2 Questions All Solar Companies Should Be Asking Their Solar Lead Providers
Are you buying solar sales leads?
Here are some advanced lead buying questions that you should know about.
1) “Are You Incentivizing Sign Ups?”
Ever see ads like these?
So when you click on it, it tells you that if you want an oppotunity to win the freebie item, you have to sign up for something… like an insurance quote, a free trial to some DVD rental service, etc.
This is called “incentivized sign up” because you are incentivizing someone who has zero knowledge of your company’s product or service.
Does this work? It does… for some marketing campaigns.
In fact, there are multi-billion dollar companies that engage in incentivized sign ups, such as those in movie streaming, ringtones, credit card reporting, insurance, etc.
Usually they are subscription type services that try to get you “hooked” on freebie trials in hopes that they make their money on follow up billing (hence known as “rebill” service).
But there are are 1-time sale products that this works for as well, but they are high priced items… such as cars, houses, mortgages, time shares, (or anything that relates to real estate for that matter), and yes, even solar products.
Now, why would any “lead” generation company engage in this tactic?
Simple: entice more to sign up.
There are lead generation companies where they use internet traffic where getting people to click OUT of their site is close to impossible.
For example, ever play one of those Farmville type games online where you see people spend HOURS on end?
For those kinds of traffic, the sign up offer lives INSIDE the game… and in order for you to level up or receive some special virtual item, you have to either pay them or fill out some offer.
More leads, great, right?
Wrong, NOT always.
Sometimes people are SO engaged with what they were doing that, they forget that they even signed up.
So when a sales rep calls them about their interest.. or if they receive their subscription billing for next month, guess what.. they RUN!
In another words, incentivized leads might result in poorer quality.
But in fact, it can work wonders for higher priced items like solar systems, as long as the freebie item has a HIGH perceived value.
Just look for solar companies offering free iPad offers or something similar with the purchase of a solar system.
Why does it work?
Simple: $500 dollars OFF doesn’t have the same perceived value as a $500 iPad because it has higher SOCIAL value (i.e. not everyone has one so if you have one, you must be “special” in your social circle).
So if you are buying leads, MAKE sure to ask if they are using incentivized.
And if so, conversion rate will be higher, but the lead quality might suffer because all that prospect wanted was that free item.
But, in fact, you might even OFFER it to your customer by letting your lead generation partner use that in the marketing message.
If you do, make sure to deliver that freebie item with the actual purchase… not to mention re-negotiate the rate for these kinds of incentivized leads.
2) “Are You Syndicating My Solar Offer?”
This is how offer syndication works.
Say your solar company works with lead gen company A to deliver you solar leads at $X dollars.
Lead gen company A then goes to lead gen company B to deliver them solar leads at $X/2 dollars…. netting lead gen company A (in profit) $X/2 dollars since company B did all the work and spent all the money.
In the performance marketing industry, this is also known as affiliate marketing because the affiliate is promoting the merchant’s offer (with the merchant here being the lead generation company you directly partnered with and the offer being the sign up.)
Is this bad? Not necessarily, because believe it or not, some of the biggest and most reputable companies in the world engage in affiliate marketing, including eBay, Amazon, Zappos, Walmart, etc etc.
In fact, with offer syndication, you can have insane number of sales leads coming down your sales pipe.
BUT you do have to be away if your lead generation partner is engaging in this tactic because you want to keep your eyes open on
- what MESSAGES are being said about your company by the affiliates
- if the affiliates are engaged in any kind of sign up fraud