When looking for a formal definition of lead generation, you usually get to explore web pages created by marketers to improve their SEO and sales enablement. Some emphasize the types of leads and instruments used by them. Some try to set expectations for their leads generation as they have a philosopher's stone, converting dirt to everpaying clients instantly.
When you get to the legal agreement part, this is a better source to start. There you see something like this:
- The Company agrees to generate leads via its online lead generation and database programs. The Company will make every effort to ensure that the leads meet the qualifications outlined in its policies.
- Expectations: company will give to client leads from any online source or a database.
- Reality: lead quality is not agreed upon and both lead qualities are sold at the same price.
- The Company will provide Vendor client information for those clients who have agreed to set up services with the Vendor.
- Expectations: company is conducting a deal with a service provider, and as such covering the sales process up until the execution of works.
- Reality: promise “to set up a service” can be vague and leads need to be worked with anyway. Normally, this should be a service partner agreement with more information, such as place, date and time of a required service provision.
- We may solicit "Leads" through any means, including, but not limited to, our website, direct mail or catalogs, media advertising, and displays at trade shows or other existing businesses in the Territory. "Lead" refers to any prospective customer's name, address, and phone number for pipe lining and maintenance services to be performed in the Territory.
- Expectations: company will perform as a partner, execute a wide array of services and provide contact information after elaborate work.
- Reality: company can just provide contact information.
- The Agent consents to use the tools offered by the Company to generate leads and compile a portfolio of potential Franchisee contacts. This includes access to all social media and marketing channels available to the company, as well as, if the company determines it is required, access to company officers and other resources.
- Expectations: the agent will perform services.
- Reality: the agent will collect existing leads.
- The services offered by the Company to the Client and detailed in this Agreement, under which Leads are created on Company Sites using the Plugin, are referred to as "Lead Generation Services." Information submitted by a User of a Company Site using the Plugin is referred to as a "Lead." "Valid Lead" refers to a Lead produced by the Plugin via a Company Site that contains the true and correct information about the specific User who inputs and provides it and does not satisfy any of the invalid lead criteria listed in Exhibit A. Exhibit A: Valid Lead Information Requirements: Name, Phone number, email, additional custom questions; Invalid Lead Criteria: Duplicate Lead, resides outside of Territory, information in the Lead is false or invalid.
- Expectations: this will generate a lot of high quality leads.
- Reality: this is a good agreement. But the requirements for false or invalide information require testing, that should be carried out by the client, not service performer. If a service performer does this, very likely these leads are being sold to multiple purchasers in the same industry or the lead price is sky high. If the sales team is not too busy, it’s better to perform testing in-house and bring the lead prices down and total leads numbers up.
- Lead refers to the execution by an Internet user of an activity that has been previously defined by the advertiser on the advertiser's or its clients' website where the advertiser has inserted a post-back URL, which technically identifies the source of a completed transaction.
- Expectations: high tech services will be performed and all leads will be verified by URL.
- Reality: company will only set up advertisements to the client’s website, possibly to include organic leads as well.
What does this mean?
- There are different agreements for different kinds of lead generation. Some companies order digital marketing services as a lead generation contract. Some resell existing leads. Some conduct agreements to give leads to service providers. Some provide individual solutions. Some tweak existing infrastructure. And many more.
- It’s surely necessary to read agreements.
- But in general, most agreements about non-physical subjects support multiple readings of the situation.
- In the end, you pay for services provided. So the main part of definition must go in the Statement of works, not the definition.
- You should agree on the sources of leads and a separate pricing for each.