Cost Effective Methods To Generate Leads And Grow Your Small Business
Getting new customer leads is a problem that everyone faces, both new and existing businesses are trying to tackle this. They may have an excellent product or service, but don’t have the right marketing strategy and methods in place. There are several different ways to generate and engage leads. The most noteworthy methods include word-of-mouth referrals, business alliances, networking, advertising, public relations, social media to some extent and then good old direct sales (i.e., cold calling). The method that’s most suitable for your business will hinge on the size of your company as well as your industry, budget, and specific goals. Let’s analyze the two factors that are most significant to small businesses in choosing a starting point: time and cost. Which method will take the least amount of time and also cost the least in the short term?
1. Pay-per-click advertising campaigns
The fastest method by far will be advertising through Google in a pay-per-click (PPC) campaign. With the Google Adwords platform, advertisers can market to customers through sponsored text listings that are activated by targeted keywords. For instance, a mobile application development company can target a phrase such as, “best mobile application development companies in Toronto.” When searches for this keyword phrase are entered, the web development company’s ad can appear below the search box (paid) or to the right of the organic listings (non-paid). The seeker can then click on the developer’s ad which will result in a new visitor to the website. Developers will then be charged per click and hence the name pay per click.
The uncommon keyword phrases and the less recurrently searched words are typically the cheapest as there are fewer advertisers contending for them. The disadvantage to PPC campaigns is that they often do not generate profit immediately. Most advertisers need to learn and optimize their campaigns based on consumer behaviors and industry trends, which will, in turn, increase their return on investment.
2. Thought leadership and Networking
Most companies can improve their online and offline reputations through thought-leadership and networking work. What does that mean? Examples include giving speeches at conferences, conducting a webinar or even publishing relevant articles. Whether you know it or not, you’re likely proficient in your profession, even if you’re not a doctor, a lawyer or an accountant, and you can certainly create a point of differentiation by joining and leading the conversation.
The return on investment for thought leadership may not be measurable at first, but over time, it will be if done successfully. In this specific case, it would make sense to speak at an event designed to help early-stage entrepreneurs run their businesses. A good place to start is often the local chamber of commerce or a small-business development center. Other places you could look into include business incubators and small-business conferences. This method won’t end up costing anything your only investment will be time.
3. Free public relations
Many businesses are familiar with paying public-relations firms thousands of dollars a month and not necessarily being able to measure their return. Often leading to an unsatisfying and expensive experience. A good first step is to subscribe to one of the email distribution lists that connect writers and publishers to experts and companies for sources to use in their articles. PR guru Peter Shankman launched Help a Reporter Out (HARO) and is considered by many the best-in-class of these new free distribution lists. A successful pitch will take some trial and error, but it’s certainly more cost effective than hiring a PR firm. Again your necessary investment here is time and not capital.
A good way forward would be to understand your consumers and create a mix of the above processes. Online advertising is a great starting point, a word of caution, though, make sure you look at your daily expenses and budget your campaign well.
Written by Ryan Himmel
Originally posted on entrepreneur.com