What is Lead Generation? Guide for New Business Owners

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.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block} Is your team  struggling to find new leads?  Or does your business need help  targeting the right leads ?  Several small businesses fail to generate the highest quality leads because  they focus on other processes  like social media marketing or lowering costs.  Hi, my name is AJ! Over the last decade, I scaled and (recently) sold my business for  multiple seven figures . I started Small Business Bonfire (SBB) to help small business owners like you. As my company grew, I quickly realized  the importance of attracting and nurturing the right leads.  Keep reading to learn how to implement a  lead generation strategy  that will  increase sales!









Key Takeaways







A lead is someone who has shown interest in your brand. 




Lead generation is when a business focuses on attracting more potential customers to their brand. 




Some strategies to secure leads include social media, email marketing, and direct mail. 








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A lead is  someone who shows interest in a business’s products or services.  Usually, companies reach out to leads  after  the individual initiates communication (submitting personal information).  Leads are part of the life cycle that aims to transition  visitors  to  paying customers.  Therefore,  managing and nurturing leads  effectively is  crucial  for sales teams to generate sales and customer loyalty.  Lastly, there are  three kinds of leads , including the following:  Marketing Qualified  Sales Qualified  Product qualified  Service qualified Here’s what you need to know about these lead variations! Marketing Qualified Lead (MQL) Marketing qualified leads are  prospects who have engaged with your company’s marketing efforts.  Still, these leads  aren’t ready for sales tactics , like a call or product demonstration.  One  example of an MQL  is someone who fills out a landing form to receive a 15% discount for their first order.  Sales Qualified Lead (SQL) Sales qualified leads are  contacts who have expressed interest in purchasing your products or services.  For example, an SQL would request more pricing information. These individuals are  serious about purchasing something ; typically, they want more information before buying.  Product Qualified Lead (PQL) Product qualified leads are  contacts who have used your product and express interest  in becoming a paying customers.  Typically, PQLs exist for companies offering a free or limited product version.  Service Qualified Lead Lastly, there are service qualified leads.  These leads are  contacts who have shown your service team that they’re interested in becoming a paying customer.  For instance, an SQL would tell a customer support rep they want to upgrade their product or service subscription. 















What is Lead Generation?



Lead generation  attracts  and  converts potential customers  into someone interested in a company’s products or services.  The lead generation process involves  different strategies  to garner interest, such as through the following outlets:  Online content Social media Email marketing campaigns Further, the  main goal of generating leads is to create a sales pipeline,  amplifying the likelihood of turning prospective customers into paying ones. 





















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Pro Tip #1: Ensure your team has a unified definition of what factors and characteristics distinguish a qualified lead from an unqualified one. 
- AJ Silber









The Lead Generation Process



Here’s how the online lead generation process (typically) goes.  Following this  three-step process  is essential to generate leads likely to convert to paying customers.  Step 1: Lead Discovers Your Brand  The first step in the lead generation procedure is when a potential customer, or “lead,”  discovers your brand.  Someone discovering your company can occur through various channels, such as:  Social media Online advertisements Word-of-mouth recommendations  Internet search Step 2: Lead Clicks a CTA  The second step in generating leads occurs when a prospect, intrigued by your brand, clicks on a  call to action (CTA). The CTA  directs the lead to a landing page  where they can learn more about what your business offers. Some examples of CTAs include the following:  An enticing offer A downloadable resource  A subscription button  Step 3: Lead Fills Out a Form  The final step in this process is when the lead  fills out a form on the landing page.  This step typically involves the lead providing their  contact information in exchange for an offer , deal, or more information. Therefore, these actions  solidify their interest  and allow your business to follow up effectively.















Why is Lead Generation Important for Small Businesses?



