Real Leads

The significance between your “pay per performance” vs “pay per lead” model

Now we’ve seen it heard it a million times B2B lead gen companies offering a commission only based service. So I ask how does any reputable organisation stay motivated, train, hold and maintain a robust system and on top actually deliver quality outcomes. We’ve witnessed this scenario time and time again the good majority of high performing Businesses Development Managers whom have trialled and tested the commission only approach only to find they’re being approached by ones competitor and being offered the complete package.

On a pay per performance model accountability, targets, goals and culture are still key elements to ensure the success behind any campaign we at Real Leads have always been clear and transparent to our partners in the event we’re ever behind on numbers we simply review, strategize and apply more time and resources to the project on hand at no extra costs.

If the person or team you have outsourced your new business development are willing to operate on a commission only basis wouldn’t you ask why? if they’re good enough and they make enough noise they will eventually get approached by your competitor and be given the complete package. On the other hand if they lack the experience they will eventually walk and or have their eyes on the market till a more suitable stable opportunity populates.

My point?

Well for starters we’ve yet to see evidence today that the commission only model works nor whether it’s sustainable considering none of our clients would agree and have all their staff sitting on the payroll and well looked after with both a retainer and bonus structure on-top let, meaning if I were to choose “working and operating for free”‘ I’d like to think a stronger portion of the revenue would be presented and a potential stake in the company which may concur to some level the decision making rights which is typically a challenge. We’ve found and 100% of all our partners over the years have agreed that having bankable reputable assets whom demonstrate the ability to negotiate both a retainer and a commission often present greater yield, return on investment, sustainability and quality with deliverables set and expected.

In any business if you look after your team they will look after the brand it’s that simple. Now, our pay per performance model is designed to hold all involved accountable for example whenever we’re behind on numbers or KPI’s we review and commit to a strategy that will supersede any troughs in performance, this could be applying more time energy and resources to the assignment on hand. All businesses hold operational costs and thus includes sales and marketing and there’s no short cut or way around avoiding the overall sales process otherwise and this may sound harsh…. don’t be in business. Our doctors, lawyers and accountants don’t work for free nor does any reputable local sales team.

On another note we also need to consider our conversion rates and balance the equation between generating brand new conversations with prospects vs what’s currently in our pipeline.

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