Pay Per Lead Delivery Problems

In today’s video I am going to answer a big question that people have before they join our course.

The question I get is, “what happens if a client orders 100 leads and pays upfront and I can’t deliver the Leads to them?” or “What happens if my client pays $50 a lead, they write me a check for $5,000 but it costs me $6,000 to deliver those leads?”.

The Pay Per Lead Model is a higher-risk but even higher-reward game! That is why I am going to share with you how to mitigate that risk and make sure you only reap the rewards.

In my program, The Pay Per Lead Agency Blueprint, we give you all of our funnels that my Agency is currently using to deliver hundreds of leads per week to our clients. They have been trialed, tested and perfected so that you don’t have reinvent the wheel.

These funnels will help ensure that you can deliver great quality leads!

We also teach in our course how to run multiple ad networks for your chosen vertical. This is to ensure you don’t have all your eggs in one basket (most likely Facebook). We teach how to diversify and run ads on YouTube, Twitter, Google Display Network and different ad platforms that are gonna help you mitigate this risks.

Zero Experience in a New Industry?

For our students that are starting out in a new industry and have no experience we recommend negotiating a Hybrid deal when starting out.

This model is preferred by Pay Per Lead beginners as the risk is much smaller.

With this model, you ask the client to pick up the advertising spend. You’re still responsible for building the funnels and running the ads, but you don’t have to shell out from your own wallet.

Say your client is paying $5000 per week for advertising spend. It’s then up to you to generate as many high-quality leads as possible for that amount of money.

When the client receives the leads, their sales team will try to convert them. For every lead they convert, you’ll get paid an agreed fee.

Clients love this kind of deal because they know they’re getting plenty of bang for their buck.

Say a $25 lead is worth $3000 dollars once converted into a customer. The client agrees to pay you 10% per converted lead. That means you’ll get paid $300 per lead.

And 10% is pretty low – I wouldn’t recommend going any lower. I’ve worked with the hybrid model on a number of occasions and, sometimes, I get paid up to 25% of the worth of the converted lead. It’s all about good negotiation.

That said, don’t push too hard. Clients also have to pay for their overheads, and they’ve already shelled out for advertising spend. So, anything between 10%-25% commission is a fair deal.

Of course, as with all models, there is an element of risk.

Number one, and this is the most important: if your leads don’t convert, you’ll get paid nothing. This is unlikely, but I’ve seen people with bad creative or shoddy funnels come out of these deals looking worse off.

Number two: you need to have a good relationship with your client OR will need access to their CRM system. I’ve only heard of clients stiffing lead agencies once or twice, but it can happen. They’ll claim that only X amount of leads have converted, whereas the figure is closer to Y. Access to the CRM means you’ll be able to keep an eye on conversions.

Number three: you may have generated some red hot leads, but the sales team fail to convert them. One hangover, a bit of sickness, or an absence, and you can say “goodbye” to your money.

This model might not sound attractive to everyone, but in the right circumstance it can be very attractive. Especially if you are new in an industry, this model will allow you to learn on other people’s dime.

Niche within a niche

If you’re trying to do PPC marketing in a competitive industry, such as insurance, finance, etc., you’ll find yourself competing against big players with deep pockets who’ve been in the game for decades.

So, if you’re generating leads via paid traffic (Facebook, AdWords, etc.) on a “Cost Per Lead” basis or a retainer contract on behalf of a client, you need to narrow down to one smaller micro niche.

Follow this pyramid guide as a template:

If you folow my methods it is very, very rare for you to be able to enter a new market and not be able to deliver the leads for them. In fact, I can probably count on one hand the number of times that we haven’t been able to deliver the leads, including our students.

I hope you enjoyed this video. If you have any questions please reach out and let us know.

Free Training

Flexx Digital is a PPC agency that uses the Pay Per Lead model – no retainer contracts.

If you want to find out more about this Pay Per Lead model, and how we run the business, check out my free case study.

Inside you’ll find how I:

  • Severed ties with retainer contracts once and for all
  • Moved away from local businesses
  • Started working with national B2C companies
  • Land high-ticket clients
  • Found the verticals we work in
  • Consistently generate leads of the highest quality

Click below to watch it now:


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