If you are a business professional who purchases sales leads as a method of generating new business, you are probably undervaluing your leads when considering profit and break even points.

If you make $1000 for every new sale generated by a sales lead, you could pay up to $250 per lead as long as your closing ration was 25% or more and still break even or make a profit. For most business people, when the numbers dip into the unprofitable range they draw the line, and sales leads loose value to them, after all does it make sense to purchase sales leads if you probably will only break even or even loose money?

Is seems obvious that a sales lead is only as valuable as the amount you can make from the sale while considering the closing ratio, but in reality sales leads are far more valuable. You must consider more than just the initial sale when calculating the value of a lead. To calculate the true value of a lead consider the following:

Do any of my leads result in repeat sales? If they do, their value is increased.

How many of my current customers provide me with business referrals? If new sales from leads will also give you referrals, their value is also increased.

Qualified sales leads are worth more in the long-run than many business people realize because the larger you client base is, the more repeat business and referrals your business will have.