There is a myth among marketers that a lead magnet or a bonus is the only way to motivate customers to perform a targeted action: subscribe, register, place an order. But is he really always needed? Spoiler alert: no, but if used wisely, you can move mountains and build a base of interested customers.
Let’s figure out together what a lead magnet is, in which cases it is needed, what are its pros and cons, what types of lead magnets are, and how to come up with a good one.
What is a lead magnet?
It is an internet marketing tool. It is a gift or bonus that the company gives to the user in exchange for the completed target action: registration, subscription, purchase. As a rule, discounts, promotional codes, PDF files with a checklist or instructions, product samples, webinar recordings, etc. are used as lead magnets.
Lead magnet components:
- The form is the one that users fill out. As a rule, the form asks for an email address, but sometimes companies want to receive additional data: first and last name, phone number, gender, etc.
- Content is a bonus that users receive for completing a targeted action: checklist, promotional code, instructions, etc.
- Email is a mailing list that will be sent to users who have completed the target action. The message should leave within 10 minutes after the client has completed the target action, and contain the promised bonus.
- Thank you page – the page that users see after downloading content or filling out a form. An optional but good way to start a conversation with a lead.
Advantages and Disadvantages of Lead Magnets
- help to quickly collect a database of contacts;
- establish communication with potential clients;
- Handling a major objection that prevents a lead from making a purchase right now.
- benefit the customer (of course, if you provide useful content 😅) and therefore increase the credibility of the brand.
- lower the marginality of the product;
- do not guarantee that “warm” customers will replenish the database – people can perform a targeted action for the sake of a gift, and not out of interest in the brand;
- require time and money to produce the product (however, not always: for example, instructions for the full version of the product will cost you nothing, because you prepared them in advance).
Do you need a lead magnet?
If there are few contacts in your database, if there are not enough orders, I would like to answer “yes”. But before you run to compose instructions or offer a valuable bonus, calculate the costs. Let’s look at an example.
You’ve decided to prepare a follow-up lead magnet – instructions on how to learn how to deal with stress. To make a good material, you have to involve a copywriter and a designer. Ideally, a copywriter should understand the topic and know where to look for additional data, and a designer should also be an illustrator. Let’s say a copywriter and a designer complete the work in three days, spending 13 hours on it. An hour of work of specialists costs 1,500 rubles. 26 x 1500 = 39,000 rubles. That’s the cost of a lead magnet, which, recall, users will receive for free.
If the bonus is useful and of high quality, it will pay off. People will share instructions, visit the site, buy your products and services. The number of subscribers will grow organically. But if the instruction contains banal facts, and the illustrations are boring and do not reflect anything, the budget will be drained into nowhere. It’s unpleasant.
On the other hand, people who come to the site are not always ready to place an order right away. Subscribing through a lead magnet increases the conversion of the form, which means that money on advertising, SEO, etc. will not be wasted. Plus, you get a potential customer contact that you can lead to a purchase through email newsletters and other channels.
Types of lead magnets
What: a sample, a catalog, a related product, a miniature of a full-fledged product.
For which businesses: beauty salon, cosmetics store, clothing, food, books.
What: checklist, instructions, cases, webinars, links to articles, etc.
For which businesses: fitness, medical clinic, online education, library or bookstore, info business.
What: Time-limited premium version, demo version of the program.
For which businesses: developers of cloud solutions: platforms, programs, plugins, etc.
What: a special price for all products in the assortment or specific items. Bonus points that can be spent on purchases.
For which businesses: no limits.
What: discount card, loyalty program.
For which businesses: no limits.
Step by step: how to prepare a good lead magnet
- Define a goal: to establish a relationship, motivate to subscribe, show expertise, invite to an event, etc.
- Study the needs of the target audience. Figure out how your product will help close them.
- Choose a format depending on the product and the topic you are going to cover.
- Prepare content – text and design. The lead magnet should cover the pain of your prospect. For example, if you have an online musical instrument store, make a checklist on how to choose a guitar for a beginner.
- Determine at what stage sales funnels the client will get when he reacts to the lead magnet, what tasks the manager will have to perform in order to bring the client to the purchase.
- Send the promised bonus as soon as the user has completed the targeted action.
What is the bottom line?
Lead magnet is an additional way to attract customers. On the one hand, it raises brand interest and can nudge users to buy. But on the other hand, a high-quality magnet is not a cheap pleasure: you need to think over the content, pay specialists, be ready to give a discount or other bonus. Before giving out gifts, consider whether the cost of designing them would be appropriate.