Are lead generation companies worth the investment?

To see if lead generation companies are worth it, start by defining “worth it”. Can they bring in enough sales opportunities to cover their price? Can they liberate your sales team enough that they can close more? Can they get you appointments with your dream clients when one closed deal will feed you for a year? Or all of the above? 

ROI for lead generation outsourcing will depend on your goals, your ability to align with the agency strategically, and the closing skills of your sales reps.

The short answer is that it has to be worth it.

In this post, we’ll help you define your expectations and see whether lead generation agencies can justify their price by creating business value for your company in particular.

What is your goal in hiring the lead generation services?

Once upon a time, there was a manager, and out of the blue, they decided to x100 their number of leads.

This is not how the story goes. You are considering a lead generation agency because you are struggling to reach some goal with the resources you have. Depending on what that goal is, it will make more or less sense for you to take the lead generation agency route. 

So, what is your goal?

Goal 1: Increase the number of leads

The problem

You’re generating leads, but your pipeline isn’t robust enough to consistently meet quotas. While your marketing efforts are bringing results, there’s a need to increase those numbers, fast.

How do lead generation agencies solve it?

The first way to get more appointments with leads is to enlarge the database. The second is to increase the lead-to-appointment conversion for those already in your database (a very tough task). The third — our preferred way — is to build a high-quality database and improve its processing simultaneously. The strength of the agencies here is that they know how to quickly set up the infrastructure and processes needed to fix the dried-up pipeline. 

Possible risks:

• Focusing too much on quantity can lead to getting low-quality leads out of your ICP and wasting your budget.
• Inexperienced agencies may lack knowledge for improving processes and conversions.  
• Irrelevant or outdated databases can compromise your lead generation channels, specifically email, by spiking the reported spam levels.

Is it worth it? 

It could be, especially if the agency can provide leads that match your ICP. To maximize this potential, establish strict qualification criteria in advance.

This strategy is most effective when paired with a bulletproof value proposition, a polished sales process, and effective closing techniques. Consider the costs associated with filtering out unsuitable leads and factor in the resources needed for email campaigns and social media outreach. Ultimately, you’ll need to convert those leads into scheduled demos.

Case study

Lion Energy, a clean energy storage manufacturer, aimed to achieve a $10 million sales goal. Belkins used a multi-faceted approach: Lead research was followed by an email outreach strategy. The latter included domain warm-up, email cadences, and iterative refinement of the target audience. We adjusted targeting parameters, removed underperforming titles and markets, and enriched the database with new leads to increase relevance.

The 10-month campaign brought 137 confirmed appointments. A high 85% open rate highlighted the effectiveness of Belkins’ deliverability strategies and the quality of the lead list. Furthermore, successful re-engagement campaigns revived previously inactive leads.

Goal 2: Get better close rates with higher-quality leads

The problem

The leads you receive are not converting into sales. You want potential customers who are later in the sales cycle and closer to a deal. Your ICP could also require fine-tuning.

How do lead generation agencies solve it?

Expert agencies bring a strategic perspective. They analyze your data and the market to narrow down high-value targets. True experts will find the ICPs that will better convert into new revenue and reach them with refined sales messages via advanced strategies. You’ll start seeing more account-based marketing (ABM), predictive analytics, and personalized targeting strategies.

Possible risks:

• The agency might be unable to deliver results or may exceed the cost beyond the point of profitability. 
• Unethical methods can harm your brand’s reputation among decision-makers.
• A poorly defined ICP and inaccurate targeting may lead to a wasted advertising budget.

Is it worth it?

Definitely, if the agency can clearly enhance your lead quality and conversion rates.

This approach is ideal for businesses that prioritize quality over quantity and have a well-defined vision for their ICP. We suggest using outbound strategies that emphasize personalized outreach and engagement here.

Case study

Celerway, a telecom business with limited resources, wanted to expand its market for its 5G routers. Struggling to reach decision-makers within its target market, it partnered with Belkins. We developed an ABM strategy with highly personalized messages crafted for a hand-picked list of ideal clients. This approach managed to bring 97 booked appointments in 10 months — a 144% achievement of KPIs.

Success wasn’t solely about quantity; Celerway rated 56 of the appointments as “very good” or “perfect fit.” This was a great payback for identifying highly specific niche clients and conducting extensive manual research. 

Goal 3: Outsource manual tasks

The problem

Your sales team is spending too much time on research, outreach, and qualification, and you want them to focus more on closing deals.

How do lead generation agencies solve it?

Lead generation agencies can take over the time-consuming outreach process so your team can focus on what they do best: converting leads and closing sales. This will lead to more sales and faster revenue.

