By What is a bad lead? What is a bad traffic source?
Personally, I don’t think there’s such a thing as a bad traffic source. The closest you can get is bot traffic, which is completely ineffective, but I even know some people using that very successfully in specific situations.
Internet marketing is a numbers game, and it works like this.
* How much does your traffic cost?
* How many leads do you get from the traffic (Cost Per Lead)?
* How many leads are opening/clicking your emails (Cost Per Active Lead)?
* How many leads are buying products (Cost Per Sale)?
The more leads and sales you get from a traffic source, the more you can pay for it. The less leads and sales you get from a traffic source, the less you want to pay for it, but that doesn’t mean it’s bad. It just means the numbers work differently.
Let’s take a quick look at how these numbers work…
You spend $1000 on 1000 clicks. 40% of these convert to leads, and your sales page converts at 1%. Which means:
1000 clicks
400 leads
4 sales
Those sales may not come immediately, but you can expect four of those leads to purchase, and I personally expect around 20% of the leads to be actively reading and clicking links in emails.
That means it’s cost you $1000 to get 400 leads ($2.50 Cost Per Lead), of which about 80 are active ($12.50 per active lead), and you get four sales ($250 Cost Per Sale).
Unless you have a superb copywriter, I doubt you’ll be converting a $250, or higher priced, product at 1% to cold traffic.
Add to that, these are averages.
Just because you get 1000 clicks, doesn’t mean those people will convert to leads at 40% and sales at 1%. Sometimes they may convert to leads at 20% and sales at 0.1%, and other times they may convert to leads at 50% and sales at 3%.
However, over tens of thousands of clicks, this will average to the numbers we first mentioned.
That’s just the way it works.
Personally, I like to work in scale. Large scale.
I’d rather use a slightly cheaper traffic source, that gets me leads for a fraction of the price, in vast quantities, for just a small drop in quality.
That’s how I added 2130 leads to my mailing list last weekend.
Next month, I’m going to share my lead generation source to Business Ignition members.
https://michaelwilding.com/business-ignition/
And it rocks!
Michael
P.S. I’ve had people ask me whether I sell traffic before, and we’ve chatted about it in our FB group. I’m still considering the possibility of doing this, and even combining it with an Autoresponder service that’s a fraction of the cost of most.
Let me know your thoughts in our FB group.
What do you think?