• by Irv Brechner , May 22, 2008

Everyone involved in lead generation should read "Why $0.00 is the Future of Business" by Chris Anderson, in the March, 2008 issue of Wired. It has invaluable lessons for those of us who make our livings generating leads online.

The author, Chris Anderson of "The Long Tail" fame, starts off with the story of King Gillette, a frustrated inventor who essentially started the disposable razor blade industry. Of course, his model has been dramatically refined over the years to the point where the razors themselves are disposable. But you get the point: give away the razors and sell the blades.

What King saw, and what the lesson is for us today, is that creating an offer that is truly compelling to consumers will drive a balance of both volume and quality of leads. Whether it's something for free, nearly free, or very low-cost, the numerous examples in this article all have one thing in common: the offer to the consumer was irresistible. And that is the cornerstone of successful lead generation.

As direct marketers who leverage the Internet channel consistently, we must apply this to our everyday practices. For example, we developed an offer for a cosmetics continuity club that was giving $150 worth of cosmetics for $1 plus a small S&H charge. It was a phenomenal success story, because consumers just couldn't say no.

We look at so many of the offers out there -- and "ho hum" comes to mind. If you're developing an offer, spending time and resources to promote it, and carrying it on your network, then you should be spending the necessary time it takes to ensure that the offer is truly compelling. A unique, well planned offer has a much better chance to succeed than the other 90% of "blah" offers that saturate the market.

Now, keep in mind that some offers can be extremely compelling but won't convert very well. One prime example is sweepstakes. People typically enter sweepstakes not because they have any significant interest in a product or service, but rather to win a prize. So while the volume of leads may be great, the quality, and ultimately the conversion rate will be poor.

While hunting for leads, advertisers need to spend the time to find that delicate balance between lead volume and lead quality. We all know that a sweeps entry is going to drive high volume, but what will the backend look like? Fortunately, there are hundreds of great offers floating around that you can add to your swipe file. Save your e-mails, and start compiling a list of what you think are compelling offers. Finally, tailor that knowledge to your specific needs. There is a happy medium for the lead generation space. Advertisers and agencies need to take the time to find it.