Comparison between lead generation with a focus on MQL with Demand Generation with a focus on Revenue

First of all, let’s talk about the focus.

A lead generation campaign is focused on getting more prospects and leads. Usually, you need a lot of those because they are usually not a very good fit and might have intent or need to buy. That is why you have to generate hundreds of them. You focus mostly on top of the funnel metrics.?

Demand generation is different. You focus on revenue and as a part of that, sales qualified demos or sales qualified opportunities or product qualified opportunities if you are product-led.?Your focus is very clear - you want customers but even more important revenue.?

In my experience, lead generation campaigns convert to customers at the rate of 0.2 to 0.6%. Demand generation campaigns (focus on demos and revenue) convert at a rate of 11 to 16%. Now, let's do the math:

Despite lead generation collecting 10x more leads, demand generation converted 5x more customers. Quantity vs quality.?

Long-term strategy vs. Short-term strategy?

Demand generation is a long-term strategy that takes at least 2 to 6 months to work. This might seem like a long time, but it's important to remember that demand generation isn't a quick fix—it's an investment in your company's future.?

Although it does seem like a long time, I recommend demand generation to b2b startups without product-market fit. Why?

It is incredibly important to nail and research your ideal client profile from the very beginning and getting a lot of leads aka lead generation will take away your focus.?

Instead of getting a lot of low-level low-intent customers who won’t give you the feedback to improve your offer, try to focus on a fewer number who will have deeper conversations with you about their pain.?

You can't just start a conversation with a stranger and say, "Hey, you need this."

They have to get to know you first. They have to understand what's going on in their life and the problems they're trying to solve.

And while they're getting to know you, they're also figuring out what kind of person you are—are you someone they can trust? Are you someone who will help them? Are you worth talking to?

It takes time for buyers to build this trust and understanding before they'll buy from you.

And as well as:

• Encounter the issue within the context of their company.
• Emphasize finding a solution to this issue.
• Make sure that all of the relevant parties are on board.
• Prepare a spending plan to address this issue.
• After finding your website through organic and paid search or direct methods, customers who want to buy your product or service should first see it, then submit a request for a demo or an appointment with a sales representative, and then make their purchase.

The first step to generating leads is understanding the difference between lead generation and demand generation.

Lead generation is a short-term approach that attempts to gather a large number of leads with little or no purchasing intent as rapidly as possible using organic and paid channels. This strategy may or may not affect revenue, and in my experience, it does not grow your revenue because you are prioritizing the number of leads and not your company’s revenue.?

Demand generation, on the other hand, is a long-term approach that focuses on creating interest in your product or service through content marketing over time. It’s about creating demand for your business by educating people about what you offer and why they should buy from your company instead of someone else's. It also works well as a shorter-term solution and makes wonder if you build it consistently.?