After working with hundreds of lead companies for nearly two decades, one thing has become very clear. The most successful lead companies don’t stop once the lead is sold and delivered to a buyer. The key is further monetizing your leads even after they sell and one of the best ways to do this is by cross marketing.
What’s a Cross Marketing Campaign
Cross marketing campaigns are simple. After a contact submits a lead, you follow up via email and inform them that you also offer additional products or services that closely relate to their original submission. If you operate in multiple lead verticals, you have a revenue stream just sitting in your lead system. See the image below for some of the most common cross offers.
Cross Marketing by the Numbers
It may be hard to believe that a process so simple can be an actual revenue generator, so let’s break it down by the numbers. Let’s take a common cross offer as an example: auto finance to auto insurance (and vice versa).
-Let's assume that you are generating your own auto finance leads and selling them for an average of $12 each.
-You are generating and selling 100 leads/day for a total daily revenue of $1200.
-Next let's assume you can also sell an auto insurance lead for $10 each.
-Finally, let's say you set up an auto finance to auto insurance cross offer drip campaign.
-If your cross offer is converting at a conservative 5%, you are generating an additional $50 each day. That's an extra $18,250 over the course of a year that you generated by setting up a single campaign.
If you wanted, your process could end here. You could take all additional revenue generated from this campaign and run with it. However, if you take this one step further, you can perpetuate this funnel by allocating a certain percentage of these profits back into your lead generation efforts. This allows you to not only increase your lead volume, but also increase the scale of your cross marketing campaigns.
Cross Marketing by the Numbers (Ping Post)
If you buy and sell leads via ping post, this process can have an even bigger impact by directly influencing your bidding strategy. With cross marketing campaigns, you are generating your own leads rather than carving a profit margin off of a purchased lead. Because of this, your revenue per lead will increase significantly, allowing you to adjust your bidding strategy to increase your volume.
Let’s say on average you’re bidding $8 on an auto insurance lead and selling it for $10, leaving you with a $2 profit with $2 being your average revenue per lead. In this scenario, you have very little wiggle room to stay profitable. However, if you’re also running an auto insurance to auto warranty cross marketing campaign that is converting at a conservative 5% and making you $12/lead, your average revenue per lead increases significantly. This additional revenue is great, but the real opportunity is the ability to adjust your bidding strategy to buy more leads. Because of this additional revenue, you can take a smaller profit margin on each auto insurance lead, allowing you to buy more leads, which will then be inserted into your cross marketing campaigns. Theoretically, you could even take a $0 margin on a lead because it could allow you to significantly increase your volume for the sole purpose of feeding your real profit generator: your cross marketing campaigns.