How to Avoid Wasting 75% of Your Marketing Spend

Posted by James Obermayer on Jul 26, 2016 3:36:35 PM

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Most companies admit to generating only a 10-25% follow-up of their sales inquiries. With so little follow-up, they’re reaching, on average, only 25% of available buyers. This means that 75% of the marketing dollars spent on lead generation are wasted.

Why it’s Important

“If your company is average, you are only following up 10-25% of the leads you give your salespeople which means you are wasting 75% of your lead generation budget!”

Sales Lead Management Association

But what if we have a world where:

  • Sales follows up 100% of the inquiries (all inquiries, not just leads).

  • Marketing measures the sales contribution value of every campaign.

I can tell you what will happen: 

  1. Sales will increase in 90 days.

  2. Sales expenses will drop as average closure rates increase. Salespeople will make quota consistently when sales inquiries are followed up. 

  3. Sales force turnover will be reduced.

  4. Marketing will be stronger and proud of its contributions to the wealth of the company. 

  5. Marketing will no longer be a variable but a fixed expense for lead generation.

  6. Marketing management will become a builder of wealth, not a spender of revenue. 

This is already a reality for many companies.  Maybe they are small in number, and they are secretive, because who wants to empower competitors when the solution to increasing sales is so simple?

To become like them, you need business rules for follow-up and measurement, and a system to report on results.  There is a requirement for enlightened sales managers who have control over their salespeople.  And, you need a marketing manager who doesn’t mind being measured for his or her contributions. 

It really is simpler than you think, but you have to think and act to make it happen.

Then again, Henry Ford said “Thinking is the hardest thing we do, which is why so few people do it.”


About the Author:

James Obermayer is publisher of Funnel Media Group, LLC, which owns the Sales Lead Management Association, and the Funnel Radio Channel for streaming live internet radio programs and podcast replays. Obermayer hosts two weekly internet radio interview programs: SLMA Radio and He can be reached at

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