If you are like most businesspeople, you have a bias towards salesperson generated leads. After all, a salesperson can do many things that marketing, the Internet, or appointment setters cannot. However, if you calculate the true cost of a salesperson generated lead, you may find that their cost is exceptionally high. Worse yet, the weaker sales reps tend to have off-the-chart lead costs. The example spreadsheet below will help you determine the cost of salesperson generated leads and their effectiveness. Cost of lead
| Value of a Lead | ||
| Example 1 | Example 2 | |
| Avg Customer Sales/Year | $ 10,000 | $ 20,000 |
| Average Margin | 50% | 30% |
| Avg Years Customer Stays | 4 | 2 |
| Value of Customer | $ 20,000 | $ 12,000 |
| Leads/Customer | 5/1 | 10/1 |
| Value of a Lead | $ 4,000 | $ 1,200 |
| Cost of Salesperson Generated Leads | ||
| Salesperson 1 | Salesperson 2 | |
| Total New Leads Generated | 50 | 100 |
| Cost/Lead | $ 416.67 | $ 735.29 |
