How Tech Companies Overpay for Lead Generation


The first thing to invest in is focus

It’s not helpful if you hire an employee or a full team and then isolate them in your company. Confined to the cubicles on the fringes of your company that you want to visit but rarely ever do, your new lead generation employees will never get the results you’re looking for. Second, it’s important to invest in quality. You need representatives that are a cut above your average call center.  You need representatives that can begin nurturing a lasting relationship with the prospect and can screen the useless leads that will never develop. Last, and possibly most important, you must invest in the top of your sales funnel. Your sales representatives’ job is to close, to focus on the bottom of the funnel where they work best. They can only work their magic at the bottom of the funnel if you have sufficiently invested in the top.

There are three common ways that technology companies overpay for lead generation and not all of them involve outsourcing.

Having your internal sales professionals handle cold calling.

Many companies, especially emerging start-ups will attempt to increase efficiency by folding lead generation cold calling into the duties of their sales people. These are highly experienced, professional closers who often have high salaries that reflect their skills. If you have your senior sales executives making cold calls, you are employing the highest paid telemarketers in the industry.

Hiring a general call center.

At first, this may seem like a good and cost-effective idea since the cost per lead is lower, but the reality is that those leads rarely turn into opportunities. No matter the cost per lead, the cost per opportunity is very high.  Scripted call centers can’t make the type of connections necessary for a good business relationship. They are focused on quantity over quality; sifting through a mountain of leads looking for one gold nugget wastes more of your sales executives’ time and your company’s money.

Attempting to build an in-house lead generation solution.

At first glance, it seems like a cost-effective and sustainable long-term solution. But soon, the company realizes it has incurred additional management costs, training costs and all the problems that come with the churn. In the end, any cost-effectiveness of this solution has disappeared.

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