Just how many leads do you need?

Spaceship
Spaceship
Apr 11, 2016 · 3 min read
Leads, Leads, Leads..

In the past few weeks, many founders and sales people asked me how many leads should I contact on a weekly or monthly basis? Couple years ago — I would've answered AS MANY AS YOU FREAKING CAN. But since we launched , my view on this has significantly changed.

I also read a bunch of books and articles written by experienced Sales reps, and I came up with the following formula. (it's definitely not bulletproof, so I would be happy to discuss it with you. don't hesitate to comment / or send me an email).


1 SALES REPRESENTATIVE = Leads (x) Response rate = should always be >10 daily!

For example, let's say I am running a marketing agency with 3 SDRs and I know that our response rate on cold-outreach emails is around 8%. So if I want my SDRs to have at least 10 new prospects in the pipeline every day, each one of them has to contact 125 new leads daily. (quick maths — that is 7,500 leads for 3 SDRs monthly).

Response rate

There are three main factors that influence response rate:
1. — keep it short | relevant | use placeholders
2. Trust — the recipient must believe you are the “real deal”
3. Industry — some industries are frankly speaking very difficult

If you have never done cold-email outreach and you need a benchmark response rate for your business, just email us at 321@spaceship.rocks ;)


A couple notes about the 'LEADS FORMULA'

  1. If you have inbound leads (from Campaigns or Landing Pages, etc.) use a separate formula (with the appropriate response rate). The response rate is usually higher for inbound. And then combine it with formula for cold-outreach.
  2. Each SDR should handle at least 10 hot leads every day / 50 each week. This is really the absolute minimum. Of course it also depends on the type of business, on-boarding process, etc. However, when your SDRs don't feel they can close at least 1 good deal every day, they will get bored and lose excitement.
  3. Don't count “recycled” leads into the formula. You should definitely follow up on leads, until you get at least a clear “NO” from them. But every SDR needs to get fresh leads every day. Otherwise, (again) they will lose motivation.

If you need killer leads, shoot us a message at 321@spaceship.rocks. We are already helping 600+ businesses across 31 industries :)

Written by .

Astronaut • Founder • Previously CMO • Studied


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40 posts

Stories from the makers of @spaceshyp. Sharing our thoughts and ideas in 40 posts / 2016 — Enjoy!

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Spaceship

Some people build rockets, we build Spaceships. Get highly-targeted leads with @spaceshyp or Hire rockstars with @spacemanHQ

40 posts

40 posts

Stories from the makers of @spaceshyp. Sharing our thoughts and ideas in 40 posts / 2016 — Enjoy!