What is inbound and outbound lead generation?

Lead Generation. It's a hot topic these days but not one that many people understand very well. When asked to explain it, most will say something like "It’s finding new customers." But this isn't quite right because there are multiple types of lead generation strategies - some more effective than others. And when we talk about generating leads for our business or company, we're really talking about two different things: Inbound Lead Gen (IBLG) and Outbound Lead Generation (OLBG).

So today I'd like to take a closer look at both concepts so that you can better understand why each plays such an important role in your overall sales funnel.

First off, let me just state that neither method is inherently good or bad. They simply serve different purposes depending on how much effort you want to put into them. If you have a small budget, then OLBG may be the way to go while if you have a large amount of money to spend on advertising campaigns, you might opt instead for IBLG. Both methods still rely heavily on the internet as their source, however, which makes sense considering how popular social media has become over the last few years. But before we dive any deeper into either side of the coin, let's first examine exactly what they are!

What Is Outbound Lead Time?

Outbound means outside of the building(s), usually referring to cold calls where someone calls potential clients with the goal of converting those prospects into actual paying customers. The length of time required for reaching out to prospective buyers varies greatly from industry to industry, although there are certain general trends that apply across all industries. For example, in B2B services (such as consulting companies) the average response rate typically ranges between 1% and 5%. This means that only around 20 percent of the people who receive your initial email respond and buy your product/service. So even though cold calling is considered the primary form of outbound lead generation, it doesn't mean you should stop trying other options.

On top of that, there are several factors that play into cold call success. First, make sure your message is clear and concise. Prospects tend to ignore emails that aren't easy to read, so avoid using long paragraphs and complex language. Also keep your messages short by focusing on one main point per paragraph. Second, don't forget to include relevant information and stats to back up your claims. Third, set up follow ups with specific dates so that you'll know whether or not you've reached your target audience. Lastly, always remember that timing matters. Don't wait until too late to send out your emails. By doing so, you run the risk of sending your prospect a message after he's already forgotten about you.

How Do You Get Outbound Leads?

The easiest way to find outbound leads is through Google searches. These days, nearly everyone uses search engines to help navigate the world wide web. To capitalize on this fact, you need to optimize your website so that it ranks highly in organic results. Once that happens, you can use various tools online to identify keywords associated with your products and services. Then you can create content based on those words -- articles, blog posts, etc. -- and post it on sites related to those keywords. Your job here is to provide useful, quality content that helps build trust within your customer base. After that, you're ready to begin cold calling.

Another option for getting outbound leads involves hiring telemarketing firms. There are plenty of reputable ones available that specialize specifically in helping businesses connect with existing and potential customers. However, you must choose carefully since it's likely going to cost you somewhere in the range of $100-$500+ dollars per month to hire one of these teams. Plus, you must pay for every single call made regardless of whether or not conversion occurs. That said, you do save yourself the hassle of having to contact potential clients directly.

Finally, another great way to uncover new opportunities is to join local networking groups. Many cities offer numerous events hosted by local entrepreneurs. Some of these meetups focus solely on providing solutions for particular problems, whereas others cover topics relating to everything from food to fitness. Regardless of what type of event you attend, chances are high that you'll come away with valuable contacts. Just make sure you ask questions during conversations, especially if you're interested in learning more about their field. This shows that you care enough to learn more about their work and gives them reason to feel comfortable sharing details about themselves.

How Do You Generate Outbound Leads?

There are actually three basic techniques used to generate outbound leads: Search Engine Optimization (SEO), Social Media Marketing (SMM), and Content Marketing (CM). SEO is essentially optimizing your site so that it appears higher in search engine rankings. SMM refers to creating content that draws attention from your followers, friends, fans, and connections. Finally, CM involves publishing helpful content designed to educate readers about subjects they wouldn't otherwise encounter elsewhere. Each technique works differently, but together they allow you to reach new audiences without spending tons of cash on expensive ads.

For instance, if you own a restaurant, you could write an article on Yelp titled "5 Tips Every New Restaurant Owner Should Know About Food Safety" and submit it to the service for publication. Or perhaps you sell personal training equipment and you decide to start posting videos demonstrating proper lifting techniques on YouTube. Either way, you would then share your link via your social networks. Over time, you would continue to add value to your network by regularly uploading fresh video content. Eventually, you'd attract more viewers who would check out your profile page and click the 'follow' button. Now imagine being able to do all of this without ever leaving your house. Sounds pretty cool, no? Well, now you know the basics behind outbound lead generation! And next week, I'll discuss inbound lead gen strategies so stay tuned!

