Posted by Dan McDade
PointClear was recently given a verbal approval for a pilot program by the SVP of Sales for a technology solutions provider. He liked us. Trusted us. Told us we had the deal. Then we got turned over to sales operations and purchasing (supposedly a formality). After a few additional conversations, we were told that a competitor provided a quote for half of what we charge for “the same services.” Half.
I asked my contact how he thought a company could provide the same level of service for half the cost. He said, eventually, that they had to pay their people less. In fact, the competitor pays its staff $11 to $12 per hour – substantially less than we pay (more than half as much). How successful do you think someone being paid $11 to $12 per hour will be in navigating to, and having conversations with, senior decision-makers at organizations that will spend five to six digits or more for solutions? Right.
Searching for an Analogy
Suppose you are going to build a house and one builder quotes $200 per square foot and another builder quotes $100 per square foot. Are you automatically going to select the builder that says they can build for half the cost? Sure they can do it, but it won’t be the same house. Bye-bye Bosch appliances, Kohler fixtures, Pella windows and white oak floors. Hello 8’ popcorn ceilings, cheap insulation and hollow doors.
The point is, not all sales lead generation firms are created equal, just as not all houses are the same.
Instead of highly qualified sales leads, our would-be client will end up with the equivalent of 8’ popcorn ceilings. It should not have ended up this way. The company will be three months or more behind by the time they figure out their mistake – and the year will be lost.
What else, besides labor costs, factor in to the costs of lead generation? Here's a full explanation of cost per lead– a white paper complete with all the math you need to determine how much you should pay for the quality leads you need.
Do you have an example of a scenario described above happening to you – or an analogy that fits? Please reply and share with our readers.
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