Possible risks:

• If metrics and communication aren’t set up properly, it can lead to misalignment between lead gen and sales.
• Not sharing customer engagement strategies can lead to mixed messaging and lower conversion rates.

Is it worth it?

Very much so, as the increase in sales revenue usually outweighs the cost of outsourcing. We at Belkins recommend that our clients delegate everything but closing the deals. This is especially good for companies with solid sales processes and enough resources.

Case study

GE HealthCare, a global medical technology leader, had important industry events upcoming, a great opportunity to proactively generate some high-quality leads. Yet, while their internal team was great at keeping clients, they didn't have the skillset for developing new business in a limited time. 

Belkins worked closely with the internal team to select only qualified, high-value attendees, crafting and targeting personalized outreach campaigns. After analyzing and prioritizing the attendee lists, we reached out with pre-tested messaging and proactively scheduled meetings with the prospects at the GE HealthCare stand at specific times (this helped the client to plan the workload for sales executives.) We managed to book 135 in-person meetings at four major medical conferences over seven months. An impressive number, and a more than 400% increase from the original goal. 

A batch of qualified sales opportunities helped broaden GE HealthCare's sales pipeline, while the internal team was able to focus on sales without taking on extra tasks.

Goal 4: Achieve steady pipeline growth

The problem

You have a high close rate but lead generation comes in bursts, so you have cycles of busy and quiet times. You need a consistent pipeline.

How do lead generation agencies solve it?

Agencies reach and maintain a steady flow of quality leads to get a consistent sales pipeline. They diversify lead gen channels, automate funnels, and find solutions for seasonal industries. A constant flow of leads and stable sales means you don’t have to rely on demand spikes.

Possible risks:

• Single-channel dependency limits growth and increases risks.
• The agency’s approach may not align with your overall strategy.

Is it worth it?

Yes, if the predictability and consistency of the pipeline outweigh the cost. This approach is good for companies looking for steady growth, not rapid expansion.

Case study

JourneyDXP, a provider of innovative digital sales rooms, struggled with inconsistent lead generation. Their outreach to enterprises brought fluctuating results.

Belkins tailored a strategy for specific titles within large Salesforce-using companies. We also used hands-on demos and strategic CTAs to improve engagement.

Over 17 months, this approach resulted in 126 appointments, maintaining an average of 8–10 per month. Even facing challenges like low email deliverability and a tough economy, we met all KPIs and built a steady lead pipeline for JourneyDXP. 

Goal 5: Increase average deal size

The problem

You’re successful in sales, but your deals are primarily in a low-ticket market. To enhance profitability, you aim to transition to higher-value leads.

How do lead generation agencies solve it?

High-value prospects need a more strategic and consultative approach. Agencies focus on identifying and targeting these prospects through refined lead qualification, tried-and-true approaches, and personalized outreach. Beyond just connecting you with high-ticket clients, they help hone your value proposition for a more lucrative market and provide training for your team to close larger deals effectively.

Possible risks:

• Outreach to high-value prospects comes with significant costs.
• You will need a robust sales process and resources to secure large contracts.
• Poor vetting of prospects may lead to wasted time and money.

Is it worth it?

Yes, if the higher deal values justify the costs. 

Success here depends on having a strong value proposition. It also requires the agency to find and reach ideal prospects at the right sales stage. 

Prices vs. results: choosing the right pricing model

Ultimately, the answer to “Is it worth it?” lies in a simple formula: money made minus money spent, a.k.a. return on investment (ROI). One way to achieve good ROI for your business is to pick the agency with the right pricing model. 

Different models have different levels of commitment and reward, fitting various business needs and goals. We gathered the standard options with the approximate cost brackets below. 

Pricing models

1. Retainer-based pricing

A fixed monthly fee for ongoing services. In return, you receive a dedicated team and consistent effort. A steady runway allows for strategic planning and continuous improvement. 

• Possible risk: Higher upfront cost compared to some other models; requires a commitment to a longer-term contract.

📚 Read more: B2B appointment setting costs and pricing models explained 

2. Project-based pricing

A fixed fee for a specific campaign or project. Defined deliverables serve as KPIs. Limited commitment provides flexibility for one-off needs or custom marketing initiatives.

• Possible risk: Less flexibility for changing market conditions. It may not provide consistent leads, and there is less room for optimization and relationship building.

3. Performance-based pricing

Payment is tied to achieving pre-defined metrics (leads, appointments, etc.).

Possible risks:

• Numerical metrics can easily shift focus to quantity over quality. Our experts do not recommend this approach for the upper market. In case you’d want to pick this route, define success accurately, using the lead qualification parameters. 
• A significant risk is unpredictable variation in monthly spending.

4. Percentage-based pricing (revenue share)

You pay a percentage of the revenue from deals closed from provided leads.

