By now you have probably heard of the term pay per lead. Pay per lead is a dynamic, innovative idea that creates a mutually beneficial relationship between client and company. So what is pay per lead? Basically, pay per lead means that should you as an existing customer help the company acquire new business by way of a referral then you will be paid a set fee. Pay per lead can work in many different environments.
One popular way of using pay per lead is in the insurance industry. For example, you take out a life insurance policy. The insurance company then tells you that for every friend that you refer to them who signs a policy with the insurance company, you will receive a certain amount of money. This motivates you to acquire new business for the company. Naturally the insurance company would have to have built a trusting and respected relationship with you for you to feel confident referring it to a friend.
Pay per lead is oftentimes used between business partners. For example, you have two companies who work in mutually beneficial industries, such as interior decorating and house painting. Both these companies have websites. On each of these websites the companies will have a link to their business friend's website. If a visitor is on the interior decorator's website and clicks through to the house painter's website and acquires business, then the house painter will pay the interior decorator a pay per lead fee. This works vice versa and naturally creates a mutually beneficial relationship.
There is quite a few important factors that make pay per lead successful. Firstly, the set fee has to be worthwhile for the client to go out and find leads. Secondly, the set fee should not be too much that it would be financially beneficial for the business to simply acquire the leads themselves. The key is for the set fee to motivate the client to talk to friends and family and for the set fee to allow for the business to save money on advertising, rather than running at a loss.
Pay per lead is actually a very clever idea, because its primary basis is trust. The key to its success is for the business to offer good service to their clients. Think about it; only if you really trusted and were happy with a company would you want to speak to your friends and family about it. This means that the business has to provide good service at all times, ensuring that their clients are always happy. If their clients are not happy they will not care about the set fee, because they will not want to motivate their friends and family to sign up for a service that is unsatisfactory. This is a bad reflection on them! But if the service is excellent, the client will see that there is only benefit to generating leads for the company.
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