"How many leads should I buy?" is really a question about how many customers you want. Work backwards from that, and the number of leads falls out of a bit of simple math.
The formula
Leads needed = customers wanted ÷ (connect rate × meeting rate × close rate)
- Connect rate: the share of businesses you actually get a conversation with (by phone or email reply) after a few attempts.
- Meeting rate: the share of conversations that turn into a demo, quote or second call.
- Close rate: the share of meetings that become customers.
A worked example
These are example numbers, not benchmarks. Use your own as soon as you have them.
| Step | Example rate | Result |
|---|---|---|
| Leads worked | — | 500 |
| Conversations (after 2–3 attempts each) | 25% | 125 |
| Meetings booked | 20% | 25 |
| New customers | 20% | 5 |
In this example, 500 leads produce five customers — roughly 100 leads per customer. If each customer is worth $3,000 a year to you, each lead is worth about $30. At under 2¢ per unlocked contact, the list is the cheapest part of the whole process. Your time is the expensive part.
What to do with the number
- Check that the market is big enough. If you need 1,000 leads and your trade-plus-city has 300, widen the territory or add a second trade.
- Plan your weeks. A full-time rep can work roughly 60–100 new businesses a day with multiple attempts. That tells you how long a list will last.
- Improve the weakest rate first. A low connect rate is a list or timing problem. A low meeting rate is a pitch problem. A low close rate is an offer or pricing problem.
Track it from week one
Write down four numbers every week: leads worked, conversations, meetings and customers. After a month you'll have your own rates, and you'll never have to guess how many leads to buy again.
Start by checking how many businesses are in your territory.