• Possible risk: This can be a substantial percentage of revenue (5-20%), potentially impacting profit margins. Requires careful contract structuring to avoid paying for canceled contracts or refunds. Higher risk for the agency (hence, the potential for higher prices).

Typical cost ranges for lead generation services:

• Retainer: $2,000 to $10,000+ per month (depending on team size, services scope, and niche complexity)
• Project-based: $1,500 to $15,000+ per project (depending on project scope, niche complexity, and deliverables)
• Performance-based: $20 to $200+ per lead or $50 to $500+ per appointment (depending on lead quality, target market, and complexity)
• Percentage-based: 5–20% of closed deal revenue

Linking cost to results

The proof of effective lead generation isn’t in the number of leads. The quality and contribution to your sales pipeline matter more, so focusing on cost-per-lead without considering conversion rates misses the bigger picture.

Let’s make a simple comparison.

Exhibit A. You are a paper-selling company. Every business that uses paper (i.e., all of them) might be your lead. You hire a lead gen agency. They bring you Yellow Pages with tens of thousands of contacts of low-level leads ranging from office admins to management assistants. 

Exhibit B. You’re selling oil drilling equipment. You would not expect tens of thousands of leads — your market is not that big. You hire a lead gen agency. They bring fresh contacts of C-level decision-makers with shopping lists for their upcoming projects.

Clearly, you wouldn’t expect to pay the same for lead A vs. lead B. 

The cost depends on the size of your target prospect, and heavily — on the industry, with the most competitive niches like insurance hitting a neat $1,500 per appointment. Here is a scorecard with the average costs per appointment for companies who would want to run outbound lead generations: 

Cost per appointment by industry

We’ve developed this list of the average price-per-appointment by industry based on data from hundreds of Belkins’ projects.

There are other factors to take into account, too:

• The geographic location of your leads (the U.S. being on the more expensive side)
• The size of your target audience (if you sell to companies with 11–50 employees and up to $1M in revenue, costs are different than when selling to an enterprise)
• Your digital footprints (your overall marketing game can make the difference)
• Available case studies and offerings (early, not-well-developed offers have higher costs per appointment)
• Your value proposition (how relevant it is to the desired ICP)
• If it’s a new audience or one you have already worked with (for awareness stages)

Based on these factors, an experienced agency will give you an upfront assessment of the time and resources required to start bringing in the leads. 

But don’t be too quick to corral and happily count these leads. We recommend keeping an eye on other criteria, not just the numbers, to see if the lead generation efforts are working for your business.

Meaningful metrics for measuring the effectiveness of lead generation:

• Lead quality: the quality of leads based on defined criteria (e.g., job title, company size, budget, buying stage)
• Lead-to-demo ratio: the percentage of leads that convert to product demos
• Demo show-up rate: the percentage of scheduled demos that take place
• Demo-to-close ratio: the percentage of demos that result in closed deals
• Pipeline creation: the overall increase of your sales pipeline
• Projected new revenue: the amount of money your business expects to make
• Deal velocity: the time from lead to signed contract (assess if the agency shortened your sales cycle)

Tracking metrics like the leads’ buying stages and conversion ratios helps accurately assess the effectiveness of the lead generation efforts and optimize your campaigns. 

When to avoid lead generation agencies

While lead generation agencies might be advantageous for many companies, they aren’t always the best solution. Consider trying out your other ideas if:

• You have a large, experienced in-house team
• You have a limited budget
• You prefer having complete control

With this set of precursors, you may want to explore new outbound and inbound channels, such as ads and events, that you have not previously explored.

You may also consider investing in modern lead generation tools to enhance your in-house team and give them a shortcut to new markets or databases. 

Do’s and don’ts of working with a lead generation agency

If you choose to go with a lead generation agency, pick the provider with proven experience in your field and be open. Do not expect to close new deals in a month — trust the process and be there to help fine-tune the campaign.

Belkins’ experience shows that clients start seeing an inflow of eligible leads (on average) in the third month. 

So, are lead generation agencies worth it, and why? 

As with most business decisions, the answer depends on your specific circumstances.

B2B buying has shifted, and traditional marketing approaches have become ineffective. In contrast, omnichannel approaches with data-driven strategies improve lead quality, conversion rates, and ROI.

Lead generation agencies know their way around omnichannel principles. They create and execute multi-touch campaigns that traditional in-house teams still need to master. Using different channels (LinkedIn, email, calls, etc.) in sync creates a better buyer experience, drives better leads, and shortens sales cycles.

So, we can answer the central question — “Are lead generation companies worth it?” — with a “Yes*. * Conditions apply”.

The key is choosing an agency like Belkins: We will complement rather than replace your in-house team and align with your strategies and goals.