A short explainer by Tom Burton describing three primary situations that create "black hole" leads (leads that are lost and never converted): the lead chasm (lost in the shuffle, especially with third-party channels), the lead barricade (partners generate leads but cannot log/manage/qualify them), and the lead dump (leads not immediately ready and therefore discarded). The speaker states the lead chasm can account for up to 70% of the problem and emphasizes that third-party channels magnify these issues.
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So you may be wondering exactly how blackhole leads come about. Basically, there are three situations that are the primary cause of black hole leads in any business. The first reason is what we call the lead chasm. The lead chasm occurs when leads are lost in the shuffle and never receive any follow up simply because, well, they got lost in the shovel. This situation accounts for up to 70% of the black hole lead problem and the lead chasm problem is significantly magnified with businesses that sell through third party channels such as independent reps, distributors, dealers and brokers. The second reason is what we call the lead barricade. The lead barricade occurs when a company has third party partners, influencers and sales channels that are generating leads on the company's behalf but are logistically unable to log, manage and track these leads or assist with qualification and nurturing. As a result, many potential leads that are generated by sales partners are lost or overlooked and never get a chance to be turned in to a customer and revenue. The third reason is what we call the lead dump. If a lead gets past a lead chasm and the lead barricade, the next challenge is avoiding getting dumped because a lead is not immediately ready to respond and convert into a sale. However, just because a lead does not respond initially does not mean that that lead is not qualified and or not interested in your product or service. Rather, in most cases it simply means that the lead is just not ready to take the next step. While there certainly may be other reasons and situations that result in black hole leads, these three situations are the catalyst behind the majority of black hole leads.
