Why you don’t want more leads (stop the mass lead generation programs)

Here’s the hard truth for tech founders, particularly those selling a complex solutions to infrequent buyers. You don’t want more leads. The temptation to focus on lead generation as the be all and end all, is not the answer to your prayers. Leads are good, but not all leads are created equal. Quantity does not trump quality. Let’s unpack this.

Complex Solutions Require In-Depth Education and Nurturing

For complex solutions, requiring knowledge and investment by the buyer, they must understand the product’s value. Lead generation only measures initial interest (“that’s interesting”, “I need to know more about this”, “mmm, I might need this in my next job”, “woohoo, free education”). Real (quality) leads may need months, if not years, of nurturing and education before they can make a buying decision.

Where does that leave you and your revenue aspirations for this year? If you rush the quality leads for short term revenue gains, you risk reputational damage and scaring off real buyers.

Solution 1: Put time and energy into deepening real buyer understanding

You need to build a long term pipeline with prospective buyers slowly moving towards a decision. Consider their buying cycle rather than your short term sales cycle. You need to get interest, educate, nurture and nourish these leads for long term gain. Social media, website, guides, events (online and in person) and newsletters are all part of this investment.

Infrequent Buyers Value Trust Over Speed

When your solution is something a buyer only needs occasionally (sometimes they only buy this once in a career), relationships become more important than speed. Infrequent buyers tend to make buying decisions based on trust, past experiences, and referrals. Focusing on lead generation for “now” revenue above building trust can make prospects feel pressured and undervalued, which is counterproductive in longer sales cycles.

Invest in relationships and focus on the long game: nurturing trust, being patient, and providing value without expecting an immediate return.

Solution 2: Focus on relationship marketing.

Establish thought leadership through educational content, case studies, and industry events that build credibility and keep the business top of mind, even when prospects aren’t actively looking to buy. Add value and challenge the norm through direct marketing to specific people in specific targeted accounts. This is not a lead generation program but more of an investment in future buyers.

Solution 3: Focus on targeted account-based marketing.

Once you’ve done Solution 2, focus on target accounts and marketing directly to them and their people. Start with 20 and put a plan on targeting them. Deeply understand who they are, what their drivers are, what their issues are, who the key people are, what they read, where they go (events) and get focussed on executing a targeted account plan.

Investment in Existing Customers Translates to Long-Term Revenue

Once you have a new customer, maintaining a high-quality customer experience can have a huge impact on their and your long-term success, especially if the solution requires ongoing services. Overemphasis on new business lead generation can shift focus and resources from the delivery of excellent service to existing customers.

Investing in a positive experience for current clients can lead to referrals, repeat business, and renewals. Moreover, in industries with infrequent purchases, a satisfied customer who feels valued is more likely to return to the same vendor when the need arises again when they move companies—even if it’s years later.

Solution 4: Prioritise post-sales engagement and support.

Offer personalised training, regular check-ins, and top-tier customer support. Focusing on client success and satisfaction drives loyalty, increasing the chances that existing customers will become advocates or refer the business to new potential leads.

Niche Market = Be an Authority

When you have a specialised solution in a niche market, lead volume will be inherently low. Lead generation can often deliver diminishing returns, and even cause damage, if approached indiscriminately. In this case lead generation risks attracting irrelevant prospects who won’t convert or don’t truly need the solution.

In a niche market, it’s often more effective to position the brand as a trusted authority. Thought leadership, involvement in industry discussions, and community engagement are typically better investments than high lead volumes because they ensure the business is known among key stakeholders.

Solution 5: Engage in industry-specific positioning.

Consider attending conferences, publishing in niche publications, and partnering with other industry leaders. Instead of aiming for a high volume of leads, position the company as a trusted, reliable choice within the industry to draw in leads who are genuinely interested in the solution offered.

Link Pipeline, Sales Reps and Lead Generation

The usual thought process is to get more revenue you need a bigger pipe, so more leads and hire more reps. The reps demand more leads and blame their poor performance on the volume and quality of the leads. Here’s something to think about – a rep with an unlimited supply of leads will not put the right thought and effort into each lead as they know there are more coming. In this scenario, over time, the rep demands higher and higher quality leads until they become an order taker, not a sales rep.

Ensure you understand, from your experience, your pipeline maths equation. $1 in revenue requires $3 in pipe and $10 in qualified leads. Then setup you reps into that equation. Balance lead flow with rep hunger and capability to act and close those leads.

Solution 6: Implement a Sales Framework.

Sales is a science. You need a sales framework to build and manage a high performance sales team and deliver predictable, sustainable results. You can plan for success, hold reps accountable to those plans and execute on the cadence required to deliver revenue success.

Final Thoughts

Forget the mass marketing lead gen campaigns that focus on quantity over quality. By shifting focus toward nurturing relationships (existing and potential clients), delivering exceptional customer experiences, positioning your business as an industry authority, and building a predictable revenue model, tech founders can ensure sustainable growth and success. Prioritising long-term relationships and your reputation will generate higher-quality leads and customers who trust and rely on your expertise over time.

Schedule a one on one with our founders (JD or Sarge) to walk you through how you can make this transformation.