These are the people that are interested to know more about what you have to offer on a monthly basis or any period you find relevant. These leads might be interested in your offer but not ready to buy. Within any given market, a rule of thumb is that only 3% of that market will have people interested by your services. Let’s call this your target market. And only 20% of your target market is ready
to buy. Having this in mind forces you to select a market with a size that matches the number of clients you wish to acquire. If the market can be broad, your target market should be specific.
Let’s take the example of the residential property market in the UK. A broad market will be to consider the percentage of a city’s dwellings owned by private landlords and rented out. A specific market would be to identify the private landlords with 5 rented properties owned as multi-units purchased with BTL mortgage. As per a study of the Council of Mortgage Lenders, Landlords with one or more BTL mortgage tend to have larger and more valuable portfolios than non-BTL landlords
. Given a choice, would you like to have any client or focus on those that have the most valuable portfolios? They might be hard to get, but focussing on their needs and wants you will soon know how to attract them.
To chase leads you need to invest in marketing to these leads. But you don’t need to chase leads to acquire clients. You can market to your existing clients and generate leads. In this case you deal with leads that are directly ready to buy. So you save time and money. You still invest in marketing strategies but they are not the same as the one you use to chase leads. Here your challenge is not to get a total stranger to warm up to your offer and sign, but it’s to convert an existing client into an advocate so that he gets referrals for you.
Last thing about leads, when you chase them, you use either an outbound or inbound marketing strategy as we discussed earlier (referred as hunting or attracting). The former is more direct, and experienced as aggressive, as you directly get in touch with strangers to convince them on the spot you have something they should pay attention to. The later is indirect, as you attract strangers into discussing your offer.
Outbound strategies may seem straightforward and simple to execute. What does it take to make a phone call to a property owner? But in fact they demand a certain mindset and great sales skills to go through rejection and warm up the leads on the spot.
Inbound strategies may seem tedious as they require time to build content that will act as magnet and bring warm leads.
The very big difference between the two is the level of rejection you need to put up with. With inbound marketing strategies you talk to your leads when they decide they want to talk to you. You can still face rejection when you attempt to convert the leads into clients. But at least you learn so much in the process that you can quickly improve at converting.
With outbound marketing you need to make rejection a habit. One way to turn this around is to understand the law of numbers and focus on counting, that is to accept the rejection as normal and motivate yourself contacting a very large number of potential leads so as to ensure you will get a quasi certain number of warm leads that can be converted.