Does “Pay-for-Performance” Lead Generation Really Work?
Pay-for-performance lead generation, on the surface, is an appealing notion. The idea of selecting an outsourced agency to do your telemarketing for you—and only pay them for the appointments they actually provide. They assume all the risk, right? How can you beat that? But, in the real-world, business-to-business appointment setting is a very risky model.
No B2B lead generation program (no matter how well planned) produces overnight returns. There’s always a period of planning, testing, execution and measurement. With that reality, it takes some upfront training and management to get results. And with telemarketing personnel turnover so high and training so expensive, does this model really make sense? Particularly if the pay-for-performance telemarketing agent does not get immediate results, they are motivated to push unqualified appointments into the funnel to reach their quota commitment. This is why telemarketing leaves most B2B marketing and sales departments empty-handed and eventually causes a jaded feeling about pay-for-performance lead generation overall. The fact is that the model isn’t broken. But, it has changed and the market needs to change with it for a better result to occur.
Some things to think about before you pay-for-performance
Here, at True Influence, we’ve launched a new program called LeadPAC’s that deals with pay-for performance very nicely. To make this work we’ve partnered with the best-of-class data provider Jigsaw to create an almost limitless flow of sales-ready leads for our customers. For companies that sell to SMB and have a recurring need for higher quality lead flow, this is a great solution.