Lead Generation: Everything You Need To Know

Lead generation means finding people who want to buy your products. First, you grab their attention. Then, you collect information that helps you understand if they're interested — if they are, they may end up making a purchase.

A lead is anyone who shows interest in your company, and a prospect is a lead that looks promising. Prospects match your ideal customer profile and seem more likely to buy from you. 

All prospects are leads, but not all leads turn into prospects. Understanding this difference helps you focus on the right people. It also saves you time and effort.

Lead generation is key for making your business grow. With new leads, you can find new customers. And with new customers, your business can grow.

Lead generation is also a major part of the sales funnel. The sales funnel is a way to think about your customer's path — it's like turning someone who knows nothing about your business into a happy customer, and lead generation is the first step. 

At the top of the funnel, you gather as many leads as possible. Then, you guide those leads through the funnel, teaching them about your products and why they should buy from you. Lead generation starts the journey for a lead to become a buying customer.

Let's dive deeper into different types of leads. Every shopper has a different intention — some customers are browsing, others are comparing prices, and a few have their wallets out, ready to make a sale. 

In business, we categorize these potential buyers as different types of leads. Understanding these categories helps your approach, dictating how you communicate with each group.

MQLs (Marketing Qualified Leads)

Someone looking at your site because you caught their eye is an MQL. They've interacted with your marketing efforts, but have yet to be ready to buy. They're curious, and exploring what you offer.

To get a lead in this group to ultimately make a purchase, creative content can be helpful. More information can serve to answer their questions and educate them more about your product. 

SQLs (Sales Qualified Leads)

SQLs are the people who have moved past casual browsing. They're examining your products, and they may be asking about specific features or pricing. 

SQLs have shown a clear interest, and might be just one step away from purchasing. This signals that they're ripe for a direct sales approach.

Product-Qualified Leads

This type of lead involves people who have tried your product through a free trial and liked it. They've "tried on" what you're offering and are contemplating the purchase. This group may need a gentle push, like a limited-time offer or a follow-up, to convert their trial into a sale.

Service-Qualified Leads

These people are using your service, and they tell your team they want to upgrade or add more to what they’re already getting — they can't get enough.

Each type of lead needs a different approach. MQLs need more information to get them excited, while SQLs might be ready for a chat about buying. Product-qualified leads might need a nudge to purchase the full version, and service-qualified leads might need to know what else you offer. Knowing what kind of lead you're talking to can ensure you're saying the right thing to the right person.

Creating leads is the surest way to attract customers. Here are some lead generation examples and strategies:

Content Marketing

Content marketing includes different pieces of content, like blogs, videos, or podcasts. With the right content marketing efforts, people who come to your site to learn might end up leaving their contact info for more, or they might continuously seek out more of your content. 

A blog post about "10 Ways to Take a Photo," for example can attract photographers, while a video about a happy customer using your product helps create interest in others potential customers. This may allow them to watch more videos or subscribe to your brand's YouTube channel.

Email Marketing

With email marketing, you email people on your list with news, tips, or deals, hoping they'll bite and visit your site. 

Someone signing up for tips or insights into your product is a lead you've caught through email. If a customer opens an email and clicks a link that redirects to your website, it is a direct lead. This strategy can even be implemented using email automation, which takes some work off of your plate and allows you to focus your time on other efforts.

Social Media Marketing

Social media marketing makes use of platforms like Instagram or Twitter to talk about what you offer in order to create hype. I use my social platforms to call attention back to Founder OS, making sure my audience on social media is helping to fuel my overall business growth. Take this post, for example:

This post invites users to explore Founder OS and gives them a brief introduction to what Founder OS is all about. 

A free marketing feature of social media is reposting — customers can repost your posts onto other pages, especially if they find your content exciting or interesting enough. If you can generate enough appeal, your audience will grow and start doing the work for you. 

SEO (Search Engine Optimization)

Search engines love websites that are easy to understand — they need to be full of useful information. 

SEO ensures that your website pops up first when people type in a query. It's one of the surest ways to gain organic traffic to your website. When a user finds you in the search results and clicks through to your site, that's a lead. 

PPC (Pay-Per-Click)

PPC ads mean you only pay when someone takes the action to check out your product. When they click on your ad, that's a lead showing real interest, and you pay for that click. It's like a user saying, "Hey, I'm interested in learning more!"

