3 Factors to Consider When Creating a Lead Magnet

Welcome to the blog! Today, we’re diving into an essential topic for anyone looking to attract more qualified leads to their business: lead magnets. If you’ve ever wondered how to build your email list without just attracting freebie seekers, you’re in the right place. We’ll explore how to create lead magnets that not only provide value but also pre-qualify your leads, ensuring you’re connecting with potential clients genuinely interested in your offerings.

Understanding Barriers to Entry

Before we dive into specific types of lead magnets, I want to break down a marketing concept called  “barriers to entry”. In marketing, barriers to entry refer to the steps or obstacles a potential customer must overcome to engage with your product or service. Now you might be thinking why would anyone want any obstacles at all!? But I promise these barriers can help filter out less serious prospects, allowing you to focus on those more likely to convert into paying customers. I will break down these barriers into three categories: low, medium, and high.

Low Barrier to Entry

A low barrier to entry means the customer has to do very little to access your lead magnet. This often involves simply providing an email address in exchange for a resource like a PDF guide or a discount code.

**Life Example:** Sephora offers 20% off your next purchase when you sign up for their email list. This is a low commitment, easy step for the customer, making it an attractive offer for many. Similarly, offering a downloadable PDF or a simple checklist can be a low-barrier way to grow your email list.

**Pros:**

– Easy and quick for the customer

– Can attract a large number of sign-ups

**Cons:**

– May attract freebie seekers not seriously interested in your product or service

– Lower qualification level of leads

Medium Barrier to Entry

Medium barriers require a bit more effort from the lead, often involving multiple steps. This can include signing up for a webinar, listening to a private podcast, or taking a quiz. These steps help further qualify the lead by demonstrating their willingness to invest time and effort.

**Example:** A private podcast that requires a user to sign up, download an app, and listen to episodes is a medium barrier. Another example is a quiz where users answer questions, providing you with valuable information about their needs and preferences. PS you can check out my private podcast here

**Pros:**

– Better qualification of leads

– Higher engagement from leads, as they invest more effort

**Cons:**

– Fewer sign-ups compared to low-barrier offers

– Requires more effort to create and manage

High Barrier to Entry

A high barrier to entry involves significant effort or commitment from the lead, such as providing sensitive information or making a financial investment. This could include signing up for a paid workshop, applying for a credit card, or joining a premium membership.

**Example:** Offering a paid mini-workshop where participants learn a specific skill or receive a valuable template is a high barrier to entry. Another example is a credit check for a store credit card, which requires providing sensitive information.

**Pros:**

– Highly qualified leads who are serious about their needs

– Higher likelihood of conversion to paying customers

**Cons:**

– Can deter potential leads if the barrier is perceived as too high

– Requires careful balancing of cost and value

Which lead magnets work best for my business model and prices?

Ok so you might have read all of this and thought awesome which one should I use for my business model? If that’s you then download the private podcast here to see a complete breakdown of what lead magnet is best for your offers.