Are lead generation strategies essential for a business to be successful? Yes! Sales and marketing teams  must understand  how to generate leads to boost sales. Target the Right Customers  Targeting the right customers can  improve the efficiency and effectiveness  of your marketing efforts.  Finding your target audience enables businesses to  tailor their messages to a specific group  more likely to be interested in their products or services.  Also, understanding and reaching the right customers can lead to the following things:  Increased customer satisfaction More customer loyalty Higher revenue and profitability More sales conversions Increase Brand Awareness  Lead generation  improves brand awareness  by engaging a wider audience through various strategies like:  Social media marketing Content creation Email marketing campaigns These initiatives  educate potential customers  about the brand, products, and services and  establish your company as a reputable business.  Then, as more leads interact with your content and share it within their networks, the  visibility  and  recognition  of your brand  amplify , resulting in increased brand awareness! Get Great Prospect Data  Excellent prospect data offers  invaluable insights into customer behavior. As a result, businesses can  tailor their marketing efforts  for higher engagement and conversion rates.  Also, companies can design  personalized marketing strategies  that resonate with their target audience by understanding potential customers’ needs and interests.  Build Brand Loyalty  Lead gen strategies  foster brand loyalty  by establishing and nurturing relationships with potential customers through personalized content.  This engagement, over time,  promotes trust  and positions your brand as a  valuable resource , making leads more likely to choose your company when they’re ready to buy.  Also, an effective lead generation strategy includes  follow-ups and customer retention practices  that keep your brand top-of-mind, further solidifying customer loyalty. Increase Business Scale Lead generation helps businesses scale by  building a consistent pipeline of potential customers  interested in their products or services.  A business can  expand its customer base  by continuously attracting and converting new leads. As a result, this increases a company’s potential for  revenue  and  growth .  Also, through proper lead data analysis, businesses can refine their offerings and target higher-value prospects, further enhancing their scalability!















