If you’ve been in business for any length of time, you have probably heard the term lead magnet as a marketing tool. But what is a lead magnet? How do you know when to use it? And why is it important?

Over the next month, we’ll be answering those questions and helping you create an ideal lead magnet that targets customers.

What is a Lead Magnet?

At its core, a lead magnet is an irresistible offer that you present to prospects in exchange for their contact information. It’s a tool that grows your email/text/address list, enabling you to stay in contact with potential customers and gain new leads.

A lead magnet is typically a freebie, discount, or other exciting bonus that your audience is willing to trade for. The more information you request from people, the more likely they are to abandon the lead magnet. But when you simply want to grow a list, a good lead magnet is invaluable. They sign up because they want your free guide, webinar, discount, ebook, or early access to something you are about to launch.

Lead Magnets Are Essential Because They:

Provide value in advance of a purchase

A lead magnet shows your prospective customers that you have something to offer. It demonstrates that you have information, graphics, or other digital features that they want more of. If they find your content valuable and easy to understand, your target audience will know there is more worth paying for. Ultimately, they will convert from visitor to loyal brand follower.

Build authority

Taking the time to create a solid lead magnet can do more than just entice customers to buy from you. It can also lead them to trust your brand. Take the opportunity to demonstrate that you know your field as well as–if not better than–your competitors.

When you establish your company as an authority in your space, your lead magnet can reflect that. You can use your free guide to help clients learn something new. Or you can give away a free webinar that actually walks them through using your product or service. Let them see that you don’t just have something good behind the paywall. You have the best.

Build trust

Authority builds trust, but so does reciprocity. Consumers trust brands that take time to consider what they want, what they need. Creating a lead magnet shows that your business really wants to be there for your customers, not simply take their money. It’s a type of rapport that goes beyond word-of-mouth recommendations. It’s a direct understanding that the customer is in need of something you can provide. And if you can provide something small for free, all the better.

Help you get prospects into your funnel

Ultimately, businesses want to use lead magnets for their funnel. Yes, it’s important to build brand loyalty and to gain the trust of the consumer. But you still have a business to run. That’s why it’s so important to glean those email addresses in return for your lead magnet. You are building your audience and making sure customers think of you first when they have a need.

Need An Example?

Curious to see some lead magnets? As it happens, Planify™ has a free download below (i.e. lead magnet) for you on this very topic. And don’t forget to read through the rest of our posts in this series for lead magnets that stand above the rest.