Many small business are struggling these days with their marketing efforts. Old school advertising strategies can only go so far and unless a small business adjusts their marketing efforts, they will lose out to the new advertising channels created by Internet-enabled phones and the Internet itself. But most small businesses have limited resources in regards to sales and marketing and while a business owner is used to wear many hats, learning the more difficult marketing strategies required to succeed on the Internet is almost impossible. If you talk to a business owner about Google Quality Score, A/B Split testing, Web Analytics, Pay Per Click advertising, or Facebook advertising you often lose them because they do not understand the lingo or have problems keeping up with those things already.
Then service providers entered the market offering to manage the online pay per click marketing efforts for a fee. However, the risk still stays with the small business. These service providers take 10% of the marketing budget in fees alone without providing any sort guarantees. Small businesses are at the mercy of these providers and need to trust them a lot.
Now there is a 3rd option and it is becoming quite popular. Local Sales Lead Generation with the risk for the small business. A small business has to determine what a new sales lead is worth to them and put a dollar amount behind it. A contractual agreement between the small business and a service provider then opens the door for this almost risk free advertising method for the small business. The sales lead service provider receives the above dollar amount per sales lead from the small business. The service provider will then do the marketing and pass on the leads to the small business. The small business will then have to sell the actual product or service. The moment a lead is passed on to the small business, the commission per lead is due. This process allows the small business to run a trial and to determine the quality of the leads. If all the leads are of low quality, they can stop the agreement and everyone walks away. If the leads are of good quality the small business just gained a new source of traffic.
The motivation for the service provider who send the leads is clear. Not volume will generate income, but high quality, highly targeted leads will open the door to a possible long-term stream of income. Of course there are a few things that need to be put into writing, but the overall process is easy and the risk for both sides is small.
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