reasons startups need lead generation

The stories of startups are more or less the same. A couple of friends or colleagues that are outstanding at what they do and have new ideas decide to make their own company and offer their services and products to the world. After a few attempts they finally succeed in making their product or service exactly the way they want it but that’s when the trouble starts. 

The stories of startups are more or less the same. A couple of friends or colleagues that are outstanding at what they do and have new ideas decide to make their own company and offer their services and products to the world. After a few attempts they finally succeed in making their product or service exactly the way they want it but that’s when the trouble starts. 

They are new on the market, usually inexperienced in the dog-eat-dog sales field and know how to make the service or product but not how to sell it. They don’t have sales department, hell, usually not even a sales person and they don’t have a clue where to begin when it comes to selling and promoting their business. But without the sales, you might as well put up the “Closed” sign on the door right away.

Startups have no or very little idea about who to target or how to organize and align their sales and marketing activities, who and how many decision makers there are per company or how to reach them.

Even though lead generation is necessary in today’s sales process, startups are the type of businesses that seem to need lead generation more than any other business out there. Because this method will provide you with exact name, job description and contact information about the people that are the most likely to buy your product or service.

These are the main 10 reasons why a startup should start generating leads:

1. You Want To Focus On Your Core Business 

Startups have scarce resources to maintain and improve their businesses as it is, and most of the people involved usually have other things to do that don’t involve selling. They may need to develop their services and products and if those are not satisfactory there’ll be nothing to sell. Even after the product or service is developed, it always needs to change and become even better. 

Focus on what you do best and let others sell. Find yourself a sales freelancer or hire a lead generation company to which you can also outsource SDR activities (ie. email outreach). Market Republic, for example, will save your time by providing you with highly targeted leads with 98% accuracy.

2. You Don’t Have A Sales Team Or Have Very Busy One

Most startups can’t afford to have a sales person or an entire sales team. Meaning they have no idea how consuming a sales job can be. Sorting contacts, updating CRM, evaluating their purchase intent, writing email threads, scheduling meetings, etc. And those who do have a sales department are usually so busy trying to find a buyer and managing their accounts that the lead generation is the last thing on their mind. 

Let your sales team do what they do already and help them sell even better by providing them with targeted leads. All the contacts of potential buyers will be delivered on a plate to your sales people, they just have to put the wheels in motion afterwards. 

3. You Are Not Sure Who To Target

Some CEOs and sales reps just don’t know who their target accounts and potential buyers are. They have a vague idea, sometimes even a wrong guess that their buyers might be some companies they envisioned as clients or worse all the companies they can think of. 

This is simply never the case. If your CEO or Sales are not sure about the target companies, outsourcing lead generation can help them by researching the market or you can research market yourself and just hand over the Buying Persona to an expert that will know how to find similar companies. Whatever the case – don’t spray and pray, but know exactly who is likely to buy your service or product.

4. You Are Not Good At Writing Emails And Selling

Some people are just not born for compelling writing or convincing conversation that sales requires. Full stop. They may be shy or just have no wish to be good in that kind of thing. 

A CEO should not feel obligated to compose a perfect sales email, but only to provide enough information for its sales to know the ins and outs of a business. CEO needs to focus on product and service development and leave the sales outreach to the professionals.

Hand over the sales tasks to someone who will do it with their eyes closed and stop stressing about the things that you don’t like to do.

5. You Want To Rise Above Your Competition

Struggling with dozens of similar companies that have the same product or service as you do is a daily trouble of every startup. You all work hard and you all target the exact same customers more or less successfully. 

But the ones doing lead generation will always be step ahead of their competition. They know precisely who the decision makers are and they know exactly how to approach them in order to sell.

6. Most Potential Customers Don’t Trust You

Startups that are new on the market have the task of evolving and at the same time gaining trust. You are not Apple and people won’t rush to queue in front of your door at the very sound of your name, but instead you have to work hard to introduce yourself and convince them that you are worth their time. 

Lead generation can help you reach the right people and target the messaging so you spark their interest at the very first cold campaign. Explaining to the right people who you are, your industry experience and knowledge and how they can benefit by hiring you is a sure way to gain their trust.

7. You Keep Contacting Old Customers And Prospects

Even startups that have been on the market for a while, sometimes feel like they have reached everyone they possibly could and that they followed up with old contacts so much they risk a restraining order. 

But there’s always room for new customers! You just don’t know who they are. Don’t spam your old buyers, but dig deeper for new ones that have probably never heard of you but could use your expertise.

Use lead generation to find customers you never thought about or imagined as your buyers. 

8. You Want To Reach Out But Not To Spam

Owing to lead generation you can use remarketing as a subtle reminder of your existence and expertise to all of contacts that visited your website. Wherever your prospects go (Google, YouTube, Facebook, etc) they will be greeted by your ad telling them that you can solve their problem without being too pushy. Almost all reputable social networks now provide the option of uploading your lead list into your ad’s targeted audience, so why not use this option? This can work for your old customers as well.

Can a Startup Do The Lead Generation By Itself?

Sure, you can try to do it yourself with downloadable content and webinars through the Inbound sales method. However, make sure you have enough time for it and a dedicated team so that you don’t stray from your core business. 

Keep in mind that you will most likely end up with tens or hundreds of leads that never intended on buying from you. You will have to reach out to them and test continuously for weeks maybe even months to determine the right from the wrong ones.


Hopefully, by now, you understand why lead generation is a good choice for your startup.

We helped startups such as Twilio, Wiredrive and Guidance grow their sales with lead generation – let us know if we can help you.

If you’re still unsure of how the lead generation works – we offer a free sample that can help you understand it better.


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