Lead Generation ≠ Customers

I had a conversation with one of my clients just this week. She asked me, "Can you guarantee me a $20,000 return if I spend $5,000 on ads?"

If there was such a guarantee, everyone spending money on ads would be billionaires. But that's not how it works.

This isn't a simple yes or no answer, but it's a common and mistaken mindset when it comes to paid ads: "As long as I spend money on ads, I should see a return on investment." This kind of thinking can be risky when running ads. That's why today, we're going to explore what a lead really is, how you can actually profit from ads, and the important things to consider before diving into paid advertising.

Today in 7 minutes or less, we’ll cover:

📌 What is truly a lead?

📌 How to turn a lead into a customer (and make your ads profitable)

📌 Things that you need to consider before running paid ads

What is truly a lead?

Not all leads are created equal. A lead is anyone who shows interest in your product or service. However, their level of interest can vary significantly.

For instance, imagine you offer a lead magnet titled "10 Things to Consider Before Hiring a Photographer for Your Wedding Photoshoot." Different people downloading this guide will have different levels of interest and readiness to hire a photographer.

Some might be in the very early stages of planning their wedding, simply gathering information and exploring options without any immediate plans to book a photographer. They're interested in understanding the process and preparing for the future, but they're not ready to make a decision yet.

On the other hand, another person downloading the same guide might have a wedding date set and be actively looking to hire a photographer within the next month. They're comparing photographers, checking availability, and ready to make a booking decision soon.

Both of these individuals are leads because they have shown interest in your wedding photography services. However, their level of interest and readiness to commit are quite different.

This distinction is crucial to understand. Many people assume that once they capture a lead's contact information through a download or inquiry, that lead will automatically become a customer. But that's not always the case. Not all leads are ready to make a decision, and their journey from being a lead to becoming a customer can vary widely.

By recognizing these different levels of interest, you can better tailor your follow-up strategies. For example, you might offer more detailed information and testimonials to the person who is ready to book soon, while providing educational content and inspiration to the person still in the early planning stages. This approach helps nurture each lead according to their specific needs and timeline, increasing the likelihood of converting them into paying customers.

The question is… How do you filter through the different level of interest?

How to turn a lead into a customer (and make your ads profitable)

For a lead to turn into a customer, 3 things need to happen.

1. They have the intent and desire to buy.

2. They have the ability to purchase.

3. They decide to purchase from you.

When generating leads, especially through paid ads, the first step is identifying those who show interest with an offer that resonates with them. This is done by using the right messaging.

For example, offering a lead magnet like "10 Things to Consider Before Hiring a Photographer for Your Wedding Photoshoot" helps to attract those planning a wedding. This type of content appeals to individuals who are in the research phase and seeking valuable information to make informed decisions.

Alternatively, a discount-based offer such as "Get 20% Off by Hiring Your Wedding Photographer Today. Start by booking your discovery call to help design your dream wedding photoshoot" can appeal to those ready to make a purchase soon. This approach targets leads who are closer to making a decision and are motivated by immediate value and savings.

While both offers target engaged couples, the discount-based offer tends to attract leads with a perceived higher intent and desire to buy, as it emphasizes urgency and immediate value. On the other hand, the informational guide primarily filters your target audience, bringing in those at various stages of the decision-making process.

So as you can see, different offer type generate leads with varying level of interest. So how do you know how to identify the leads that have the actual intent, desire and ability to purchase and actually convert them?

Most people’s response to this challenge is to focus on “hope marketing,” where they expect that simply spending money on ads will yield a return on investment.

However, the key to actually converting leads into customers lies in having a consistent and detailed sales process.

Many fail at this step because they treat each lead differently, without a structured approach. They might contact Bob once, Jim twice, and Sally three times, or only follow up when they feel like it. This inconsistency can lead to missed opportunities and lost sales.

To avoid these pitfalls, it's crucial to implement a consistent and detailed sales process. This process should include clear steps for engaging with leads, assessing their level of interest and readiness to buy, and guiding them through the decision-making journey. Here’s how you can refine your approach:

1. Initial Contact and Follow-Up: Have a plan for reaching out to leads quickly, whether it's through automated emails, follow-up calls, or personalized messages. This shows you're professional and eager to help.
   

2. Qualifying Leads: Ask the right questions to find out if a lead is serious about buying. Ask about their timeline, budget, and what they need. This helps you focus on leads who are ready to buy.
   

3. Tailored Communication: Customize your messages based on the lead's interest level. For those just starting to look, offer helpful information. For those closer to buying, address any concerns and highlight why they should choose you.
   

4. Consistent Follow-Up: Stay in touch regularly. Use emails, calls, or other ways to keep your brand in their minds. Remember, many sales happen after multiple follow-ups. This help to address the point of someone deciding to purchase from you when you stay top of mind
   

5. Closing the Sale: When a lead is ready to buy, act quickly. Make the purchasing process easy and clear to avoid any delays.

By following a consistent and detailed sales process, you can more effectively identify leads with genuine intent, desire, and ability to purchase. This structured approach ensures that no potential customer is overlooked.

Having a clear process helps maximize the profitability of your ads. It's not just about the initial contact or spending money on paid ads. The key is building a relationship through a well-planned sales process.

This process provides leads with the most value. By offering helpful information and consistent follow-up, you encourage them to choose you when they are ready to buy!

 Things that you need to consider before running paid ads

So how do you know if you're ready to run paid ads as a form of lead generation?

Here are some key questions to consider before deciding to spend money on advertising:

1. What is your marketing strategy?
   Your marketing strategy should be tailored to effectively reach and engage your target audience, understanding that different tactics attract people with varying levels of interest.
   

2. What is your offer?
   Is it clearly defined and appealing to your target audience?
   

3. Is your offer a great offer?
   Does it provide real value and stand out from the competition?
   

4. Do you have a clearly laid-out sales process?
   Is there a structured plan for guiding leads through the sales funnel?
   

5. Do you have a plan to track every conversion stage in your sales process?
   For example, tracking from lead to appointment booked, and appointment booked to sale.
   

6. What is your clear allocated budget?

   Understand that there will be a testing period, and it's important to have the right expectations during this phase, as you might not yield immediate returns.

    

If you want a full video walkthrough of how you can build a full predictable growth system to acquire customers and not just leads, we have a free course in our community.

Conclusion

Lead Generation ≠ Customers

While lead generation is a crucial part of growing your business, it's important to remember that not all leads will automatically convert into customers. Understanding the varying levels of interest among leads and implementing a consistent and detailed sales process can significantly improve your chances of turning leads into loyal customers.

By focusing on these key elements, you can create a more effective and profitable marketing strategy. For further insights, consider joining our community for a comprehensive course on building your perfect growth system that goes beyond just acquiring leads, to fostering lasting customer relationships.