Top 3 Reasons Why Partnering with Lead Generation Company Works

Let me tell you a little story about how I even FOUND out about lead generation.

When I was 24, like any single guy in his early 20’s, I used to go to night clubs… a LOT.

One time, I came home drunk.. and started “what the F am i doing with my life?

I felt so pathetic… and in my drunken stupor, I turned on TV and came across this informercial by Tony Robbins.

I’m sure you’ve heard of it: “LIVE WITH PASSION.”


Of course, one of the things that really struck me was that financial well-being is much a part of happiness as, say, physical well-being.

And that struck me hard, and went one this journey of entrepreneurship.


My first real attempt: Vending business

Of course, being the sucker newbie virgin entrepreneur that I was, i bought into every stinkin’ hype about some “business opportunity”.

My first pitfall? Vending business.

Their sales pitch: “Buy our machines, get them placed, and make $300/mo per MACHINE!!!!”


Of course, my mind was racing.. “holy cow $300/mo doing nothing? I just need 10 machines and i’m SET”. (Remember, i was 24 with no kids or mortgage.)

Or at least that was the theory.

So I went out and bought 20 machines on my credit card with zero experience.

They say sucker is born every minute… but hey, you’re ONLY a sucker if you quit! (According to Tony Robbins.)


Ugh… Cold Calling 

Of course, you need to place these machines at locations where there are PEOPLE.

So began my days as a salesman: doing everything from cold calling, mass mailing, and even “tricking” people into thinking that they somehow asked for my vending machine inside their laundromat, pool halls, etc.

But, I was a newbie salesman… and so, i got worn down pretty fast cold calling random places, hoping that someone would say yes.

This was MY closing ratio  (and you know, to be good at sales/marketing, you’ve GOT to know your numbers so you can price your lead correctly):

Cold call random 100 businesses

Talk to 10 in person. 3 might be interested (with revenue sharing).

Place 1 machine

This took literally 8-10 days (I’m a slow cold caller), with cold calling taking up 90% of the time.

In another words, it took 10 days to place 1 MACHINE.

It would take me 200 days to place all 20.


Angel in disguise: Lead generation lady out of Texas

I was worn down from so many damn rejections.. and I really really did not want to do any more cold calls.

I was sick of it… and ready to quit.

Then I heard about this lead generation lady out of Texas that will place my machines FOR me.. at cost of $25 per location.

In another words, she’ll cold-call for me and give me the list of businesses that will let me place my machines.




To make the story short, I made a decent living out of doing vending business (and eventually sold the business off… albeit a little business).

What did I learn?


1. Vending business sucks.

Well, ok.. it sucked for ME.

I didn’t make $300/mo/machine.. it was more like $5-20/mo/machine.

I lived in NYC at the time. If you skimp on the candy the machine dispenses, people will either use the machine as a punching bag or down right steal the damn thing (it weighed less than 30 lbs.)


2. Buying leads is insanely sensitive: it’s a partnership based on trust 

This lady, who I just read about on some forum, gave me lots of crap locations.

How did she find them?

Who knows.

I basically had to move my machines 3-5 times before I ‘accepted’ the location.

And every time I had to move them, she got paid. I didn’t.

But I do admit, it worked.



Lead Generation Works, Here’s Why


Here’s WHY a partnership with lead generation company can work for you.


1) Online Lead Generation is Costly and Complicated

Do you clean your office? Probably not. You outsource.

Do you scrub the toilets in your office? Probably not.

Do you do HR, payroll, and taxes in your office? Probably not.

Why do you outsource?


Simple: you either save time or money by letting others do what they’re good at.


1. Online lead generation is complicated, and i’ve seen lots of companies make very costly mistakes…

2. Online lead generation can get real expensive if you are doing it yourself.


There are plenty of DIY (do it yourself) marketing automation type companies that evangelize that you should be doing it yourself.. but remember this

– if you are not paying for it with money, you are paying for it with time… not to mention all the management headache that comes with hiring, motivating, training, etc.

– they are trying to sell you their software.. once you’re hooked… you are STUCK.




2) You are accelerating through the funnel

If you aren’t familiar with the buying cycle, the picture above shows you exactly what goes on in the mind of a buyer when they are exposed to your company’s product or service.

If you draw this out against time for certain industries (like solar, insurance, college , people spend about 85-95% of the time in the awareness and consideration phase.


So if you are buying leads, you are basically “cherry” picking the people that have already gone through those two time consuming phases.

Awesome huh?

According to Wikipedia’s entry on Online Lead Generation (link)

PPA* pricing models are more advertiser-friendly as they a less susceptible to fraud and bots. With pay per click providers can commit fraud by manufacturing leads or blending one source of lead with another (example: search-driven leads with co-registration leads) to generate higher profits for themselves.

(*PPA = Price per action, a.k.a. price per lead)


In another words,  lead generation company removes the risk of advertisers trying to directly buy traffic from a traffic source (like a search engine, for example.)




3) Do What You’re Good At


You’ve heard this many times: focus on your strengths.

If online marketing/lead generation is NOT your company’s forte, partner with someone who is.


Take these for-profit schools like DeVry and University of Phoenix, for instance.

They spend HUNDREDS of millions of dollars advertising their school programs, yet they STILL buy leads.

Why? Because it WORKS.



Why is this so?

You can call it “marketing” … or “strategic partnership”… or whatever MBA term you use.. but it’s quite simple.

Basic karma: more people promoting you = more business for you.


The business focuses (as it should) on what it’s good at: serving its customers..

Lead generation companies focus on what it’s good at: generating demand and hence, leads.




TaeWoo is founder of Solar One Media, a solar lead generation company. With 10+ years of experience in internet marketing, web development, and online advertising, TaeWoo brings his expertise and pioneering spirit to solar lead generation.

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