Build Up on Cost Efficiency Through Pay Per Performance

March 31, 2012 by  Filed under: Marketing 

Cost efficiency should not be confused with the term cost effective although these two things may sound alike. When we talk about how cost effective a product or service is, it means that the goods that was bought has a lot of benefits that can be received in return after the purchase. In cost efficiency, the term means that the product or service bought was paid with only a minimum monetary amount.

Cost efficient products and services does not necessarily mean that the goods is not of high quality. As a matter of fact, there are tons of goods out there that have the highest quality but does not require an individual to spend an arm and a leg for the purchase.

Take for example outsourcing a lead generation campaign; most campaigns of this nature requires business owners to spend quite a huge amount of money. Most lead generation firms offer the accustomed methods of generating and qualifying leads. With these accustomed methods, the campaign must need a sufficient amount of funding in order to keep it for long periods of time. This does not bode well for businesses that either do not have the necessary monetary resources at the moment or those that are still starting out with their industry.

Lead generation has come a long way and has now alternatives to the accustomed method for generating and qualifying leads. Nowadays, there are more cost efficient plans for lead generation that does not allow the quality of leads to hinder down along with its cost. One such program is called pay per performance.

As the name for this type of lead generation states, pay per performance only lets businesses pay for the amount of leads that they want and whether or not the lead generation sales representative is performing with their work. This allows business owners to make sure of themselves that they will not spend money if the sales representatives of whom they have outsourced their services to is not performing well.

The acquisition of b2b sales leads with pay per performance allows these sales representatives to work even harder into completing their client’s expectations. These representatives are seen to have a more work driven attitude once a business owner takes this program into effect when outsourcing their lead generation services. Basically speaking, if these representatives do not perform then they won’t get paid. That alone is enough to get anybody motivated.

What does this have to do with the service being cost efficient?

To answer this question, let us take a look at an example. If a business were to search for eight leads for their marketing campaign and they have opted for the accustomed method, then they might have to spend thousands of dollars for the entirety of the service. In addition, not all leads are easy to be gathered or qualified; thus there are times that paying for the accustomed method of lead generation can lead to a lot of days, weeks, and months as a worse case scenario.

Following this example, if the business were to opt for initiating their marketing campaign to that of a pay per performance program then they only need to pay for the precise amount of leads that they require. As an added requirement to the lead generation firm, they will not be paid if the sales representatives handling the campaign is not performing their duties well. Hence, if they require eight leads from their campaign and a lead costs around $95 each, then the campaign would roughly cost around $760. This is highly cost efficient rather than spending thousands of dollars on a marketing campaign with sales representatives that might not be doing their job very well.

Sarah Barnes is a telemarketing expert with 11 years experience as a sales leads analyst for small and medium companies. Sarah invites you to visit http://www.121directmarketing.com/ for more information on pre-qualified sales leads and appointments.

Article Source:
http://EzineArticles.com/?expert=Sarah_Barnes

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