Will Your Voice Broadcast Idea Work?

There is no denying the incredible power of a phone broadcast system. Imagine, you have the ability to send your recorded message to thousands and thousands of phones at the click of your mouse!

But power alone does NOT lead to success.  Here’s how you can judge the possibilities for your own idea. The crucial elements to any campaign’s success, or failure are:

  1. The cost of a “good” lead
  2. The proportion of good leads that “buy”
  3. The profit of each buy

This article will center around item #1 – the cost of a good lead.

As we’ve described in previous lessons, you will always receive some negative calls, along with call transfers that are interested but not qualified.  In either case, those calls are worth $0 to you.

The rest of the calls can be considered good leads. The cost of a good lead depends entirely upon what percentage of calls are good leads. The following table shows the effective cost per good lead, based upon a cost of $6 per call transfer:

% of    Cost per
Good   Good
Leads  Lead
10%    $60
15%    $40
20%    $30
25%    $24
30%    $20
35%    $17
40%    $15

So, if your cost is $30, and 10% of the good leads buy, that means the cost per sale is $300.  If your profit for each sale is only $200, that’s no good.  If your profit is say, $2000, that’s much better.

One problem with this discussion is that we can’t help you with the second and third elements (percentage of buyers, and value of a sale) – these are up to you, and the market you’re in.

So we’ll stick to the first element, the cost per “good lead”. This is going to be determined by the following;

  • The appeal of your message within the market  (most important).
  • Your ability to use effective qualifiers.

If your message does not have much appeal in the market, more of your calls will be negative, and your effective “good lead” cost will rise.

Consider these scenarios:

  1. You’re selling web services to all businesses.
  2. You’re selling web services to a list of realtors.

The broadcast to all businesses will have a lower response rate, and higher lead cost, than the second broadcast, because “web services” hold more appeal among realtors, than among a list of all businesses.

We could go on and on with various scenarios, but I think you get the point. You need to think very carefully about the appeal of your message, what market it should be delivered to, along with your ability to make sales, and the value of each sale.