Inbound

Before I go into further detail on how each works, let me first define both terms.

Inbound means coming at your prospect from inside their organization rather than outside.

Outbound means going after prospects who have already expressed interest in your product or service.

With this said, let's look at each method.

1. Inbound Marketing

This is marketing done through online channels such as websites, blogs, social media sites, etc., which attracts prospective buyers by providing them with information, content, products, services, etc., related to your target audience.

The goal here is to provide value to your potential customer so that they want to learn more about your offering and ultimately purchase or sign up for your product/service.

2. Search Engine Optimization

Search engine optimization (SEO), also known as link building, involves creating backlinks to your website using other websites, blog posts and articles. The idea behind SEO is to increase visibility within search engines so that your site appears higher in the results pages.

Google uses over 200 ranking factors to determine where your site should appear among its competitors.

3. Content Creation

Content creation refers to any written material published on your own site or elsewhere. This could be an article, press release, white paper, infographic, e-book, video, etc. Anything created specifically for the purpose of attracting prospects.

Lead generation is a fundamental part of any business. It's one that can take many forms but all businesses need to have some form of it for their survival. However, with so much noise around how effective lead generation actually is, you may be wondering if there even is such thing as "outbound" or "inbound" lead generation.

To understand this question more clearly, we'll look at both terms and define them before explaining why marketers often confuse these two methods when trying to decide which method will work best for them. So let’s get started!

What is inbound lead generation?

This type of lead generation involves making contact with potential customers through various channels over time. This includes email campaigns sent by sales reps, direct mailers sent from companies, phone calls made by telemarketers, etc. The goal here is to build relationships with people who would potentially buy your products or services and then turn those leads into paying clients.  In other words, inbound lead generation is about building long term relationships with prospective buyers. If done correctly, this process can create repeat sales and help nurture existing relationships until they become profitable.

So now that we know what inbound lead generation entails, let’s talk about its benefits. These include:

Building trust with prospects. By creating consistent messaging across multiple touch points (e.g., emails, social media posts, blog content), you're able to establish yourself as a trusted source of information while also establishing credibility with your audience. Trust helps boost engagement levels on all communication platforms and makes consumers feel comfortable sharing personal data like names and email addresses.

Creating new opportunities. Once someone has given you permission to market to them -- whether via email, website, ad campaign, or whatever else -- you've opened up a whole world of possibilities for generating revenue. You can offer free trials, opt-ins, contests, coupons, special offers, etc. Anything that could possibly generate interest among your target audience is fair game.

Establishing brand awareness. When people hear or see your name associated with something positive, it creates a sense of familiarity and trust. As a result, you start to appear less threatening and therefore easier to approach.

Generating additional leads. Even though you might already have plenty of leads coming in from other sources, inbound marketing methods still bring in fresh leads each month. Since most B2B businesses don't typically rely solely upon cold calling alone to acquire new customers, having another option available gives you better odds of getting the right person at the right time.

What is an inbound lead generation strategy?

As mentioned earlier, the key to successful inbound lead generation strategies is consistency. To achieve this, you must first identify your ideal customer profile and then consistently send relevant messages directly to them using different mediums. For example, once you know exactly whom you want to reach and where you want to reach them, you should always use email to communicate with said individuals.

Another important aspect of inbound lead generation is the use of automation tools. While human interaction is still highly valuable, automating processes saves tons of time and money and allows you to focus on higher value tasks instead. For instance, you can set up automated drip campaigns that automatically deliver prewritten emails every week or fortnightly (or whenever you choose) to ensure that your message reaches the right group of people at the right times. And since not everyone reads emails immediately after receiving them, it's smart to schedule reminders for follow ups too.

Finally, your success with inbound lead generation depends greatly on your ability to convert qualified leads into happy customers. To make sure you're doing everything possible to increase conversion rates, consider implementing landing pages. Landing pages allow you to capture leads' attention quickly and give them just enough information to move things forward. But remember to keep it simple. Don't overwhelm visitors with unnecessary details. Keep the page short, sweet, and easy to navigate. Make sure you ask them for their feedback after visiting to determine whether your efforts were worth it.

