B2b Small business owners
Top 5 Reasons B2B Lead Gen Fails (And What You Can Do About It)
John Welch
Owner | IAD Growth
In This Post
1. Your expectations are too high
The first reason is unrealistic expectations. There’s an expectation that B2B lead generation is like a water faucet you can turn on whenever you want.
This is far from reality and it means that many business owners and entrepreneurs are shocked and demoralized when it turns out that generating leads is more expensive and takes longer than they were expecting.
Instead of adapting to reality and changing their expectations, many people jump around different lead generation channels or vendors, never spending enough time or investment to generate real results, and then claiming “lead generation doesn’t work” when they don’t see any results.
2. Many lead generation agencies tell misleading stories
The second reason is false ideas of lead generation from many marketing and lead generation agencies. Over the past couple decades, B2B lead generation has been plagued by many agencies and “gurus” who makes claims that sound great to a business owner or entrepreneur, but never turn into real business results in practice.
You’ll see lots of claims about guaranteeing leads or generating huge volumes of leads in a week or a month. These are deceptive tactics and they don’t represent the reality of B2B lead generation.
But because this marketing is so pervasive, many business owners and entrepreneurs have come to believe that this really is possible with lead generation. So, when they are talking to an honest lead generation agency, they feel like they are being cheated or misled, when, in reality, they are the ones with a false idea of B2B lead generation.
3. You're using B2C lead generation strategies for B2B customers
The third reason is confusing B2C lead generation with B2B lead generation. Almost 100% of the marketing and lead generation advice you see on social media or read in books is based on B2C businesses.
But no one is clearly telling you that, because they’re happy for you to buy their courses and books, even though the information isn’t really for you. Business to consumer businesses like home services, roofing, restaurants, hospitality, and retail function on completely different business models than B2B companies.
Sales are transactional and usually low value and there are much bigger pools of potential customers. B2B lead generation is much more problem driven, the deals are usually much bigger, take longer to close, and there are much fewer potential customers.
Using B2C lead generation advice in B2B lead generation is more likely to push away potential customers and hurt your brand.
4. You don't know your lifetime customer value
The fourth reason is not having a clear lifetime customer value. Most businesses think that lead generation success is measured by how many leads they generate. In their mind more leads equals more success.
In reality this has nothing to do with lead generation success. The only success metric in lead generation is profitable revenue, and more leads does not mean profitable revenue.
In many cases more leads just means more wasted time talking to people who were never going to buy. The only way to know if your lead generation is working is to know if the amount you spend to acquire a customer is profitable.
The only way to know this is to know how much revenue you can likely expect from a new customer. In B2B many people quit lead generation because it “costs too much” but they’ve never actually calculated how much they should be spending.
When you have a clear picture of what a customer is worth to you, you can focus on lead quality, not lead volume. Quality will always matter more than volume in B2B lead generation.
5. You're stopping too soon
The fifth reason is stopping too soon. Many business owners and entrepreneurs want lead generation to happen now. They think they’ll start closing customers in no time at all. This is not how lead generation works.
There is a period of time required to get clarity on targeting and messaging. And even once those are optimized, it can still take months or even years to see consistent results. Lead generation is a time and consistency game. Quitting too soon has kept many business owners from building a successful lead generation channel.
No obligation conversation
Book an introduction conversation
Find a time that works for you on our calendar. In 30 minutes you can tell us what you're looking for and we'll share how we might be able to help.
About Us
Honest and transparent phone call lead generation for B2B companies
IAD Growth provides phone call lead generation services to startups and small busineses. Our primary focus is transparent, sustainable lead generation services that give small businesses and startups the opportunity to generate real business results through a low-risk, no pressure lead generation partnership.
John Welch | Owner
Customer experiences
We have partnered with over 100 small businesses and startups
See what our customers have to say about us.