Now that you’ve got funding, the next step is to deliver the rosy picture you painted when raising your round.
This means hitting the milestones and sales numbers that you promised your investors. One way to do this is through effective lead generation.
With an effective lead generation approach, like cold emailing, you can get 10+ sales-qualified leads every month to grow your sales pipeline, just like we do for our clients here at The Scalelab.
Have a look at our results below:
After generating $50 million in pipeline value for clients, we know how powerful effective lead generation can be in scaling your company fast.
But the question is: How much does it cost?
While, no doubt, effective lead generation works, it’s not wise to put all your eggs in one basket.
You still need to:
Identify the best lead generation approach for your needs and budget.
Balance your burn rate and runway to spend your investors’ money wisely.
Strategically assess which approach can give you high-leverage returns for lower costs.
And to achieve these three, you must carefully assess the different lead generation options and how much they cost.
In this article, we’ll help you do exactly that.
So if you want to make sure you invest in a money-wise lead generation approach, read on! 👇🏻
Track Your Cost per Lead To Optimize Your Lead Generation Strategy
How Tracking Lead Generation Metrics Can Generate 5000+ Leads
Want to hit high results consistently and predictably? Track your sales metrics.
Data is crucial to optimize your lead generation strategy and make sure your sales and marketing team are performing at the optimal level.
Without it, your lead generation approach will rely on assumptions, which can be a hit-or-miss.
Simply put: Failing to track sales metrics = A perfect way to burn investors’ money.
Why Track Your Cost per Lead?
When it comes to lead generation, the one metric you shouldn’t overlook is the cost per lead.
The cost per lead tells you how much you need to get a new lead for your business. The lower the cost, the more effective you are at generating leads. The higher it is, the more you need to optimize your strategies.
By tracking your cost per lead, you can:
Attach a monetary value to your leads and effectively budget for your lead generation campaigns.
Optimize your lead generation approach based on actual data.
Determine which channels and strategies are cost-effective in generating quality leads.
Note: Quality leads refer to people who are:
More likely to buy from you.
Have the highest lifetime value.
High a high rate of referral
Scale the lead generation channels that give the best results.
How Do You Track and Calculate the Cost per Lead?
You can calculate the cost per lead for any marketing campaign by following these steps:
Track the following variables:
Total Marketing Costs - How much did you spend to acquire new leads?
Total New Leads - How many leads did you acquire using the marketing spend above? Note: A lead is a potential customer interested in your product or service.
Follow this formula: CPL = Total Marketing Costs ÷ Total New Leads
Thus, if you spend $2,500 to acquire 10 leads, then your cost per lead is $250.
Cost per Lead Calculator
Now, you don’t need to level up your math skills just to calculate the cost per lead. That’s inefficient. Instead, you can use this “cost per lead calculator” by Calculator Academy:
Source: Calculator Academy
Lead Generation Pricing: The Average Cost Per Lead (CPL)
Cost per Lead By Industry
Here’s the 2023 projected average cost per lead by the industry as forecasted by Linchpin SEO.
Looking at the table below, if you’re in the IT industry, then you can expect to pay an average CPL of $106. Meanwhile, the non-profit industry boasts the lowest CPL, ranging between $16 - $43.
Industrial and Manufacturing
Media and Publishing
Travel and Tourism
Source: Linchpin SEO
Source: Linchpin SEO
Cost per Lead: Organic vs Paid Leads
You can generate leads organically or through paid methods. As shown below, organic costs less than a paid approach.
But each comes with its pros and cons. Whichever you choose will depend on your needs and budget:
An organic approach means producing high-quality leads at a low cost. But this approach can require a longer time investment.
Paid lead generation can produce results much quicker, but it’s typically more expensive.
Here’s a comparison of organic and paid lead generation costs per industry.
