Pay-per-lead Telemarketing can be just the ticket!


Pay per lead telemarketing can work very well in some circumstances especially where clients want to pay on results only but don’t want to pay out as much as they would do on "commission only" (by this we mean actually processing the order and payment and getting paid once the end client pays).

The main risk with pay-per-lead is that the prices are higher than for set rate telemarketing usually yet no guarantees that the lead will result in extra paid revenue. The quality of the lead is then questionned. 

To mitigate the risks of poor quality leads, qualification criteria should be agreed (that is what specifically makes a lead a well qualified lead) and then the telemarketing resource and the client can work to the same standard.

When considering the cost of what you are prepared to pay for each lead, also consider conversion rates of how many leads that are quoted for actually are taken up by the end client.  If you don’t already know this then some quick analysis going over previous quotes to assess how many were taken up should be a good indication.  This is all part and parcel of calculating the overall ‘cost-to-acquire’.

Once you have your price that you are prepared to pay then you can consult with a telemarketing agency. Some like us, will require a short trial at a fixed rate beforehand. (Ours is very low from just 7 hours!).  This trial is usually the only reliable way to determine the price per lead that the telemarketing agency is prepared to work for. (We have to do this as all of our staff are payroll and it’s one of our conditions to ensure that people are not working at a rate equivalent to below the national minimum wage).

Pay-per-lead campaigns are sometimes looked down upon in the telemarketing industry as the sort of work that people take on when they are desperate ie; just starting out or not very good! It’s perceived sometimes that people who do this are unable to win hourly-rate work!  We look at this differently and take the view that if people are confident with what they do for a living then there is a higher profit margin to be had and this can sometimes be a good match commercially between client and telemarketing agency.  On the odd occassion there are comments made that client’s will start a telemarketing agency off with paying per lead but then later ‘reward’ them by moving to an hourly rate pay rate.  This is upside down as far as we are concerned. If we have proved ourselves with pay per lead why on earth would we want to reduce our prices as a "reward"!

Pay-per-lead telemarketing usually is attractive to clients that are not particularly interested in sales pipeline for ongoing marketing and sales purposes and who just want to have instant leads and appointments. It is usually attractive from a cashflow perspective too and client’s don’t mind paying more if it makes a campaign self-financing in the medium term.

Bear in mind that pay-per-lead can often be used as "filler" work in between other fixed campaigns so there are little guarantees sometimes as to when the hours will be worked or how much time will be devoted to pay-per-lead campaigns so results can possibly be a bit more unpredictable than with a fixed rate campaign.

Feedback of calling lists is also something that is not usually provided as if the telemarketing agency is sourcing their own data and working at their own risk, there is value to be had in this pipeline that can possibly be sold elsewhere.

I hope this article has given some thoughts into pay-per-lead telemarketing and welcome comments.



  • motivational quotes

    Pay-per-lead Telemarketing can be just the ticket! | I was suggested this website by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my problem. You are amazing! Thanks! your article about Pay-per-lead Telemarketing can be just the ticket! |Best Regards Veronica

  • Quincy Maruscak

    Hey, i just wanted to say i genuinely enjoyed your post, and i that i feel i may possibly be able to take some ideas from it Thanks. traffic seo

  • Julene Cendan

    Awesome post man, maintain up the good function.

  • Belinda Summers

    As i read the article, i think pay per lead telemarketing designed to create sales opportunities for independent business consultants. It also attract the clients that are not particularly interested in sales pipeline.

  • Carl Lewis

    I just recently found this blog and have found out that it is a great read.

    I would just like to share that pay per lead is indeed a great way to generate leads while still keeping the company’s budget intact. Quality leads need not be as expensive as to empty one’s wallets over them.

  • telemarketing leads

    Hi ,thanks for the tips. I have also tips in making calls sound natural..hmmn..I think Don’t read too fast, Use natural and appropriate emphasis on key words, Avoid speaking in a monotone, Pause slightly at the end of each sentence, Sound genuinely interested in the prospect’s questions, concerns, or objections.

Powered by WordPress. Design: Supermodne.