And last but not least, never forget that inbound lead generation is only half the battle. Your ultimate goal isn't simply to collect leads, but rather to develop lasting connections between you and your prospects and turn them into loyal customers. After all, most B2B companies operate under Nurture Mode Marketing principles (whereby you continue nurturing your current clients and developing new ones). Therefore, your job isn't complete unless you're actively working towards turning your leads into paying customers.

What is lead generation outbound?

Outbound lead generation refers to the act of sending promotional materials to specific groups of people without asking them to respond. Examples of this include distributing flyers in public places, posting ads online, handing out cards at trade shows, etc.

While outbound lead generation doesn't require nearly as much effort as inbound lead generation does, it's definitely no walk in the park either. For starters, you need to find creative ways to distribute your promo material to large amounts of targeted audiences. Otherwise, you won't be reaching anyone. Also, since many people ignore unsolicited promotions, you should try to avoid spamming others. Instead, craft messages that speak directly to your customers and tell them why they should care about your product or service.

The truth is that most small businesses struggle to gain traction with outbound lead generation because they end up spending way too much time chasing down leads that aren't interested anyway. On top of that, they usually fail to effectively measure results due to poor tracking systems.

But hey, maybe you have the resources needed to pull off great outbound lead generation campaigns. If you do, congratulations! Now go ahead and reap the rewards. Be warned though - this kind of lead generation is very addictive and requires a lot of patience, persistence, and creativity.

Is lead generation inbound or outbound?

Now that we covered the difference between inbound and outbound lead generation, I hope you finally understood why some marketers think that inbound lead generation is synonymous with outbound lead generation. Let me explain...

When marketing professionals say that "lead generation happens outside," they mean that the majority of leads come from third party vendors that specialize in finding leads for you. Whether it's search engine optimization firms or lead generators websites, they provide access to lists of people looking for your type of product/service.

However, you shouldn't assume that the entire process takes place outside. Although you certainly spend a considerable amount of time researching and qualifying prospects, you eventually need to close deals with them and convince them to purchase your stuff. That means you need to engage with your leads in order to qualify them. So yes, it's true that lead generation starts externally and finishes internally. But that doesn't necessarily mean that inbound and outbound lead generations happen separately. They overlap quite a bit, especially if you're running a well-oiled machine.

If you really want to learn more about lead generation, check out our article titled 5 Ways Lead Generation Works Together With SEO & Content Marketing. We discussed several different approaches to lead generation including:

Email marketing

Social media marketing

Content creation

Pay per click advertising

Search engine optimization

Leads have become a hot topic. Everyone wants them. But how can businesses get more of their hands on these lucrative prospects? Should companies focus all their efforts into getting quality leads or should they also be concerned with generating as much quantity as possible?

These questions may seem like two sides of the same coin but there actually isn't any contradiction between the two strategies. In fact, both approaches work hand in hand. The answer lies within your business goals. If you want to sell high value products that people will pay money for, then it makes sense to put resources towards developing a strong network of prospective buyers. However, if you're selling low-value products (or services) where customers are less likely to spend money upfront, then investing effort into cold-calling every Tom, Dick and Harry who walks by might not be worth your time.

So which method works better for you? Let's take a look at some pros and cons from each angle so we can make our decision easier.

If you've never heard of inbound marketing before, let me give you a brief primer on this growing trend. It has been around since the late 1990s when HubSpot was founded. Inbound means attracting potential clients rather than forcing them onto your website. This involves creating content that educates your audience about your brand, product or service. You write articles, blog posts, white papers, webinars, etc., and share this information through social media channels such as Facebook, LinkedIn, Twitter, YouTube, etc. These platforms are used to attract people interested in your industry and help educate them about your company.

On the other side of things, outbound marketing refers to using direct contact methods to reach out to existing clients or potential ones. For example, a marketer could call past clients directly to ask whether they'd consider buying another round of widgets. Or perhaps he or she would send emails asking current clients to fill out a form requesting additional information. They don't necessarily need to buy anything immediately, though. Some marketers use outbound techniques to build relationships first, and only after building trust and rapport does the prospect move down the funnel towards making a purchase.

Both inbound and outbound marketing require similar skillsets. In order to succeed, you'll need to establish yourself online as someone knowledgeable about your field. And once you've done that, you'll need to learn how to engage with your audiences through different mediums. So now I'm going to explain exactly what those mediums are, why they matter and how they tie together.

