How Much Is a Lead Worth?

We all want new clients, right?  Everybody out there talks about how much the Lifetime Value of a client is, but successful people focus on a metric that is just as important, if not more so:

The Lifetime Value of a Lead!

A lead (properly handled) is worth more to you than the client who just retained you for their one case in their lifetime.

Every prospective client that comes in contact with you or your firm that doesn’t become a client (which is 90% of them), needs to be handled in a certain way so that they “leave” as fans.  This 90% has value to you in at least two ways:

1. They can become an ambassador and a recurring referral source for you and your firm. For starters, you should put them on your mailing list to receive your monthly newsletter. They may not refer directly, but they may have their own publishing and distribution media that they will promote you in. This is especially true, if they are business owners, accountants, bookkeepers, real estate professionals, mortgage brokers, bankruptcy or family law attorneys.  Someone who likes you can become a permanent referral source who can tell others your story and what kind of clients you take!

2. Leads that fall outside the IRS tax problem resolution arena can be referred out to other professionals, like bankruptcy attorneys.  Having one or more local area bankruptcy attorneys that you can refer to will pay dividends via reciprocation. Depending on your state’s licensing regulations you may also be entitled to collect referral fees.

Let’s say that your average prospect to client conversion rate is 10%, meaning you convert one new client out of 10 new leads received. And let’s say you received 35 leads from a marketing campaign that advertised a “Free Consultation” and cost you $4,500.  The cost per lead then is $128.57. If you marketed your “information” versus marketing for cases/clients you probably would have received at least double (see explanation below) the amount of leads, bringing your cost per lead down to $64.29.

But even more important than that, under the latter scenario you should convert 10% or 7 (70 leads @10%) into new clients versus only 3.5 leads (35 leads @ 10%) when you market (like everybody else is doing) a “free consultation”. You also will obtain more leads which mean more ambassadors and fans (if handled properly) that will refer more clients to you!

You see, when you market your information, special report, book, DVD, website (versus for cases/clients) you open up the “valve” that much wider. When you do this, your overall marketing costs decrease by attracting more prospects to you.

It's time to look at your business more strategically.

Here's to Supercharging Your Profits!