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How much new revenue does your lead generation actually generate?

by Erika Cannon
[email protected]

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To determine how much you are spending on lead generation, get these numbers from your sales team:

  1. How many people at which companies in your territory could potentially buy from you?
  2. If you use a third party to find and nurture them, what’s your monthly budget? (if no, B=0)
  3. How many sales do you need to make annually?
  4. How many conversations do you have with each prospect before they buy from you?
  5. What’s your internal cost/hour?
  6. What’s annual new business revenue target?

 (A*1)+(B*12)=X

C*(D*E)=Y

(X+Y)=lead generation cost (Z)

F-Z=new revenue(N)

If N isn’t a big enough number:

  1. Cut B if it’s more than $2000/month.
  2. Cut E if you want to keep B.
  3. Cut D and add B.

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