Aerospace & Aviation
Hotels & Resorts
IT & Managed Services
Oil & Gas
PCB Design & Manufacturing
Staffing & Recruiting
Transportation & Logistics
Source: First Page Sage
Source: First Page Sage
Cost Per Lead (CPL) by Lead Generation Channel
Tracking the CPL by channel lets you assess which medium works best for your niche and market.
As shown below, events and tradeshows have the highest CPL among the channels. This could be due to the high cost of venues, catering, and other associated costs.
Display Advertising (Premium)
Display Advertising (Programmatic)
Events & Tradeshows
Public Relations/Earned Media
Search Engine Advertising
Search Engine Optimization
Social Media Advertising
Social Media Advertising
Traditional Advertising (TV, Radio, Print)
Source: Linchpin SEO
Source: Linchpin SEO
Lead Generation Pricing: DIY vs. Outsourcing Lead Generation Strategies
Inbound Lead Generation
Want to get your brand found on search engines? Writing an article, like the one you’re reading now, is a great way to achieve this.
Insightful LinkedIn, Twitter, IG, and Facebook posts are also great for attracting leads from social media platforms to your website.
As long as you write content with your target customer in mind and bring value, you’ll attract them like a magnet.
A great example of this is College Raptor, a startup that raised Series A for their tech that matches high school students with the right college. Their approach?
Creating evergreen content on topics that their audience will always search for.
Building awareness and visibility by creating content that may not check all SEO requirements, but is more likely to go viral on social media.
Developing pieces geared towards increasing the number of inbound links to their webpage.
Because of their highly shareable content and evergreen topics, they established their brand reputation and achieved huge growth. As a result, they generated over 100,000 organic sessions per month and 1 million website visitors in one year.
Content Marketing: Pros and Cons
Great support for other lead-generation channels
Difficult to track, manage, and distribute
This is especially true if you have multiple campaigns. Thus, you won’t always know if your content campaign is working.
Content Marketing Pricing Options: DIY vs Outsourcing
Here are some of the tools you need to do content marketing on your own:
Outsourcing costs depend on the type of content you’re outsourcing:
Here’s one of the common downsides of inbound marketing: It can be quite slow.
But if you want to speed things up, you can use paid ads to put your content or lead magnet right in front of your ideal audience in less time.
Here’s an example.
SamCart founder, Brian Moran, used Facebook Ads to sell his training products and courses.
He targeted three different groups:
His existing email list
Lookalike version of his email list
Custom audience created using Facebook’s native + advanced targeting features.
The results? After spending $8,240 for the ads of these groups, he was able to get:
Group 1 - $3,496 in sales from $1,800 ad spend.
Group 2 - $1,546 in sales from $895 in ad spend.
Group 3 - $9,039 in sales from $5,153 in ad spend
As seen here, Brian was able to use paid ads, such as Facebook ads, to put his offer in front of the right audience. All the 3 groups he targeted were profitable.
Plus, with Facebook’s native + advanced targeting features, he was able to get a whopping $9,000 in sales despite spending only $5,153 in ad spend for group 3.
Paid Ads: Pros and Cons
Reach more people faster
Note that paid ads are not limited to Facebook Ads, it also includes Google Ads, YouTube ads, and more.
And these 2 search engines alone? They can bring your brand in front of billions of users.
Not to mention, most people on social media platforms are not there to read your ad. So you need to make sure your ad catches their attention.
Target your ideal prospects
Strict policies and restrictions
This is to make sure their users still enjoy using their platform, while they cater to advertisers.
If you’re not savvy enough to tiptoe around these policies, your account could get banned or restricted.
Paid Ads Pricing Options: DIY vs Outsourcing
Paid advertising, is often called “PPC” or “Pay per Click.” This is because it’s one of the most common ways to pay for it.
Here are some of the costs you can expect per type of paid ad:
You also need to consider training and certification programs to learn paid ads. For Google Ads courses, you can expect to pay $350 - $4000.
Social media marketing certificate courses cost around $2,500 (cheaper for on-demand video courses).
