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How Much Money Have You Made From Each Lead Source, with Erik J. Olson

Episode #1369

Erik recently worked on determining how much money we made from each lead source we have and where the leads come from. Erik explains why you should think about how you track deal values in this episode.

November 15, 2022

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Episode Transcript

Erik J. Olson (00:01):
Do you know how much money you make from every lead source? What is happening? This is Erik J. Olson. So I have a task that I worked on today, and God, it took so much longer than I thought. So the task was identify how much, First of all, for every lead source that we have, how many leaves have we gotten in the last year and how many customers did that result in? And what was the revenue that was produced because of it? You would think it’d be an easy thing. But <laugh>, let me tell you, that may tell you something that was not easy. And the reason is data management. So we use HubSpot here and it’s not that HubSpot is a problem, but the data that you put into HubSpot, high level Cleo pipe drive, name the CRM, it doesn’t matter what it is. Data like junk data in equals junk data out.
And so I found just a bunch of things that were inconsistent over the course of the years, just going back to January 1st, 2022 that I did this analysis. And I found where for most of our history, when it came to recording the size of a deal, all we recorded in HubSpot at the deal level was the monthly recurring revenue. Well, at some point we upgraded, and I think it came with an upgrade where we were able to create line items for these deals. So instead of saying just as an exam, I’m just gonna make up numbers here. Instead of saying like $2,000 mrr, what we could say is it’s $500 to the website, $500 for social media, a thousand dollars for seo. Again, I’m just making these numbers up on the fly. So instead of typing 2000 and that’s the only information we have now we have products, services that we sell with a monthly amount.
And HubSpot calculates for us not only ther the monthly recurring revenue, but things like the annual revenue. And as the client continues to be a client, it should continue to accumulate how much revenue overall we’ve received from that client. Now, I haven’t figured that last part out. I haven’t got there yet, but we have got to the part where we put in these products with the monthly amount and there’s projects in there as well, and it calculates the whole thing like an annual amount. Well, so when I looked at all of the deals that we had won for the past this year in 2022, some of them had the MRI number, $2,000 and that’s it. Others had the annualized amount. Let’s just go with $2,000 a month times 12 months, 24,000.
Erik J. Olson (02:59):
So I couldn’t even just add them all up. I had to look at every single one and be like, Is this a monthly amount? If so, multiply by 12, Is this an annual amount? If so, just take it as is. And then, so that’s one problem that I had. So if you know, should really be considerate of how you track your deal values. If you want to evaluate things like what lead source is actually working for you and when you’re inconsistent we have been, then you’re gonna have problems. Now the good news is we went from a bad, we’re inconsistent cuz we went from a kind of lame way of doing it to a way better way of doing it, doing it the right way now. But we had this old data which either we just have to deal with or we have to go back and fix.
And going back and fixing old data is not only at the bottom of the list, it’s not on the list, I’m not gonna do it. I’ve got way too many things to do and not enough time. So I just had to deal with it and just one time crunch out the numbers and everything else. Another thing is that lead sources for us have changed a lot, the lead to some to modified names, and so there’s inconsistencies there. So just a simple task of figuring out how much money we’ve made and how many clients we’ve gotten from each lead source is not trivial, trivial, but I did it and I’ve got it and I’m looking at it right now and it’s pretty cool actually. There’s some real insights here that I did not expect. So I would definitely encourage you to do just that. Analyze your deal flow, see where the leads are coming from, and when you find an anomaly where a lot of them are coming from one lead source, lead into it.

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About The Hosts

  • Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.

  • Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.

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Website Design, Online Advertising, SEO, Social Media & Digital Marketing.
© Array Digital LLC