Sunday, April 2, 2017

Qualified IT Leads – Needing Both Budget And Payment

Knowing the budget of a prospect while qualifying your leads for IT products is a given. However, there is more to it than just knowing that a prospect can afford working with you. You should also consider how that budget is the result of how they intend to pay for your services. Neglecting otherwise could mean your leads would result in deals not worth making (at least not right away).
Cost Of Sales Leads VS Cost Of Payment
If you read this article from Ad Age you will see how even the biggest possible clients you have might have a trick up their sleeve when it comes to paying you (despite having the budget to do so):
“A week after the biggest advertiser in the world — Procter & Gamble — announced it would stretch the time it takes to pay agencies to 75 days, packaged-goods giant Mondelez has gone a step further, instituting 120-day payment terms.
Execs across adland are decrying the practice, saying it verges on unethical. But they also say they feel helpless going up against such big players who wield massive ad budgets and work with dozens of agencies.”
The rest of the article only gives more reason for why your technology sales leads are not just about measuring their cost versus gains from a sale. It should also consider how those gains are going to come in. You do not really need CPA to understand the logic behind the objections. Given the cost of IT lead generation (among other business processes), you should further qualify the budget information in your sales leads based on:
  • How long you can hold out – What good are bigger IT leads if your business cannot sustain itself long enough based on the payment terms it gets from them? Do not just wait for your salespeople to renegotiate once the sales leads have been qualified. Let them know beforehand so that they can offer something in your business’ terms that will help you hold out.
  • How smaller sales leads might help – Sometimes it can be an accumulation of smaller sales leads that could lead to smaller deals but these deals sustain your business more consistently once they are added up. Again, it does not matter whether you are for or against the action reported in the article. It just means that you should really pay attention to the qualified IT that keep your business nurtured via payments.
  • How prospects came to prefer the terms – Lastly, this is all part of understanding the circumstances that lead to a budget. It is not just about how they came to afford your services once the sales leads have been qualified. It is also about how they came to prefer getting the budget via desired payment terms.
It can even go the other way around. What if your prospect states that they have the budget but they presume that paying for advertising is only a one-time transaction? Misinformed prospects are not viable for qualified sales leads either. Generate leads based not just on one-time budgets but how they intend to pay for the whole thing!

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