheap and promise excellent results. But that shouldn’t stop you from wondering about the truth behind their prices.

Did you know that some companies sell burned (not responsive) and outdated lead lists at a low price? These leads aren’t that valuable and that’s why you can buy them for a few bucks each. Most cold-calling companies use those leads and that’s why sales reps have to filter through hundreds of buyers until they find a good lead. 

Although some companies will charge you more, the leads provided by them can be of the same low quality.

Yet, some companies put in the extra effort to find clients that are indeed interested in your products and services. This will help you to turn them into regular clients much easier. So these are the companies you should look out for. 

Next, we will present some of the most typical pricing models used by genuine lead generation companies. Let’s take a closer look:

  • Appointment-based prices – Many companies will charge per appointment. The company will research potential clients, then contact them to find out if they are interested in your products or services. Finally, the firm will give them your contact details so that they can schedule a sales appointment. The average done-for-you appointment rate is USD 210, although prices can vary widely.
  • Monthly fee – The monthly pricing model is very common in all digital marketing areas. That model of fixed fee lead generation can help you plan your finances in advance.
  • Hybrid (Mixed)  Pricing – Some companies take a different approach and offer a mix of the two pricing models mentioned above. There is a fixed monthly cost plus cost per appointment. In this case, the fixed monthly cost is lower than the typical..

Many factors affect the price of your services, from industry to the services you expect. The value of the customer for a lifetime and the cost of acquisition are also significant. If the ratio is greater than 3:1, your leads will be worth every penny.

Which is the Better Option for You?

Whether or not you choose to use the services of a company or do it yourself, you need to keep in mind both the inbound and outbound approaches. They are very similar to two Boy Scouts selling cookies. Outbound lead generation is more traditional like the Boy Scouts who go from one house to another, politely asking if anyone wants to purchase cookies.

Inbound lead generation is like the creative Boy Scout who makes flyers and posters with the hope he will attract customers. He doesn’t approach each customer one-by-one to present his cookies. Instead, he picks a platform (communication medium) to make his pitch.

Although the two Boy Scouts have a different approach, they are equally capable of selling cookies. Now it’s up to you to decide whether you would try it yourself or use the services of a company.

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