Lead Generation Strategies 



Lead generation companies utilize  numerous strategies  to find potential customers for businesses.  Below, I’ve listed popular techniques for lead management.  SEO Lead Generation SEO is helpful for companies because it  ensures users can find their website, social profiles, etc., via search engines.  What is SEO? SEO, or  search engine optimization , is the process of  enhancing a website’s visibility  on search engines like Google, often through the following strategies: Optimizing content with keywords Improving site design Building high-quality backlinks SEO Lead Generation Beneifts  The primary benefit of using SEO to find potential customers is that it  makes your business easier to find on search engines.  For instance, even if someone isn’t looking for your website specifically, typing specific keywords could lead them to you! SEO Pros and Cons The pros of SEO lead generation include the following:  SEO is a cost-effective lead generation strategy. When your website ranks high in search engine results, you attract potential customers without additional costs. On the other hand, a con of SEO lead generation is: SEO is a process that takes time. It can take several months to see significant results.  SEM Lead Generation Although SEO and SEM are similar, they’re different lead generation strategies that benefit companies.  What is SEM? SEM, or search engine marketing, is a  digital marketing strategy  that promotes websites by  increasing their visibility in search engine results pages  primarily through paid advertising. SEM Lead Generation Benefits  Some  benefits of SEM  include the following things:  It allows companies to advertise within search results  It can increase website traffic  It can drive leads and generate new sales  SEM Pros and Cons The  pros of SEM  lead generation include: SEM offers immediate visibility. Unlike SEO, which takes time to build, SEM can immediately put you on the first page of search results. In comparison,  a con of SEM  lead generation is: SEM can be expensive. You have to pay for every click in the pay-per-click model, and costs can add up quickly, especially for competitive keywords.  PPC Lead Generation PPC means  pay-per-click.  When someone says PPC, they’re referring to  ads on search engines.  Companies that post ads on search engines pay each time a user clicks on their ad.  PPC Lead Generation Benefits  The primary  benefit of PPC  is that search engines are prime real estate for advertising.  Think about how many times you turn to a search engine to give you answers.  Now, think about how helpful search engines can be for consumers!  PPC Pros and Cons The  advantage of using PPC  to find leads is that millions use search engines, meaning you can  access plenty of new customers.  The drawback is that PPC  relies heavily on target keywords  and your budget.  Finding the right keywords is tricky, and some small businesses can’t afford PPC.  Email Lead Generation Email is  one of the most popular lead generation tools  because almost every consumer has an email address.  Email Lead Generation Benefits  There are  several advantages  of utilizing email for a lead generation campaign, including the following:  It’s easy to contact multiple people because most shoppers have email It’s an easy way for a sales team to find high-quality leads Email Pros and Cons The  pros of using email  as a lead gen strategy include:  Email offers valuable customer data Your marketing team can automate these tasks There is no financial commitment for the customers You can include CTAs throughout your emails. Regarding the  cons , here’s what you should know about this strategy: You can’t guarantee everyone will read your emails Customers may submit an old or fake email address Content Lead Generation Content is an excellent way to generate leads and  guide them toward a landing page.  Content Lead Generation Benefits  The  benefits of using content  to generate leads include the following:  It’s a valuable strategy. It contains free information (your prospects don’t need to pay to learn about your brand)  It allows your company to be creative when generating leads.  Content Pros and Cons The  advantages  of content lead generation include:  You can include CTAs anywhere in your content  You can showcase your brand’s message, products, services, etc.  On the other hand,  some downsides  of this lead gen tactic include:  It may not bring in many high-quality leads  Teams must continually alter the content to keep up with industry trends Social Media Lead Generation Social media is one of the  easiest ways to communicate  with your target audience.  Some examples of social media platforms include:  Twitter/X Instagram  LinkedIn  Facebook  Snapchat  Reddit  Social Media Lead Generation Benefits  Some  benefits  of using social media to generate leads include:  It guides your followers to specific CTAs  You can link social media posts directly to your website  The platforms are free Social Media Pros and Cons The  pros of using social platforms  to find potential customers include:  You can collect and organize data about your customers  You can reach several customer segments (and discover new ones)  People can learn about your brand quickly  Regarding the  cons , here are some aspects to note:  There are several spam accounts on social media platforms  Some small businesses may get overwhelmed by the amount of data these platforms provide  Product Trials Lead Generation Product trials are an  excellent strategy to use to break down sales barriers.  Also, offering product trials shows potential customers you’re confident in what you’re selling.  Product Trials Lead Generation Benefits  Some  benefits  of offering product trials include:  Potential customers get first-hand experience using your product  Product trials entice consumers to purchase add-on products or services Product Trials Pros and Cons Here are some  pros  of doing product trials to secure leads:  Customers (typically) make on-the-spot purchasing decisions  It’s an excellent way for your sales team to connect with potential buyers  In comparison, here are the  cons  to be aware of:  Product trials are time-consuming  Product trials can be difficult to do on a large scale  Blogging Lead Generation Blogging as a lead gen tactic is  often overlooked.  Including in-depth articles on your company’s website has several advantages and  helps first-time visitors learn more  about your brand.  Blogging Lead Generation Benefits  Some of the  benefits  of utilizing a blog as a lead generation campaign include:  Teams can use blog posts to promote an offer.  