Social Media Outreach
Want to maximize your social platforms, like Facebook, LinkedIn, and Twitter? Then social selling or social media outreach is for you.
Unlike social media marketing, with social selling, you don’t need to wait for prospects to message you first or engage in your posts. You take the initiative and contact them first. This is a great approach because you get to actively qualify the leads you contact, and there are lesser touchpoints.
Furthermore, social selling is a great support for your other lead generation strategies. For example, at The Scalelab, our lead generation approach is a mix of cold email outreach and LinkedIn outreach and follow-ups.
After sending our cold emails, not only do we follow up with another email, but we also send them short and punchy LinkedIn follow-ups like this:
“Have you seen my email (First Name)? Let me know if we’re good to talk about (prospect’s company name) in 2022 growth projects. Talk soon”
Or something like the sample note below.
Source: The Scalelab
A connection acceptance rate of 68% (which is pretty above average, considering the typical LinkedIn acceptance rate is 30%)
And an email reply rate of 63% (which is 12X higher than the typical cold email response rate)
Social Media Outreach: Pros and Cons
Great support for social media marketing (SMM) and cold emailing.
Can be done via mobile
Social Media Outreach Pricing Options: DIY vs Outsourcing
One of the most common tools for social selling is Sales Navigator.
Some of the other tools you may need are the following:
2. Cold Calling
Want a lead-generation approach that gets you leads with just one touchpoint? With cold calling, all you need to do is pick up the phone and call prospects that fit your customer profile.
With this quick call, you can quickly gauge interest, answer questions in real time, and handle objections quickly. All of these get you one step closer to the sale.
Cold Calling: Pros and Cons
Direct Feedback from Prospects
Require More Training
Thus, the person performing the cold-calling must master the brand from the inside out.
Cold Calling Pricing Options: DIY vs Outsourcing
Some of the tools you can use for cold calling are the following:
For cold calling setup and training, you can expect to pay $2,500 - $10,000+.
Telemarketing company based in the U.S. = $20 - $75 / hr
3. Cold Emailing
Want a low-cost and highly effective approach to getting leads? At The Scalelab, we used cold emails to generate 5000+ leads and over $50 million in pipeline value for our clients.
And if you look at the numbers, I’m talking about:
92% Open rate - (3X the average open rate of 25%)
68% Connection acceptance rate - (2X the average LinkedIn acceptance rate of 30%)
That’s how effective cold email can be in generating leads for your company. And if done right, you can get responses like these:
Response from the global head of a large insurance company:
Response from a C-level executive of a large bank.
These are just some of the interested leads we got for our clients.
Cold Email: Pros and Cons
Cold emailing is cost-effective
Easier to Ignore
This is because we send personalized cold emails with high-value offers.
Scalable and Easy to Automate
Prone to spam
At The Scalelab, we lower our spam complaint rate to less than 0.1% by making sure we only send max 50 emails per day.
Cold Email Pricing Options: DIY vs Outsourcing
When doing cold campaigns on your own, you need to invest in various tools:
This alone could cost you $92 - $1,025/month.
However, you also need to consider the time and money investment to learn cold email copywriting and strategies.
Courses typically cost around $150+ depending on the complexity. Meanwhile, private consulting costs around $4,500.
Here are the pricing options at The Scalelab:
Get 10+ Leads Every Month with The Scalelab
Ready to get 10+ leads month after month WITHOUT spending thousands on cold-emailing tools and courses or spending years learning the skill? We at The Scalelab have decades of combined experience in cold outreach and sales. After generating 5,000+ leads and over $50 million in pipeline value for clients, we know what it takes to consistently get you sales-qualified leads that’ll turn into sales.
Our team has helped companies land appointments with top-tier businesses such as Google, Nike, Citibank, and Samsung. Our lead generation campaigns consistently deliver warmed-up and highly qualified sales leads that directly increase your company’s pipeline value.
Come and say hello or drop us a line at firstname.lastname@example.org