What is a lead magnet?

 by Lari Numminen.

Lead magnets are a controversial topic in B2B-sales. While they form a big part of inbound marketing, many marketers and sales leaders have started to discount the value of lead magnets in today's complex sales processes.

As a CMO, I see both good and bad sides to lead magnets. Let's go through what they are and when they fit your sales strategy.

What exactly is a lead magnet?

A lead magnet is a valuable offer made by a business to potential customers in exchange for their email address or other contact information.

The offer can include free access to content like ebooks, templates, whitepapers, or email courses. By providing something of value, businesses can attract leads and grow their email list for future marketing efforts.

Why are lead magnets are used in B2B-sales?

Lead magnets can be an effective way to attract more leads, boost sales, and enhance understanding of the target audience.

The goal of lead magnets is to get actionable and fresh contact details to sales reps by giving valuable content or products. While 95% of B2B buyers are not ready to buy, lead magnets can be a way to start a conversation with potential customers that can be nurtured into qualified leads.

Lead magnets should address a specific problem or need of the target audience. For instance, providing a free whitepaper, ebook, case study, or email course can attract readers. 

Having lead magnets on a website can benefit your SEO strategy. By collecting relevant contact details on your website you can get a better understanding of who are finding information on your website. This in turn can give you inspiration for creating new search engine optimized content in the future.

Common types of lead magnets

There are countless different types of lead magnets used in B2B-marketing.

Some of the most popular ones include:

• Ebooks - Ebooks, or online guides, are one of the most common types of lead magnets. Ebooks offer valuable information to prospects, solving problems or offering insights relevant to the target audience.
• Whitepapers - Whitepapers are another great way to attract leads in marketing. They provide detailed information on a specific topic, encouraging people to share their email address to access the content.
• Interactive content and quizzes - Interactive lead magnets, like quizzes, surveys, and videos, can help businesses get leads. These tools engage users and prompt them to share their info through a form in return for access to the content.
• Infographics - Infographics can offer valuable information in a visually appealing format. This can encourage people to join an email list or share their contact details for more insights.
• Interactive demos - Increasingly product-lead companies choose to offer interactive demos on their website for people who are not quite yet ready to speak to sales. 
• Webinars - webinars are a popular way to demonstrate thought leadership and new product features to a broader audience.

Tips for creating effective lead magnets

Lead magnets often require testing and interation to bring results. Some methods that work for one company may not work for others, and online content like ebooks and whitepapers can lose appeal over time. 

Here are a few best practices to keep in mind.

Know your audience

Identifying the target audience for a lead magnet involves considering demographic information such as age, gender, location, income level, and interests.

Understanding the behavior and preferences of the audience is crucial. It helps in tailoring the lead magnet to resonate with them. Creating a free ebook relevant to the target audience's specific problem or offering a free trial of a product they have shown interest in can significantly increase leads through an opt-in form.

Providing valuable and relevant content through the lead magnet helps businesses capture the attention of prospects. It encourages them to share their email address in exchange for the offer.This personalized approach increases the chances of building an email list and enhances the overall effectiveness of lead generation efforts.

Offer real value

Businesses can make sure their lead magnets provide value by addressing their audience's problems directly. For instance, offering a free whitepaper or ebook in exchange for an email address gives readers useful information and grows the email list for future marketing. Tailoring lead magnets to the audience's interests helps to engage leads better and improve sales chances. Interactive lead magnets like quizzes or surveys offer personalized ads that connect with consumers.

Also, providing freecase studies or templates displaying the business's expertise shows value to potential customers and can lead to more sales.

Promote across multiple channels

Promoting lead magnets can help businesses increase sales and leads. It's therefore smart to promote lead magnets widely across different channels, like the website, paid ads and email marketing. By using multiple channels, reach a wider audience with different preferences.

A typical sales process requires hundreds, or even thousands, of engagement points with prospects. Using data for personalized advertising and targeted campaigns to boost customer engagement and conversions.

Why are lead magnets losing appeal in B2B-sales?

Lead magnets might seem less popular today in sales and marketing for several reasons, though it's important to note that they are still widely used and can be highly effective in certain contexts. Here are some reasons why their perceived popularity may have declined:

• Market Saturation: The internet has become saturated with lead magnets, making it harder for any single lead magnet to stand out. Many users have grown accustomed to seeing offers for free ebooks, white papers, and webinars, which can reduce their overall impact.

• Quality over quantity: There's been a shift towards prioritizing high-quality leads over simply generating a high volume of leads. Businesses are focusing more on creating content and offers that attract genuinely interested prospects, rather than casting a wide net with a generic lead magnet.

• Evolution of content consumption: The way people consume content has evolved. With the rise of video content, podcasts, and interactive tools, audiences might be less inclined to download a PDF or ebook. Marketers are exploring new formats that align better with current content consumption trends.

• Increased use of other strategies: There's been a growth in other marketing strategies, such as content marketing, influencer marketing, and demand generation, which can sometimes offer more direct ways to engage with and nurture leads without the need for a traditional lead magnet.

• Need for more personalized engagement: Today's consumers expect more personalized and engaging experiences. While lead magnets can still be personalized to some extent, other strategies might offer more opportunities for deep, personalized engagement.

Key takeaways

A lead magnet is a free offer businesses use to attract potential customers. It helps capture contact information. Types of lead magnets include ebooks, templates, webinars, etc. They provide helpful information or solve a specific problem for the target audience. Lead magnets build trust, establish authority, and convert leads into customers. Knowing about lead magnets is important for marketing and customer acquisition.

Frequently asked questions

What is a lead magnet?

A lead magnet is a valuable piece of content or free offer that businesses provide to prospects in exchange for their contact information. Examples include ebooks, checklists, webinars, and templates.

Why are lead magnets important for businesses?

Lead magnets are important for businesses because they provide value to potential customers in exchange for their contact information, helping to grow the email list and generate leads. Examples of lead magnets include free ebooks, webinars, and templates.

How do lead magnets help in generating leads?

Lead magnets help in generating leads by offering valuable content or resources in exchange for contact information. For example, offering a free e-book, webinar, or template can entice potential leads to provide their email address, helping to grow your subscriber list and nurture relationships with prospects.

What are some examples of effective lead magnets?

Some examples of effective lead magnets include eBooks, checklists, webinars, free trials, and exclusive discounts.

How can I create a successful lead magnet for my business?

Create a successful lead magnet by offering valuable content, such as eBooks, templates, or webinars, that solves a specific problem for your target audience. Use a compelling title and strong call-to-action to prompt sign-ups. Promote it through targeted channels to attract quality leads.