1. Home
  2. Business & Finance
  3. Marketing

Lead Generation: A Dying or Thriving Business?

By Laura Lake, About.com

Recently I came across a blog post by Jermey Liew of LightSpeed that was reviewing predictions of lead generation for 2007. While his post was concise and ultimately we agree, I must challenge those he quoted who state that in 2007 lead generation is dead.

Lead generation is one of the marketing models online that will always work. Why? We use the internet for research. We research rates, we research products, and we research information.

When we need something we like for people to come to us, instantaneously. We as a society have an instant gratification mindset. That's why we get upset if it takes us ten minutes to get through a drive-through at our local restaurant. We want what we need now, whether that be a product, a service, or information.

In 2007 lead generation will continue to grow. Businesses that are lead generation oriented will need to get more sophisticated in technology to avoid fraudulent leads. They will need to fine-tune their marketing message as well as their methods to increase the conversion of those leads. Many companies are already doing this and seeing tremendous results because of it.

Lead arbitrage will also go through it's share of changes. Companies will become more select on who can market their clients to ensure that converting leads are gathered and sent on. While volume will remain important quality will be the standard when it comes to judging performance and selecting a lead generation company.

You will also see an increase in companies that specialize in lead generation moving one step further by not only providing leads to clients, but also providing training on how to handle and close the leads. When this isn't possible you will see them providing call center solutions that will handle these leads for the client. In return the consumer is receiving what they want - instant gratification and answers to their inquiry.

Lead generation will continue to grow and businesses will continue to perfect the model. In 2007 it will experience the most growth in the B2B sector. Businesses looking for opportunities to market to other business, but needing help in finding their prospects and eventually closing the sale. In return profits increase and the concept of lead generation becomes a viable and cost-effective solution for businesses that market to other businesses on a cost-per-lead basis.

What will die in 2007? Lead generation businesses that waste their clients time with fraudulent leads and leads that do not convert. It's separating the wheat from the shaft as some would say. Companies that can perform and provide quality leads to their clients will be sought out by previous clients of companies that couldn't perform.

Lead generation is not going anywhere. It will however be under a magnifying glass when it comes to performance and conversion.

Explore Marketing
About.com Special Features

Start your new business on the right foot with these helpful tips. More >

Easy steps to take control of your credit card debt. More >

  1. Home
  2. Business & Finance
  3. Marketing
  4. Marketing Methods
  5. Lead Generation: A Dying or Thriving Business?>

©2009 About.com, a part of The New York Times Company.

All rights reserved.