This strategy is valuable — it targets people who are already searching for what you offer. And the best part? You control the budget. You decide how much you're willing to pay for each click. This helps manage costs while attracting leads.

PPC also lets you pick where your ad shows up. This can be on specific websites or in search results for certain keywords. 

Plus, PPC lets you see how many people click on your ads. And you can see how many are taking action. This helps you understand what's working. You can tweak your ads to attract even more interested folks.

Event Marketing

This consists of hosting or joining events, like webinars or workshops. Those who sign up or attend show interest in what you have to say or offer. A webinar on your product can ask for registration. To register, customers will enter their information. This method can gather lots of leads.

For example, this post on Twitter lets users know about an upcoming live workshop I’m hosting, inviting them to sign up:

Hosting events is a great way to get your users involved in more of a “special” offering, and for those who attend, it’s a great way to prove your value to them.

Each strategy has its own way of attracting leads. Knowing which mix of lead generation techniques to use is key to a successful campaign. 

Lead generation is a journey that moves a stranger to become a happy customer. Here’s what the complete process looks like:

Attract

First, grab the prospect’s attention. Use blogs, ads, or social media to get people to notice you. This is how strangers start to learn about what you offer.

Convert

Next, turn visitors into leads. Ask them to sign up for an email newsletter list or download a guide. 

A newsletter subscription is free and provides value — and now you have their contact info. My Founder OS newsletter goes out every Saturday, giving my audience insights into the entrepreneur space and tips for business growth. My newsletter keeps my consumers engaged and serves as a way for me to continuously communicate with them.

Close

Here, you make the sale. Use emails or calls to convince leads to buy, and keep your product on top of mind. It's all about showing how your product solves their problem.

Delight

Keep customers happy. Give great service and check in after they buy — happy customers might buy more or tell friends about you.

Each step moves leads closer to buying. First, you catch their eye. Then, you get to talk to them. Next, you sell. Finally, you make sure they're happy. This process helps find new customers and keep them around.

Lead generation tools help find and manage potential customers. Here's a quick look at three top tools:

1. HubSpot

HubSpot is a comprehensive, all-in-one tool that helps with marketing, sales, and service. HubSpot lets you track leads, run email campaigns, and follow up with customers. It also provides a platform to create blogs and track SEO, making it a great way to monitor your progress with leads. 

2. ConvertKit

ConvertKit is one of my favorite tools — it offers customizable landing pages and email templates to help you build the perfect email newsletter. With ConvertKit, you can also get recommendations and advice from influential people in your specific niche, helping you effectively grow your audience (and your business).

With third-party integrations, email automations, and monetization opportunities, ConvertKit is a hub of opportunities for lead generation. 

3. Google Ads

This tool allows you to put ads on Google and its partner sites. You can target specific keywords, meaning your ads show up for people already interested in what you offer. 

Google Ads also tracks how well your ads are doing, thanks to a metrics tracker. This allows you to create a strategy to keep what works and get rid of what doesn’t.

These tools automate finding and keeping track of leads, making marketing more efficient.

Checking key numbers and metrics, known as key performance indicators (KPIs) is crucial to see if your lead generation is working. 

Here are a few important KPIs to watch:

• Conversion Rate: This tells you what percent of visitors turn into leads. A high rate means your attract step is doing well. A low score would mean your lead generation plan needs revising.

• Time to Conversion: This shows how long someone can go from a visitor to a lead. Faster is usually better, showing your process is efficient.

• Cost Per Lead: This metric calculates how much you spend to get one lead. Keeping CPL low means you're getting more value for your money.

To improve your lead generation, track these KPIs. See where you're strong and where you can get better. Adjust your strategies based on what these numbers tell you. You can make smarter decisions and get more leads without wasting resources.

Lead generation is vital for any business looking to grow. It’s about turning strangers into buyers. This is the process: attract, convert, close, and delight. 

Remember, there are different types of lead generation. Marketing qualified leads (MQLs) are at the top of the funnel, while sales qualified leads (SQLs) are closer to buying.

Take a moment to assess your current lead generation approach. Are there areas you can improve? It’s time to try new techniques or sharpen the ones you already use.

Lead generation is key to keeping your business moving forward. Keep experimenting — refining your strategies will help you find what works best for your audience. If you’re ready to level up your business strategies, get started with Founder OS.