Pay Per Lead

Written by Patricia Tunstall
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Pay per lead, or inquiry, is an increasingly popular approach to advertising because of its ability to track and measure results, and to sharply cut the expense of advertising. For start-up and small businesses, per inquiry can mean the difference between advertising only in flyers and the local newspaper, and taking their product or service nationwide. This is an affordable, low-cost solution to the high expenses involved in traditional advertising on radio and TV.

The conventional method of buying airtime from networks costs hundreds of thousands of dollars for prime time spots. Not only are you paying for time placement, but also for the network's expenses for production and programming. The oftener you run your commercial, the more you pay. One of the problems with this method is the guesswork involved--you don't know if your ad is effective or not.

Per Inquiry Advertising Saves Money

Contrast this traditional method with the cost-saving approach of pay per lead. Per inquiry (lead) advertising means you pay only for results--the number of calls or leads that come in responding to your commercial. Regardless of when your ad runs, and regardless of how many times it runs, you are charged just for actual leads.

For radio and television spots, leads can be immediately determined by calls to a toll-free number provided in the ad. On the Internet, leads are more carefully defined as those viewers who fill out a landing page that prequalifies them to enter your website. By paying only for leads, not for airtime or multiple airings, you save big bucks with pay per lead advertising.

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