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You

How much should a small business spend on getting leads?

Start from what one new customer is worth to you over a year, then decide what share of that you would happily pay to win them. Spend a small, fixed amount for a month or two, count the customers it brings, and only raise the budget on the channels that paid for themselves.

Key facts

  • Spend a small, fixed amount for a month or two, count the customers it brings, and only raise the budget on the channels that paid for themselves.
  • You never want to pay more than that to win one.
  • Try one thing at a time so you can tell what worked.
  • A contact list with your own emails is usually the cheapest test, because you pay for people, then your time.

How do I work out what a customer is worth?

Take what an average customer pays you in a year and how many years they tend to stay. That number is the ceiling. You never want to pay more than that to win one.

Should I spend on ads, lists or an agency?

Try one thing at a time so you can tell what worked. A contact list with your own emails is usually the cheapest test, because you pay for people, then your time.

How long before I judge the spend?

Give any test a few weeks of steady effort. Count replies first, then meetings, then customers. Cut what brings none of the three.

OptionWhat you pay forBest for
Contact list plus your own emailsPeople and your timeOwners who will write and reply
Paid adsClicks and viewsProducts people already search for
Lead agencySomeone else running outreachTeams with budget and no time

How to set a lead budget

  1. Value a customer

    Work out what one customer pays you over the time they stay.

  2. Pick a share

    Decide the most you would pay to win one customer.

  3. Run a small test

    Spend a fixed amount on one channel for a month or two.

  4. Count customers

    Track replies, meetings and new customers from that spend.

  5. Grow what pays

    Raise the budget only where customers cost less than they are worth.

When does Buzzlist fit, and when does it not?

It fits when

  • You want to test outreach on a small, fixed budget.
  • You would rather pay for people than for clicks.

It does not fit when

  • You want leads with no time spent writing or replying, and you have no budget for help.
  • Your buyers are outside the United States.

Questions people ask next

Is there a free way to start?

Yes. The Buzzlist Free plan includes 100 contacts a month with filters and saved lists, with no credit card.

What does a paid Buzzlist plan cost?

Paid plans start at $97 a month for Starter, with 1,000 contacts. See the pricing page for every plan and pack.

Should I spend more in a slow month?

Only on a channel you already know pays. A slow month is a bad time to test something brand new with a big budget.

Answered by the Buzzlist team. Last reviewed .

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