Generating leads and winning new customers online is hard.
But it doesn’t have to be…
You see, without leads, there’s no customers, and without customers, there’s no revenue.
So what can you do to easily increase both?
There are many tried and tested ways to generate more qualified leads.
I’m going to share one of my favorites with you shortly.
It’s something that can 4x your revenue without needing to drive any more traffic to your site.
I’ll show you exactly how this works in a minute.
Everybody loves getting something for nothing
When was the last time you were given something for free? Remember how good that felt?
Especially when it’s something valuable.
This is the concept of a lead magnet.
You giving away something valuable to your ideal client, in exchange for contact information like their email address.
Lead magnets can include trial subscriptions, courses, templates, samples, white papers, e-newsletters, and free consultations.
I’m going to share with you the 3 most effective lead magnets + real-world examples shortly.
But not until we cover this important concept…
The best lead magnets mirror the product or service you’re offering
Imagine you’re a property investment consultant. Your ideal customer is someone who wants to invest a minimum of $200,000 in property in the next 12 months.
Lead magnets work best when you give a little taste of your paid offer for free, in this case, your investment knowledge.
Creating a guide on ‘The biggest things to look out for when investing over $200,000 in property in the next year’ and promoting it to your target market would generate an email list of your ideal prospects who’d self-qualify by downloading.
They’d self-qualify because it’s unlikely you’d download that if:
- You didn’t have $200K to invest
- And you didn’t invest in property
So why should you use a lead magnet?
Introducing a lead magnet to your funnel can 4x your revenue. I’ll show you exactly how shortly.
But first, what are some of the other benefits?
1. Grow your email list with a self-qualified, loyal audience
The more targeted your lead magnet is, the more qualified your leads will be, which is why getting the offer right is key.
Let’s revisit the example above again…
This lead magnet wouldn’t be as effective if you created a guide about the potential returns from property investing. It’s too broad and the audience would be less qualified.
2. Increases brand awareness
By giving content away for free you’re positioning yourself as the expert.
That means you’ll be the first call for prospects when they’re ready to buy if they’ve already enjoyed results from your advice.
3. The power of reciprocity
Reciprocity is a powerful force of influence.
Check out Cialdini’s book ‘Influence, the Psychology of Persuasion” for a lesson in behavioral psychology.
By giving away something valuable for free you’re priming your audience to give something back. Your prospects will be more willing to trust you and ultimately will be more likely to buy from you.
4. You can use it to gain audience insights
If you use a lead magnet such as a quiz, you can learn more about your ideal prospects than you would through any other method.
This can help to lead sales conversations further down the line and in turn increase your sales conversion rate.
Using these insights, you can later adapt the services you offer to this specific customer to meet their exact needs, which again will help with sales conversion
How to 4x your revenue using lead magnets (workings out included)
I told you that lead magnets have the power to 4x your revenue, now I’m going to show you how…
Funnels are the journey you take your customers on to make a purchase.
Lead magnets are a leverage point within that funnel.
Using an effective lead magnet at the start, not only increases the number of prospects entering your funnel but also increases conversion rates further down.
When you get the offer right, those entering the funnel are more qualified meaning they’re more likely to purchase.
Here’s a quick example…
Say you were making $200K/yr selling info products broken down as
- $16.7K per month
- Which is $540/day
- Which is 4 customers @ $135/ea
- Which is 285 daily web visitors at 1.4% conversion
Now say you add a lead magnet into this:
- 285 visits to a landing page at 40% conversion (this is the benchmark conversion rate you should be aiming for with a lead magnet)
- 114 qualified leads
- 11 customers @ 10% conversion (this is the benchmark conversion for leads to customers when they’re qualified)
- $1485/day – $46K/mth – $500K/yr
+ the leads on your email list will buy from you in the future without needing to drive any more traffic.
It’s a no-brainer.
But before you create your own, here are 3 ideas of great lead magnets
Here are three different types of lead magnets, each of which is highly effective in driving people to convert.
Templates make great lead magnets as they’re highly actionable.
Anyone of your ideal clients should be able to take a template and use it immediately.
It does the hard work for them.
Jordan Parker’s newsletter framework is a great example of a template lead magnet for these reasons:
- He’s offering the template for free
- You’re getting 3 which feels extra valuable.
- There’s social proof with ratings from other prospects
- There are more proof points as well with real-data outcomes of his achievements using this format.
2. Free courses
Free courses also make great lead magnets as your ideal client immediately feels as though they’re receiving something extremely valuable.
- Help with your hustle include social proof right at the top of their offer introducing a named customer. Having a customer quote with positive feedback leads you to trust the offer and makes it easier to convert.
- 5 days feels valuable as you feel you’ll be receiving lots of content just in exchange for your email.
- The beauty of this lies in its simplicity. Choosing to have very little information on the page creates intrigue for the prospect. They want to submit their details if only to find out what the course involves
- Even the opt-out text works hard to assist with that conversion.
Guides also make great lead magnets because they’re easy for your ideal clients to engage with. Unlike templates or courses, there’s no huge commitment on their side to get the knowledge they’re after.
The Solopreneur toolbox guide is a fantastic example of a free guide lead magnet.
- The image at the top leads you to feel you’re receiving a weighty physical guide and not just a download.
- Using common objections as to why prospects might be put off converting and using these as a q&a works incredibly well.
I’d recommend downloading each of these and making notes on how they’re structured.
This will help you when creating your own.
See just how much value is given in exchange for your email.
|Before you build your lead magnet ask yourself: |
1. Ask yourself – is this worth someone exchanging their email address for?
2. Does this align directly with the product/service I’m offering?
3. Is the offer specific enough that anyone who downloads will be qualified?
Hope these ideas help. Until next time,
– Dan Steinhart, CPA
P.S. Lead Magnets are one of a few key leverage points that can unlock revenue growth in your business.