How do you find leads for outbound sales?

Outbound sales tactics include everything from emailing past clients to sending postcards to mailing lists. There are many reasons why you might choose one over the other depending on your industry, budget and desired results.

For instance, suppose you run a fitness center offering personal training sessions. Rather than spending hours writing personalized letters to every single client, you could instead opt to send generic emails to everyone on your list. Then, after receiving a few replies, you could follow up with those individuals individually to see what type of workout program they prefer. From here, you could either offer them individualized workouts tailored specifically to their needs or develop a group class schedule based on their preferences. Either way, you'll end up with a steady stream of new paying customers without having to invest too much energy into finding them. (And hey, maybe even a free gym membership!)

Or say you own a small manufacturing plant that sells equipment to local construction sites. Instead of contacting hundreds of contractors directly, you could create a simple landing page where they input their name and email address, and click submit. A few days later, you receive a series of automated emails reminding them of upcoming projects and letting them know about special deals related to their specific project requirements. Now imagine if instead of just emailing them, you took a step further and offered to personally visit their site to walk them through various options available for their next job. That's called being "proactive" -- something that most people avoid because of fear of rejection! By doing so, you increase the chances that they'll turn into satisfied long term clients.

Another reason for choosing outbound sales over inbound is the sheer amount of data you can collect. When you target specific groups of people, you can quickly identify trends within your database. Say for example that you noticed that certain types of contractors tend to sign up for outbound campaigns more often than others. With enough data, you might discover that they have higher incomes, are more educated or live closer to the location of your facility. Armed with this knowledge, you can tailor future offers accordingly and reap greater rewards.

What is outbound sales lead generator?

An outbound sales lead generator is a system designed to identify qualified leads through online searches. Typically, you'll enter keywords describing your ideal customer into Google and/or Bing. As soon as you hit Enter, search engines display ads targeted to your query along with links to websites relevant to your keyword(s). Those websites might contain helpful resources, informative blogs, videos, eBooks, whitepapers, etc. Clicking on any link takes you off the search engine's platform and lands you on the actual webpage. At this point, you're no longer searching for information, but browsing websites full of useful material.

When you come across a resource that catches your eye, you can read whatever information it contains, download it, bookmark it, or leave it alone. Sometimes you might even decide to check back again later, especially if you found a valuable article or video. And this process continues until you find a piece of content that piques your interest enough to keep reading. Once you do, you'll notice that the content begins to sound familiar and sounds like it could apply to your situation.

The best part about this strategy is that you aren't forced to interact with anyone right away. You can browse thousands of pages, watch dozens of videos, listen to countless podcasts, etc., and still remain anonymous. After a while, you begin to recognize patterns among the information you encounter. Maybe you start noticing recurring themes or catch phrases appearing frequently throughout the text. Perhaps you begin to realize commonalities between the person posting the content and your own interests or personality traits. Eventually, you'll feel comfortable reaching out to them -- whether it be via phone, Skype chat, email, video conference, etc.

By identifying the correct keywords and following this approach, you can easily convert strangers into leads. Not only that, but you can also gather feedback from your contacts regarding your brand image, pricing structure and general level of expertise. All of this helps you improve your messaging and ultimately close the sale.

How do you generate inbound leads to B2B?

Generating inbound leads is essentially the opposite of what you did above. Here, you want to attract visitors to your website through educational materials and informational content. Your goal is to teach people about your company, its offerings and benefits, and convince them that they should hire you. To achieve this outcome, you must provide clear explanations of your products or services and highlight your qualifications. You can also encourage people to join your email newsletter, participate in surveys, attend seminars or conferences, etc.

To sum it up, inbound marketing focuses mostly on acquiring new customers whereas outbound marketing seeks to retain old ones. Both avenues involve establishing authority and credibility online and engaging with your audience through multiple mediums. Which one you choose depends largely on your goals and the nature of your product or service. If you're looking to acquire new clients, go ahead and explore outbound marketing tools. Otherwise, stick with inbound marketing practices.

It's important to note that although both strategies are effective, neither is superior to the other. Each technique has its advantages and disadvantages, and you shouldn't expect to replace the entire workflow overnight. Even experts struggle to master both simultaneously. Just remember to pick one path and commit yourself fully to it. Only then will you see true success.