Pay Per Lead in B2B Appointment Setting: A Great Way to Lose Money

Posted by Alexia Stath on Fri, Jul 14, 2017 @ 03:42 PM

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I’ve always thought the old adage, “the simplest answer is usually the right one,” is too often applied in areas where it doesn’t belong. Granted, it’s a good rule in a lot of instances. Is that pain in your stomach a flesh eating tapeworm or just a little gas? Is your next door neighbor a serial killer or just shy and socially awkward? It’s hopefully the latter in both cases.

The various facets of business development is unfortunately not as clear cut and B2B appointment setting is no exception. Choosing an appointment setting company that only charges you when they schedule a meeting seems like a great option – it’s just not the right one. 

Pay Per Lead in B2B Appointment Setting: A Great Way to Lose Money

The Theory – Why You Think Paying for Appointments Will Work

  1. A salesperson getting a commission after closing a deal has always been a common and effective practice in most industries. Why should it be any different when a prospector “closes” an appointment?

  2. Paying per appointment minimizes the financial risk taken by your company.

  3. Paying prior to any scheduled meetings is a disincentive – if the prospector is already getting paid they have no vested interest in an end goal that doesn’t affect them.

The Reality – Why You’re Wrong

  1. Not to get too biblical here, but the fruit of their respective labor is too dissimilar for the same reward to be effective. A closer can’t have a rotten sale – sales inherently equal profit - but a prospector can definitely send you a rotten appointment.

  2. Paying per appointment is just as risky, if not more so, than paying a flat rate. Prospectors have no reason to focus on quality, just quanity. So not only could you be paying for poorly qualified leads, but you’ll also be paying for time wasted by your salespeople chasing those leads.

  3. A good appointment setting company should have a vested interest in keeping your business and being a long term partner. If they’re only incentive is getting you as many appointments as possible, then that’s all you’ll get – a lot of appointments, good or bad. You’re losing out on other benefits a truly collaborative business development company would provide – long term lead nurturing, quality list building, and valuable research to name a few.


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Topics: Business Development, Outsourced Sales

About the B2B blog

Welcome to our sphere of thought explosions on all the fun stuff that happens before the big proposal. Professors of Prospecting. Gurus of Lead Generation. Connoisseurs of Qualification. Ninjas of Nurturing. Artists of Appointment Setting. It's how we roll. 

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