First off, without having an effective lead generation in place, you cannot reach your marketing goals. Leads are converted into sales, which fuel your overall revenue and goals.
According to a HubSpot survey, over 60% of marketers stated lead generation is their main challenge, while 69% of the main focus was converting leads into sales. Thus, marketers know the importance of lead generation.
What Are Lead Magnets?
A lead magnet is a term used in the marketing industry to describe a service or item given away for free in return for collecting contact information. There are various types of lead magnets, including free samples, trial based subscriptions, newsletter signups, white papers, or free consultations. The lead magnet draws people in, making it easier to convert leads into sales. Marketers may also market other related products or services, known as cross-selling, to increase sales.
Understanding Lead Magnets
Users that provide their name, email address, or other information in return for a free sample or another reward it is a form of lead magnet. The purpose of the exchange may or may not be clearly stated. Because of this, there are some forms of lead magnets that are often criticized due to being deceptive.
Different Types of Lead Magnets
There are various types of lead magnets used, but the most common are guides, reports, and tip sheets unavailable unless the prospect provides certain information the marketer is trying to collect. When the lead magnet uses a free resource or guide in return for an email address, name, or other information, the purpose is clear. Usually, the marketer then uses the contact information for the next part of the sales funnel, where they attempt to push the prospect into making a purchase. Generally, this kind of lead magnet works by encouraging people to gain access to unique content.
For instance, “7 Tips To A Real Estate Career” or “10 Simple Repairs That Increase Property Value”. This would be unique and valuable content that isn’t publicly found but requires joining a mailing list or exchanging information. Although some marketers will repackage existing content found online.
A survey or quiz is another type of lead magnets. They work by encouraging the prospect to fill out the questions, then require an exchange of an email address to provide results. Usually, marketers will use themes to match the type of individuals they seeking. For instance, “What Your Car Says About You?” would work for a car dealership. A person interested in trading or buying a car might take the survey but have to provide their email to get the results. Other types of lead magnets include offering free shipping, discount clubs, and other promotional content for physical products sold online or offline.
As with any marketing and lead generation methods, the different types of lead magnets can be used effectively and responsibly or misused. However, marketers that abuse lead magnets often have much lower conversion rates.