Lots of Vendors Can Help You Find Leads on the Web

By: David Raab | August 15th, 2014 | Comments Off

Few people would suggest you learn salesmanship from the play Glengarry Glen Ross,* but its central message rings true: good leads are the lifeblood of a sales organization.** That’s why scanning the Internet to find new  prospects is such an exciting opportunity. At least a dozen firms are now following that path. Read the rest of this article »

Here’s the fastest way I know, to increase your sales and profits!

By: Jim Connolly | July 25th, 2014 | Comments Off

If you want to generate high quality sales, extremely quickly, here’s a suggestion. It’s based on an idea I have used and seen used, many times, with amazing results. Read the rest of this article »

A tested, proven way to attract more sales leads

By: Jim Connolly | June 27th, 2014 | Comments Off

Today, I want to help you attract more high quality sales leads and referrals, with a tested and proven idea.

I need to start by asking you an important question: How easy is it for people to describe what makes your service special? Read the rest of this article »

How To Sell Like The Hawaiian Beach Boys

By: Rohit Bhargava | June 6th, 2014 | Comments Off

There is an original Hawaiian Beach Boy and his name is Ted.

Every day at the Waikiki Beach Boys surf shop on the beach in Oahu, Ted teaches tourists how to surf and sometimes shares a story about the legendary Pink Palace hotel on the beach. Or tells visitors how he first purchased the name of the iconic business all the way back in 1977. Or jokingly complains how it’s sometimes tough to get his team of young tanned beach boys working because they focus a little too much on the beach girls. But the biggest challenge Ted faces is that there are lots of people offering surf lessons on the beach, and they all offer pretty much the same thing. Read the rest of this article »

How Many Leads Do You Need to Generate? Use This Simple Calculator.

By: Ruth Stevens | May 9th, 2014 | Comments Off

One key to successful B2B lead generation programs is to calculate exactly the right number of qualified leads to provide to sales—as part of your campaign planning.  If you generate too many leads, you’ll be wasting precious marketing dollars. If you generate too few, your firm may be at risk of missing its revenue targets, with potentially disastrous financial implications.  Moreover, you’ll annoy your sales team by not supporting them properly. So, let’s look at a neat way to figure out in advance how many leads your company needs, so you can invest accordingly. 

This easy method uses your sales people’s quotas to back your way into the number of leads required, based on sales productivity per lead.  You will need four numbers:

  1. The average revenue quota per rep, in the period, whether it’s a year, or a quarter, or a month.
  2. The average revenue per order, or per closed deal.
  3. The percent of their quota that the sales people generate naturally, without the help of leads.  This revenue typically flows from repeat sales, from deeper penetration within the accounts, or from referrals.
  4. The conversion rate from qualified lead to sales.

The first three numbers are likely to come from a discussion with sales management, and your finance department.  The last number you probably have on hand, from sales and marketing experience.

Revenue quota per rep $3,000,000
Percentage of quota self-generated 40%
Quota requiring lead support: $3M*(1-.4) $1,800,000
Revenue per order $60,000
Converting leads required ($1.8M/$60K) 30
Conversion rate 20%
Qualified leads required per rep (30/.2) 150

Here’s an example of how to do this calculation, based on a set of hypothetical numbers that might be common in large-enterprise selling environments.  We are saying that each rep is on the hook to deliver $3 million in sales in the period.  As a first calculation, subtract out the percentage of that revenue that the rep can produce without any leads supplied by marketing.  In this example, it’s 40% self-generated, leaving 60%, or $1.8 million, that the rep needs help with from marketing.

We divide that remaining revenue by the average deal size, which is $60,000 in this example, to get the number of closed deals that each rep, on average, needs to complete to deliver on the revenue quota.  In this example, it’s 30 deals.

Finally, we divide the number of deals required by the lead-to-sales conversion rate, which is 20% in this example.  Voila.  Now we know that each reps needs, on average, 150 qualified leads to make quota.

You can also take this to the next step, and calculate the campaign inquiries required by dividing the 150 leads by your inquiry-to-lead conversion rate.  With that, you can plan your campaigns to generate enough inquiries for your pipeline that will convert to a known number of qualified leads, and thereafter to the needed revenue.

So, with this simple math exercise, you can avoid waste and keep your sales reps as productive as they can be.  Do you use another method that you can share?