Why Lead Generation is Critical To Your SideHustle

The line from the old movie Field of Dreams says “if you build it they will come.”  That may be fine for Hollywood or maybe a new McDonald’s.  But for the rest of us trying to launch a new business, it’s just wishful thinking.  In the real world, you’ve got to use lead generation and traffic building techniques that will result in bringing customers to your business place or website.  Then, you’ve got a chance to show them what you have to offer and hopefully get a sale and turn them into a repeat customer.  Yes, they will come, with sufficient motivation and enticement.

Here are some of the best ways to engage potential customers and convert the contact into a sale.

Lead Generation

Traditional lead generation techniques have been used for decades, and they’re still both popular and effective today.  Most often, they involve planting an idea in the mind of your potential customer that gets them to respond.  You can do this through a variety of means, including

• Newsletters
• Questionnaires and Surveys
• Giveaways

The objective is to gain information about your prospective customer.  That can be used now or in the future to find or create products and services that meet their particular needs.  Of course, the customer isn’t always sure what exactly they need.  So these kinds of lead generation activities involve both collecting and disseminating information.  In the process, the customer grows to trust your information, and looks to you for guidance in making purchasing decisions.

Lead generation is more of a process than an event.  You’re gradually moving a large quantity of potential customers from cold leads, to warm leads, and finally to paying customers.

Host/Beneficiary Relationships

A less frequently used method of growing your customer base is through the use of what’s called a host/beneficiary relationship.  Here’s how that works.

Let’s suppose your new business is women’s fashion beachwear and swimwear.  What might be another business that would have a customer base that is close to your target demographic?  One answer might be a spa, whose customers are mostly women who care about their appearance.

Your first step would be to approach that spa owner and offer to provide, say, 500 beach cover-ups that they can give to their best customers.  Of course, the customers redeem the offer by coming to your store or website.  While those items might have a retail value of $60, they probably only cost you $10.  And when the ladies come to redeem their gifts, they’ll at least be a returning customer, but more likely make additional purchases while there.  What’s the value of 500 paying customers?  To a new business, especially, it’s a lot.

The “R” Word.  Referrals

It’s always been amazing to me how reluctant people are to ask for referrals.  Everyone has friends and relatives.  And all of them are potential customers.  If you just provided Ashley with an awesome product or service, don’t her friends and relatives deserve to know about it also?

Referrals are easiest to ask for, and get, right at the time of the sale.  A simple “would you mind helping me out by providing an introduction to two or three people you know who might like what we do here?”  You can even offer an incentive such as 10% off their next purchase.

Alternatively, you can use prepared new customer promotional cards that offer that same discount and simply ask your current customer to pass them on to other people they know.  It’s a more passive approach, but it’s better than not taking advantage of referral potential at all.

About Roast Duck

There’s an old adage about roast duck.  It says that if you sit with your arms folded, legs crossed, and mouth open, you’re going to have a long wait for a roast duck to fly in.   The same is true of building your business.  The customers are out there, for sure.  But you’re going to have to go out hunting and gathering to enjoy the rewards of your efforts.