Matt shows a graphic of how lead generation creates a snowball effect: more leads mean less desperation, easier sales, higher prices, better team members, and reinvestment into more leads. Fewer leads reverse it into decline. Agencies and B2B businesses need systematic lead generation or they shrink.
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Hey, everybody, it's Matt here. And I made a graphic that I think is one of the most important graphics that you can use to understand the cycle of lead generation. If you have an agency or a B2B business, or just any business that sells service and deals with leads. So let's get right into it. This right here is something that I believe explains what happens to people when they have an agency B2B business. And it's either going really good or really bad. And we're just going to call this infinite cycle of lead generation. And the thing to understand about the infinite cycle of lead generation is that it's either working for you in your favor or it's working against you at any given time. And we really, really, really want it to work in our favor. And the infinite cycle of lead gen to work in our favor comes from the ability to generate leads and systematically convert cold traffic. So. So let's go through this and see what happens here. When you have more leads, you just become less needy. That's basic law of supply and demand doesn't just apply to business or lead gen. If you were a man and had 20 girls interested in you, you would be less needy than if you had 0 or 1 or anything like that, right? When you become less needy, it becomes easier to sell, because people can just sense that, okay, even at a subconscious level, this person is not needy at all. They must be very good at what they do. They must be swimming in business and swimming in leads, right? And when it becomes easier to sell, you can say no to nightmare clients where you really can't. If you don't have that many leads, you just kind of have to take them on to pay the bills. And when it becomes easier to sell and you don't have to take on nightmare clients who take up so much of your time, you get more clients in general, and more clients in general means more referrals. And then we're going to go back to the top. When you have more clients and more leads, you can also raise the prices. The law of supply and demand. When you raise prices, you'll have more margin. You're charging more for essentially the same thing and the same cost. And when you have more margin, you can afford to hire better people. You can hire those 150,000, 200,000, $250,000 per year executives where that's not really the case for a lot of agenc agencies or B2B businesses who just have to make do with interns and $60,000 a year employees. When you have better hires, you're going to spend less time working on operations, working in the business, and you can take more time off or you can spend more time working on the business and growing. You'll be able to reinvest both time and money into growth, which will lead to more leads, which will start the cycle over and over. And when you see those people who just grow their agency or grow their business to hundreds of thousands of dollars per year, like very quickly, they're basically speedrunning this process, you know, and it's just not stopping. It's just getting more and more and more and more build out and more and more momentum. The snowball is building up, it's rolling down the hill and it just becomes so big that it can't be stopped. But the important thing here is the opposite is also true, right? When you have less needs, you become more needy. When you're more needy, it's harder to sell. If you're having a harder time selling, you're going to have to take on nightmare clients and you're going to get less clients overall. And less clients means less referrals, right? And you might even have to lower your prices because now the law of supply and demand is working against you. You just need clients at this point. And when you lower your prices, you have less margin, which means you'll have to be putting up with those lower quality hires and you're going to have to spend more time working and fixing mistakes and babysitting and you're going to have less time and money to reinvest in growth, which means less leads. And now this is an example of how you can basically go out of business or at the very minimum, make just enough money to keep the lights on, but hate your life. So this is a very important chart to understand because this is happening to every single person at every single minute in every single niche in every single country. And if you don't know that this is happening to you and you can kind of sense that it's happening to you, and it is. But hopefully this wakes a lot of people up and makes them understand like we need to be focusing on lead generation because that's going to solve every single other problem. And if we don't do that, we're going to be stuck on essentially a hamster wheel that is going nowhere. So I, hopefully this video is helpful and I'll see you in the next one.
