Pay Per Lead Marketing And Its Benefits

The By Federico Martin  | Categories : misc

Tags : Pay Per Lead Marketing /


Traditionally, marketing contracts involved paying fees upfront to marketers for designing website, employing digital marketing strategies like SEO, Pay per click, etc. The issue with this process was that there was no guarantee of the success of the marketing strategy and hence was at a risk of losing out money. If there are no leads then the whole purpose of building a website and social media campaigns is a lost cause, so a new marketing technique called Pay per lead came into play. Companies like will generate leads and pay money upfront is done away. reports that with pay per lead marketing many companies are successful in eliminating the risk of loss of revenue due to paying in advance. Before looking at the advantages this marketing technique offers, let us look at what is pay per lead marketing.

Pay per lead marketing: This is one of the forms of Cost Per Acquisition or CPA advertising. The difference with this, when compared to others, is that instead of clicks, the acquisition is calculated in the form of a submission of the form, subscription or any other method which can be termed as a lead. In simpler terms, this program is a scheme where a company pays you only when the user signs up that is a lead is generated. Lead will be a person who would have entered necessary information like the contact details or the demographic data and is probably going to install the mobile app or use the service offered by the advertiser.

Advantages of Pay per lead marketing

Quality leads: Using this marketing scheme the advertiser hopes to build a quality user database. As this model involves payment only based on lead generation, it implies that the customer who signed up or installed the app is interested in the product and hence more likelihood of sales. Any advertiser would want more such quality traffic for the website as well as the app.

Accountability: In the traditional marketing schemes as the payment was upfront there was lesser accountability to the advertiser. As companies are relying on the marketers to generate leads, they are more vulnerable if the marketer does a poor marketing job but still got paid. To eliminate this risk of loss, in pay per lead marketing the accountability lies with the marketers as they get paid only if they can generate leads. That can not only act as a motivator but also prove fruitful for the advertiser and help accomplish what goals both set out to achieve.

Better targeting: Lead generation leads to better targeting. When a visitor fills the form, and signs up or subscribes entering personal information about themselves, it not only means that they are potential customers but also means that you have a better customer base with the help of which you can target more customers using other marketing techniques.

Though there are various pricing models for marketing, pay per lead marketing is very popular among those who are looking to promote their product or service. This model has very low risk for advertisers and can also benefit from the quality leads that marketers provide which can lead to potential sales.