What are Lead Generation and How it Can Be Profitable

In online marketing, lead generation is generally the initiating of consumer inquiry or interest into services or products of an organization. Leads can also be generated for specific purposes like e-newsletter mailing list acquisition, targeted market research, or for sales generation. For example, there is a lead generation company called reactivated who offers a web-based application that is used by marketers and advertisers. The web application allows a company’s advertisers and marketers to create responsive web pages and make use of an auto-responder to build and maintain these pages for a fee. The responder provides this service automatically, after which, the advertiser submits an advertisement and other relevant information to the reactivated system and gets a response almost immediately.

what is lead generation


The concept of lead generation has changed a lot in the recent times because of the advent of SEO and digital marketing. SEO helps you gain visibility on the Internet and also enables you to obtain leads through various methods like PPC campaigns, web site listing, etc. It helps you to have a high ranking position in the search engine result pages (SERP’s). SEO is one of the most cost-effective ways of gaining visibility on the Internet.


Lead generation through PPC campaigns happens when an advertiser pays an Internet search engine to host a paid advertising campaign. The search engine in turn, serves up the advertisements to those people who are searching for a product or service that is provided by the advertiser. These results form the inbound marketing. Paid advertising is more effective than the organic way of getting leads. Organic search results take a longer time before one gets results, and they are sometimes not the desired results.

On the flip side, there is a lead generation strategy called inbound selling or SEM. This type of strategy helps in bringing in new leads through various online sales techniques. It includes pay per click (PPC), pay per play (PPP) and other paid promotions such as viral video campaigns. Various techniques are used to generate leads and convert them into sales.

On a bigger scale, a good number of companies are engaged in lead generation efforts through telemarketing and mass mailing. Telemarketing involves sending unsolicited mails to promote products and services. Mass mailing campaigns are sent to all addresses in a specific geographical area. Both these campaigns yield results but the former has a far better return on investment. In this case, the company spends less on advertising and it yields good ROI because of the low costs involved.

Social media marketing campaigns are among the most effective methods in driving traffic to your website. They allow you to connect with the target audience and give them an opportunity to engage with your brand. This helps in generating leads more effectively. SMM also helps to segment the target audience according to age, location and even their buying preferences. In this case, one can easily identify those who may be interested in your product and pursue them further for conversion into actual sales.