You may have noticed various types of lead magnets when browsing the internet. It is a commonly used digital marketing tool that has proven its effectiveness when done right.
But what exactly is a lead magnet and why has it remained an important component in an advertiser’s arsenal?
At its core, a lead magnet is simply a free incentive that businesses provide to their website visitors in exchange for contact information or a chance to interact further along the sales funnel.
What is a Sales Funnel?
The sales funnel is one of the core concepts of the digital marketing industry. To better understand it, picture a real-life funnel where you’d pour some substance which would then filter down towards a central destination.
A sales funnel is a multi-step process that turns prospective customers into actual buyers. It’s a process because it involves several steps in between the awareness levels, where the prospective customers enter the funnel, and the final action when they take the necessary action to complete the purchase.
Why Do You Need a Lead Magnet?
A sales funnel is widest at the top and narrow at the bottom. This means that every stage of your sales process propels your prospective customers onto the next stage. It drops all those prospective customers that aren’t a fit for your offering.
Therefore, selecting the best lead magnets will help you to funnel down your prospects to the ones that are most likely to convert, which allows you to focus your sales efforts on the maximum number of targeted sales leads you can get for your product or service offering.
How to Create A Lead Magnet
There are, of course, several strategies on how to create a lead magnet. However, the best lead magnet contains the following elements:
- It solves a real issue facing your targeted audience
- It has the promise of a quick and easy solution
- It provides specific information
- It provides high value (both actual and perceived)
- It is instantly available
- It indicates the company’s expertise in the field or industry
Features of an Effective Lead Magnet
- Highly Specific
- Give A Promise
- Speak to A Known Desire or Problem
- Immediate Gratification
- Shifts the Relationship
- High Perceived Value
- High Actual Value
Successful Lead Magnet Ideas
Not all lead magnets work the same. However, all lead magnet ideas will essentially fall within three key stages of the sales funnel: the awareness stage, the assessment stage, and the decision stage.
A. The Awareness Stage
At this stage, prospective customers are only beginning to realize the existence of a problem or a need. They are essentially trying to put a name to it. The following lead magnet ideas can help you create that “aha!” moment for your prospective buyers:
1. Guides/Whitepapers
Guides can yield great results at the early stage of your sales funnel. They educate prospects about their specific problems or needs.
Check out our own whitepaper – “The Ultimate Digital Marketing Playbook” by clicking here!
2. Bonuses to the Original Post
A bonus pack can be a powerful lead magnet for prospects who have already visited your original post. It can provide extra information, more links, or additional information that may have come up after the original post was shared.
3. Checklists
Checklists compile everything a potential customer needs to know into one actionable list. Since checklists are easy to consume, they are among the highest converting lead magnets.
4. Cheat Sheets
Sometimes, your marketing content may cover a complex topic, which runs the risk of getting ignored.
A cheat sheet is a concise, one-page resource that gives your prospects a chance to opt in after a quick glance. It can take the form of a glossary or a summary of the key points.
5. Toolkits
Toolkits are quite popular lead magnets simply because many prospects are often eager to know what’s working for others or what the pros are currently using to get their results.
6. Templates
Templates provide an outline or a starting point upon which the prospect would just need to fill in the blanks, or customize them for the own specific needs.
7. Workbooks
Workbooks are more like planners but the key distinction is that they help people figure out something or complete a particular exercise. A perfect example would be an editable workbook that you can download and fill out on your computer.
8. Quizzes/Surveys
Quizzes and surveys covert easily as they are some of the most entertaining lead magnets. They require prospects to answer a few questions and then spit out an interesting result which would then be delivered through an email address.
9. Assessments/Tests
Assessments and tests differ from quizzes and surveys in that, they cater to prospects who may be looking for expert opinions on the issues and opportunities that they trying to address.
In this case, your prospects allow you to assess their current state by taking a short test which presents an opportunity for further engagement.
B. The Assessment Stage
At this stage, prospective buyers understand their needs and they begin to research on potential solutions. The following lead magnet ideas will help you position yourself as an industry expert who can solve their problem:
10. Training Videos/Webinars
Webinars and training videos tend to have a high perceived value. They are quite irresistible because they play on ‘urgency’ and ‘fear of missing out’ (FOMO) since they often appear for limited runs or specific periods.
11. Live Demos
A live demo can be any piece of content that teaches your prospect how to undertake a specific thing. It helps move the prospect further along the sales channel.
12. The Secret
Knowing others people’s secrets to success or high value information can make you feel powerful and in control. As a lead magnet, this can be incredibly luring.
C. The Decision Stage
At this stage, prospective buyers assess potential solutions to their needs with a view to settling on the most appealing. It is at this point that they pit you directly against your competitors.
Here are some lead magnet ideas that can help you let the buyers know why they should choose you instead of the competition:
13. Free Consultation
This type of lead magnet would work best for businesses offering services. It helps to bridge the connection and gives the prospect an in-close explanation on what type of value your company brings.
14. Early Bird and Value-Rich Subscriptions
Early bird discounts work best at the bottom of the sales funnel where they help to sweeten the deal by rewarding your most enthusiastic prospects.
15. Case Studies
Case studies are basically a collection of success stories from people who have used your products and services. They work best at the bottom of the sales funnel where prospects may need that final push to make a purchase.
16. Sales Materials
Your prospects are usually interested in your products and they often require specific information like pricing to make their purchase decisions. Digital sales materials are especially effective because they provide the necessary information and also create an opportunity to ask for an email address for delivery.
17. Software Download/Free Trial
You’ve probably seen a lot of these types of lead magnets without even realizing it, especially if you have ever looked around for a software tool or app.
18. Discount/Free Shipping
Every online shopper counts on free shipping. It could be the last thing to tip them over, especially when they are at the last stage of executing the purchase.
Conclusion
Interacting with your prospects at every stage of the buyer’s journey is crucial if you are to convert them into customers. Therefore, understanding your ideal customer and selecting the right lead magnets at each stage will help you create a healthy backstop of leads.
If you would like to learn more, please check out our blog posts on how to create your ideal buyer’s persona by clicking here, and on creating a customer journey’s map by clicking here.
What are some of the lead magnets you have used in the past that worked successfully for you? Please feel free to share your thoughts in the comment section below.
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Alan Lo, Managing Partner of Stratwell Strategic Solutions, brings a decade of entrepreneurial and business development experience. Early in his career he was instrumental in building out the distribution channels of a real estate investment firm with over $2 billion in AUM. He has then founded an investment company in 2014 which he successfully exited in 2019.
