What is the Difference Between Pay Per Acquisition and Pay Per Lead?
Lead generation programs have changed considerably over the past decade. From companies who charged for ‘filtered’ lists of Internet leads to intelligent data gathering, analysis and different compensation models, businesses now have the option to choose which third party lead generation company to work with based on their budget, lead volume needs and expected results.
As a Pay For Performance company, InboundProspect believes that the Pay Per Acquisition pricing model is the best solution for companies requiring a high volume, scalable lead source. No matter your industry, understanding the difference between Pay Per Lead and Pay Per Acquisition pricing models is essential when considering, which lead generation company to partner with.
What is Pay Per Lead?
Pay Per Lead is the most common compensation model among lead generation companies.
When you decide to work with this type of company you’ll be given a set quote for a guaranteed quantity of leads. For example, if you want your sales team to receive 1,000 direct mail generated live inbound leads, and the lead generation company charges $25 per lead, you would end up paying $25,000 for that lead order.
Depending on what industry you’re in, your Cost Per Lead will vary greatly. For example, national mortgage lenders will pay considerably more per lead, than personal loan lenders because the revenue per loan generated is much higher.
The bottom line for Pay Per Lead is that regardless of the outcome of each lead, you still pay the same amount of money to the lead generation company whether the leads convert or not.
What is Pay Per Acquisition?
Pay Per Acquisition, while not as common as Pay Per Lead, is a revolutionary compensation model that is only provided by world-class lead generation companies such as InboundProspect, who have proven they can generate results.
Pay Per Acquisition is a “Pay For Performance” model where you and the lead generation company agree on a dollar amount that will be paid once a lead actually converts to an acquisition.
A great example of Pay Per Acquisition would be a personal loan lender seeking motivated and qualified personal loan borrowers. The lead generation company would generate live inbound calls via direct mail and transfer the potential borrowers directly to the lender’s call center. If 1,000 calls are generated and 250 of those leads convert to borrowers, then the lender pays the lead generation company a predetermined Cost Per Acquisition or Cost Per Loan for the 250 leads that became personal loan borrowers.
InboundProspect utilizes the Pay Per Acquisition model, which we call Pay For Performance, over the Pay Per Lead model in many cases because it allows companies to utilize their marketing budgets more efficiently and maximize their return on investment. By using advanced direct mail lead generation strategies we are able to build trustworthy, results-based relationships with our client-partners, benefiting both parties.
The Value in Coupling Pay Per Acquisition With Statistical Analysis and Long Term Plans
InboundProspect uses an in depth analysis of each client’s metrics to determine optimal Pay Per Acquisition pricing, and identify the number of qualified direct mail generated live inbound leads are required so that the client can reach their sales goals. If you are looking for scalable, direct mail generated leads on a Pay For Performance basis, don’t hesitate to contact us today.
