Lead Magnets, How Do They Work?

In digital marketing, your email list is arguably the most powerful tool in lead generation and online sales.
Building an email list takes time and effort, but once you have direct access to the inbox of your customers, you can build rapport with a targeted audience, fostering a trust that makes it easier to sell your products and services.
The problem, however, is getting those email addresses in the first place.
Years ago, people thought little of giving their details out online. Now, it takes something a little more ingenious.
Enter lead magnets.

What is a Lead Magnet?

These days, people want to feel like they are getting something in return for giving up their email address. Lead magnets are, by definition, an irresistible offer that attracts potential leads to your business.
All the website optimisation in the world will do little for your bottom line if you can’t drive lead generation. A slick and speedy website offers a better user experience, but without valuable content, your online sales are unlikely to budge unless you can connect with your audience.
In order to get people to subscribe, you must provide them with something valuable. Your lead magnet should be free and tailored to your target audience.
It is important to know your customer. The more enticing the offer, the more likely you will see an increase in subscribers.

How Effective Are Lead Magnets?

Here’s a fun fact:
96% of visitors who come to your website aren’t ready to buy anything on the first visit.
Why?
Because they don’t trust you…yet.
Lead magnets bridge that gap, earning you that precious email address and proving to your customer that you can give them something valuable at no cost.
From there, you have a targeted lead, which you can then nurture until they are ready to make a purchase.
To understand this better, imagine this scenario:
Two rival blogs post a similar post about email marketing strategies. The first blogger has a sign-up form at the bottom of the post, which asks readers to “Sign up for updates”. The second blogger has a sign-up form too, but they offer a PDF list of “50 Compelling Email Subject Lines to Boost Your Conversion Rates”.
Who do you think will get more email signups?
There is no doubt that lead magnets work. As competition gets tougher online, they are becoming more important in lead generation. Having a great opt-in offer can make a massive impact on your online sales.
So, how exactly do you create a great lead magnet?

What Makes A Good Lead Magnet?

There are a few key considerations that businesses must not ignore if they want to create a lead magnet that will drive online sales.
Lead magnets should:

Offer real value – It is possible to have several lead magnets, but each one must target a specific subset of your audience. By drawing up detailed audience personas, you can identify the problems they face. From there, it is possible to devise a value proposition.
Have a great name – The title of your lead magnet is often overlooked. By honing in on the ROI that it offers, you can create a very specific title that tells readers what it is, and what it can do for them.
Be compact – Your lead magnet needs to be concise and easy to consume. They must offer immediate value, offering your subscribers one quick win.

5 Great Ideas for Lead Magnets

Once you have honed in on the problems your target audience faces, you can find a way to offer them solutions with an irresistible lead magnet.
It can take many forms. Here are some tried-and-tested lead magnets that can turbo-charge your email list.

Cheat Sheet

People like to get straight answers given to them. A printable cheat sheet that enables users to follow a process is very beneficial to audiences in all types of industry. They prove effective as they take away the need for thinking. Cheat sheets are the epitome of a digestible, quick win.

Webinar

Video content is incredibly powerful as a lead magnet. Offering a valuable ‘How To’ video or informative webinar that that gives solutions to common issues is not only a great value proposition, but also a smart way to increase your brand exposure. Taking it further with a mini-series or video course will help with lead generation, nurturing prospects through the buying funnel as their trust in your brand grows.

Free Trial

A common lead magnet type in SaaS is the offer of a free trial. This allows your business to show off their product and get more email subscribers. By giving users a demo version of the product, they have an opportunity to test drive new software or programs and decide if it is for them. As the demo version has limited features, it usually provides enough intrigue for the tester to want more. This is a good lead magnet to use for people who are almost ready to buy.

Giveaway

Sometimes the easiest way to get people on board is by offering a really cool gift. Using a free giveaway can entice a lot of new subscribers. However, offering a free iPad to every new subscriber may not be realistic. Finding a gift that won’t break the bank and only attracts genuine leads is important for this type of lead magnet.

EBook

Using an eBook as a lead magnet is a very common idea. The concept of a quick win is sometimes forgotten about with this as many eBooks can run into hundreds of pages. However, with a niche focus and actionable help, the eBook can prove to be an effective lead magnet.

What Matters Most When Creating Lead Magnets

Ultimately, your lead magnet needs to have a specific focus, offering your audience a quick solution to an urgent problem.
There are many other factors that can affect its impact, including your website optimisation and marketing methods. In the end, with in-depth research on your customer, you can identify their pain points and offer a lead magnet that they simply can’t resist.
A powerful lead magnet has the potential to seriously boost your subscriber numbers, which will eventually skyrocket online sales.
The gold is in your list.
How will you build yours?