Is Paying per Appointment Truly Beneficial?

Amelia H.
August 12, 2023
min read
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Is Paying per Appointment Truly Beneficial?

Using external experts to find highly qualified leads for your business can save companies time and money. When seeking outbound call services, it’s imperative that businesses be conscientious about choosing the appropriate service and payment model for their needs.

What is Pay Per Appointment (PPA)?

When outsourcing lead generation, businesses have different service and payment models to choose from. Some companies offer lead generation services on a monthly fee basis, others require lump-sum initiation costs, and others require payment only when an appointment is booked. 

How Does PPA Work?

Companies offering pay per appointment (PPA commit to generating a specific number of leads for an up-front cost. After they’re paid, they deliver the leads or appointments to the client as promised.

One would think the task would be easy, wouldn't you?? Those with even the slightest experience in sales know that whenever an offer appears excessively beneficial, it is almost certainly not all it seems. PPA is no exception to this rule, especially for those looking to get any value from your company’s sales budget.

How Does PPA Work?

Too Good To Be True

Inexpensive PPA deals can be alluring. After all, what sales team doesn’t want a steady stream of qualified leads dropped on their doorstep with minimal research or financial commitment? Everyone, right? However, what you’ll likely end up with from one of these budget programs is:

  • Use of overseas callers that are pushy.
  • Agents are more concerned with the number of appointments set than with their quality.
  • Underwhelming success rates.

In contrast, on the opposite end of the spectrum, other PPA arrangements in Canada and the United States typically demand considerably steeper fees (in the vicinity of $2000 or higher per visit) and often necessitate clients paying a hefty, non-refundable initial or evaluation charge. This payment is often in addition to a monthly fee. 

These companies may also charge for using their proprietary database or for cleaning a client’s database. On top of that, they charge per appointment booked – even if the meeting has not been adequately qualified or does not come to fruition.

Watch Out for Drawbacks of PPA

At Lead Generators International, we believe it’s important to have different types of leads in your sales pipeline. This will maximise current and future opportunities. Unfortunately, PPA isn’t designed to locate and nurture prospects into decision makers; it focuses only on today’s appointment.

Also, PPA companies tend to minimise their costs by requiring clients to fit their mould, providing minimal (or no) reporting, and limiting their communications.

Watch Out for Drawbacks of PPA

Harmful to Branding Efforts

Proper brand management is critical in today’s increasingly digital world. For example, 93% of consumers in 2017 used online reviews to make purchasing decisions. When partnering with a firm that will closely interact with your potential clients, it’s imperative that they represent your brand appropriately.

Not all telemarketing companies put their clients’ branding interests front of mind. This behaviour can even damage a company’s reputation. Examples of PPA techniques that could make more of a mess than a meaningful difference include:

  • Misrepresentation of the product to secure appointments.
  • Uninformed live transfer leads.
  • Harassing behaviour from callers towards a client.
  • Zero market research

A benefit of lead generation services, that goes beyond gaining quality leads and meaningful sales appointments, is the amount of valuable market research acquired in the process. A client-finding firm that wants to see your sales team succeed will actively research current market trends relevant to your business.

For example, at our B2B lead generating firm, we cater exclusively to businesses seeking increased sales from other companies. We execute the necessary market analysis to set our clients up for success. Over time, our market research has been able to identify and isolate relevant and qualified buyers for our clients. 

LGI: The Alternative to PPA

It’s easy enough to identify and critique a poor lead-generating model. However, it doesn’t recognize a successful way to increase leads for a B2B sales team. Unfortunately, that’s not such an easy answer. But, that’s where our team of lead-finding professionals comes in handy.

At Lead Generation International, we are lead-finding strategists. We build plans that are unique to each client. Each one is designed to increase profitability and generate tremendous success for our clients. The ample facts within historical records corroborate the notion just described.

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Amelia H.

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