You can write an entire post to emphasize the end goal (purchase something)  CTAs are easy to see and highly relevant. Blogging Pros and Cons Some  pros  of blogging include the following things:  It can boost your website’s SEO (search engine optimization)  It helps potential and current customers learn more about your brand Highlighting products or services can foster deeper customer relationships  Regarding the  cons , here are a couple of things to know:  People may not read the entire article thoroughly  You may have to hire an outside source to create blog content Referrals Lead Generation Referrals are also called  word-of-mouth marketing.  Some sales experts consider referrals the  most effective  marketing tactic! Referral Lead Generation Benefits  The benefits of generating high-quality leads through referrals include:  It gets your brand name in front of more people  It increases your chances of generating more leads  Referral Pros and Cons The  advantages of utilizing referrals  for lead generation include: Referrals come from trusted sources such as friends, family, or satisfied customers Referrals are often an inexpensive way of acquiring leads  On the flip side, some of the  disadvantages  include: Businesses have little control over who is referred and when Depending solely on referrals can risk the flow of new leads Event Marketing Lead Generation Attending or hosting events is an  effective strategy to connect  with your audience.  Also, this strategy helps your team find new leads who haven’t discovered your company yet.  Event Marketing Lead Generation Benefits  Some  benefits  of event marketing include:  You can meet face-to-face with potential customers  Teams can nurture new contacts into qualified leads  Event Marketing Pros and Cons The  pros  of event marketing extend to the following areas: It provides a platform for real-time engagement with potential customers, fostering connections. It offers a unique opportunity to tangibly demonstrate your products or services, leaving a lasting impression. On the other hand, the  cons  of event marketing include: Events generally require a substantial investment of time and resources, which may not be feasible for smaller businesses. The return on investment can be unpredictable or difficult to measure, especially in the short term. Community Building Lead Generation Community building is an excellent lead generation tool because it can turn visitors into leads.  An  example of community building  is including a knowledge hub on your website! Community Building Lead Generation Benefits  Creating a community is  beneficial for finding leads  because potential buyers can get advice or recommendations from people who have used the product.  Also, community building  fosters more meaningful customer relationships.  Community Building Pros and Cons One notable advantage is that community building  promotes customer loyalty and longevity.  However, there are also challenges associated with community building.  A significant drawback is that  it can be time-consuming and resource-intensive.  Mailers Lead Generation Although physical mail isn’t as popular as before, it’s  still effective  when companies find qualifying leads.  Mailer Lead Generation Benefits  The benefit of using direct mail to find leads is that consumers have a  hard copy  of your company’s products and services.  Although technology is widespread,  several people prefer a physical copy! Mailer Pros and Cons An advantage of mailers in lead generation is their tangible nature.  Unlike digital ads that can be easily  ignored  or  forgotten , physical mail  demands attention  and can leave a lasting impression.  However, a significant drawback of direct mail is its  cost .  Producing, printing, and mailing promotional materials can be  significantly more expensive  than digital methods. Retargeting Lead Generation Sometimes, people need a reminder about your brand.  That’s why retargeting is so powerful!  Retargeting Lead Generation Benefits  Some benefits of retargeting include the following:  It’s a proven strategy to convert warm leads  It helps teams collect information about their target audience  Retargeting Pros and Cons Retargeting efforts have several  advantages , including the following:  Teams can automate this task.  It helps separate the people who are actually interested in your products from those who are simply browsing. On the other hand, some  cons  of retargeting include:  There’s the potential to irritate customers by constantly showing them ads. There’s a risk of overexposing your ads to people who have already decided not to purchase your product or service. Video Marketing Lead Generation Video marketing content allows businesses to  create engaging content  that informs viewers about their products or services! Video Marketing Lead Generation Benefits  A benefit of video marketing to secure leads is that  it lets you get creative! Consumers value  creativity  and  authenticity , and video marketing allows you to showcase both characteristics. Video Marketing Pros and Cons An advantage of video marketing is its  ability to engage audiences dynamically.  The audio-visual format can convey information more effectively than text.  Conversely, video marketing can be  costly  and  time-consuming  to produce, especially if you aim for high-quality content.  Podcasts Lead Generation Podcasts have become an extremely popular way to attract new audiences.  Podcast Lead Generation Benefits  The main benefit of using a podcast to find quality leads is that they’re  relatively inexpensive to start  and offer a  unique way to connect with consumers.  Podcast Pros and Cons On the positive side, podcasts allow for deep dives into industry topics and trends, which can  position your brand as an expert in the field  and  increase trust.  On the downside, creating a podcast  requires a time commitment  for recording and planning, production, and promotion. Partnership Lead Generation Partnerships are an  underrated way  to find new leads.  Typically, when businesses are partners, their target demographic is the same.  Partnership Lead Generation Benefits  The benefits of partnerships to find leads include:  The strategies can be simple and inexpensive.  The tactic allows businesses to display two logos or brands simultaneously. Partnership Pros and Cons The pros of partnerships for lead generation include: Partnering with another business allows you to leverage their resources and customer base Partnerships can be cost-effective, as expenses for marketing initiatives can be shared between the two businesses Here are the  cons  to be aware of:  If the two businesses have different objectives or ethical standards, it may lead to conflicts There’s a risk that one partner might gain more from the partnership than the other

















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