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Millionaire Mathematics: How to Hack Your Reg CF & Reg A to $1M+

by

Schuyler Hawkins

Allied bombers in WWII hit their targets with less than 7% accuracy. If you’re a marketing professional in charge of lead generation, you know the feeling. Google Ads only hit their target (generate a lead) 3.17% of the time, and there’s no guarantee that converted lead is a qualified prospect. Worse, the average cost to generate a lead through Google Ads is $60 according to SurveyAnyplace.

If you're a business professional conducting an equity crowdfunding raise, these numbers aren’t just inefficient, they’re fiscally prohibitive. Using Business Insider’s equity crowdfunding calculator, only 5% of interested leads convert to investors (or 1 out of every 20 leads generated through Google Ads). That’s a true average cost per investor of $1.2k.

Enter LeadLoft, with a cost per qualified lead of $0.06. Of those qualified leads, 11.3% would be expected to convert to interested upon engagement based on industry averages. Once interested, 5% would be expected to become investors. Let’s do the math:

The average Reg CF $1.07 million raise roughly requires 1,250 investors with an average investment of $856. For Reg CF, LeadLoft offers lead packages of 36k and 120k. Based on the math above, 36k leads would be expected to generate 203 participating investors for $174,110. 120k leads would be expected to generate 678 participating investors for $580,368.

The average Reg A+ $50 million raise roughly requires 12,500 investors with an average investment of $4k. For Reg  A+, LeadLoft offers a 600k lead package. 600k leads would be expected to generate 3,390 participating investors for $13,560,000.

In addition to the improved ROI, LeadLoft’s ability to generate these leads is instantaneous. LeadLoft also integrates with one’s pre-existing CRM through Zapier and comes with deduplication technology that ensures one never pays for a lead they already have.

Shouldn’t our technology be more precise in 2019 than it was in 1945? To get started I may be contacted at schuyler@leadloft.io.