One Deadly Lead Generation Myth Killing Your Business Right Now

One Deadly Lead Generation Myth Killing Your Business Right Now

Many businesses lose dozens, hundreds, and sometimes even thousands of leads every month due to a myth that keeps on killing profits one lead at a time.

The myth stems from the success of pay per click advertising, especially the early days where it was easy to make a fortune with a simple website plastered with Adsense ads.

But the times are changing, quality is becoming more important than ever. Yet, many businesses are focusing on quantity rather than quality when it comes to leads. They lose money, and they wonder why.

So what is that one deadly lead generation myth killing your business right now?

More traffic means more leads

Ah, no. Let's kill the myth once and for all. Just because you generate more traffic does not mean that you will automatically get more leads. You would think that, but you can't bake an apple pie with just apples, no sir. You have a whole slew of ingredients that require mixing and cutting to become that wonderful piece of an apple pie that graces the inside of my stomach with its presence.

Throwing more apples at a pan will give you a pan with more apples, not an apple pie.

Throwing more unqualified traffic at your website will result in wasted time and resources, with no leads to show for. - Click to Tweet

For some reason this myth is not going away. Partly because businesses are focusing on the wrong metrics, vanity metrics, that have nothing to do with their business.

More traffic is good for businesses that rely on advertising and sponsorships, like blogs and other online media websites. But businesses that rely on sale of goods and services should not focus primarily on website traffic.

Sure, you might get 10k visitors per month to your website. But who gives a rats ass if you're converting 100 visitors to leads, and 10 leads to paying customers. Really?

That's 1% website conversion rate (100/10k*100), and 0.1% sales conversion rate (10/10k*100).

Try to sustain a profitable business on 0.1% conversion. That's just plain wrong.

Now imagine, you throw more traffic and hit 30k visitors, and double your leads 200, and miraculously double your sales too 20. We're looking at 0.67% lead conversion, and 0.067%  sales conversion rate. You actually dropped your sales conversion rate, which is really what is important since leads don't pay you, customers pay you.

What if your traffic dropped but quality of your traffic increased? The visitors would be more qualified and ready to buy from you. What would that scenario look like.

5k visitors a month, 750 leads, and 500 sales. Do the math.

15% lead conversion rate. 10% sales conversion. OMG. But the traffic dropped?

It sure did. If you get quality traffic, instead of aiming for quantity, you will increase the quality and quantity of leads, successfully giving your sales team leads that are hanging down the sales cliff, no bulldozing necessary.

It's VERY possible to increase lead quality.

Don't waste money on increasing traffic, instead invest that money into valuable content relevant to YOUR IDEAL CUSTOMERS.

It comes back to the basics.

  1. Know your target market.
  2. Focus on quality, valuable content - blog posts and ebooks/white papers.

When you know your customer, you'll know what content to create. This targeted, quality content is your filter for wasteful visitors and targeted leads. When a visitor follows a link to read your blog post or download an ebook, they pre-qualify themselves without doing much work for you. Don't get me wrong, you'll get waste here and there, but quality leads will outweigh occasional waste.

Here's what you should do. Stop watching Google Analytics, or whatever analytics you use. Instead, begin creating customer profiles with likes and dislikes, what they are looking for, what their hobbies might be, what their jobs are, what their income is, what is the size of their family, do they have secretary, or do they have a dog or cat.

It's like developing a character for a movie or a novel. Create several different characters to play in your business development and sales sitcom. Use those characters to begin crafting content that they need and want, content that helps them understand something, content that helps facilitate buying decision, content that inspires them to become your brand ambassador, content that you're proud to associate with your brand.

Don't try to pass a turd for a chocolate cake, not that many people are that stupid. Make your mother proud and bake a real Dutch  chocolate  cake that customers will keep coming back for more.

Let's see how many will come back for a turd.

You might disagree with me, but that's your choice - I do ask you leave a comment and initiate a dialog below, so we can talk about how you're right and I'm wrong.

7 thoughts on “One Deadly Lead Generation Myth Killing Your Business Right Now”

  1. Avatar for Kameel

    It’s definitely a quality over quantity affair. Content marketing approaches heavily reinforce this – as does the latest Google update. High quality content attracts, high quality ranking, more appropriate visitors and therefore high quality leads.

    1. Avatar for Viktor

      You’re right Kameel, quality trumps quantity. One well written article will be more effective than 10 short keyword stuffed articles.

  2. Avatar for Mark

    I guess I am trying to wrap my head around the article here. I have read 3 of your articles now and for the most part pretty good stuff. Throw out the infatuation with scat humor and pretty good.

    The part I am confused about is how anyone running a website to generate business would not be looking at conversion rates. Analyzing their calls to action and landing pages. Well they might not have a landing page and that is another issue, but lets assume (dangerous I know) that if they don’t they are depending on either ecommerce or banner advertising.

    Either way I just do not see someone saying hey we got 10k unique visitors this week and didn’t sell squat great job everyone let me give you a raise with a visit by your house. By the way since we didn’t sell anything can you have the wife/hubby cook dinner I am broke and have no idea why.

    With that said I am sure there are some out there that have no idea what a conversion rate should be for their business model.

    Thanks for the content.

  3. Avatar for Kameel Vohra

    The unfortunate truth is that far too many people don’t know what metrics to monitor, choose to measure the wrong ones deliberately (hits look good on reports), or have KPIs that aren’t really aligned with the business goals.

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