Lead Generation
Growth StrategiesLead generation is the marketing motion of capturing the contact details of people who fit a target audience and have shown some interest in the company. It is the oldest digital marketing discipline and the source of most of the metrics B2B teams still report on (MQL, SQL, cost per lead).
It is also the discipline that has aged most awkwardly. The original premise (collect emails, hand them to sales, sales calls them) misses the modern reality that buyers research extensively before engaging, and a captured email rarely correlates with buying intent. Most mature B2B teams have shifted to demand generation, which keeps the capture mechanics but de-prioritizes lead count in favour of pipeline contribution.
Contents
Key takeaways
- Cost per lead in B2B SaaS averages 200 to 400 EUR on paid channels and 50 to 150 EUR on inbound channels once content compounds.
- Lead volume without lead quality wastes sales time. Healthy programs measure cost per qualified lead, not cost per lead.
- Modern B2B teams have largely replaced lead generation with demand generation, which prioritizes pipeline and revenue over raw lead count.
What is lead generation?
Lead generation is the process of attracting potential buyers and capturing their contact information so the sales team can reach out. The captured contact (a lead) typically includes an email address, often a name and company, and sometimes a job title or stated intent.
Leads usually enter the system through one of:
- Gated content downloads (whitepapers, ebooks, templates).
- Webinar or event registration.
- Newsletter signup.
- Demo request or contact form.
- Free trial signup.
- Outbound prospecting that captures interest.
Not every lead is the same. Most B2B teams classify leads by stage: marketing-qualified lead (MQL), sales-accepted lead (SAL), and sales-qualified lead (SQL). Each stage has tighter qualification criteria and a higher conversion-to-pipeline rate.
How do you generate leads in B2B?
Five tactics produce most B2B leads:
- 1.Content offers. A whitepaper, template, or research report gated behind a form. Higher-value content attracts higher-intent leads, even at the same volume.
- 2.Webinars and events. Registration captures contact details and the event itself qualifies engagement.
- 3.Free trials and freemium. The lowest-friction lead capture in B2B SaaS, with the highest conversion rate to opportunity because the user has experienced the product.
- 4.Paid advertising with lead capture. LinkedIn lead-gen forms, Google Ads with form extensions, retargeting campaigns. Highest cost per lead, highest control over volume.
- 5.Outbound prospecting. BDR teams researching ICP-fit accounts, reaching out, and capturing meetings. Highest cost per lead but most predictable and most targeted.
The healthy mix varies by stage. Early-stage SaaS leans heavily on outbound (no inbound has compounded yet). Mature SaaS leans heavily on inbound (content and product-led signups produce most leads at low marginal cost).
Lead quality vs quantity
The single biggest lead-generation mistake is optimizing for volume. A team judged on lead count will produce thousands of low-intent contacts that the sales team cannot work efficiently.
The correction is to measure cost per qualified lead, not cost per raw lead. Three numbers tell the story:
- Cost per lead (CPL): total spend divided by total leads.
- Lead-to-MQL rate: percentage of leads that meet marketing-qualified criteria.
- MQL-to-SQL rate: percentage of MQLs that sales accepts as actively pursuable.
Multiplied together, the three give cost per SQL, which is the metric worth optimizing. A campaign with 200 EUR CPL and 30% lead-to-MQL × 50% MQL-to-SQL produces SQLs at 1,333 EUR each. A campaign with 100 EUR CPL and 10% lead-to-MQL × 30% MQL-to-SQL produces SQLs at 3,333 EUR each, despite the lower headline CPL.
Lead generation vs demand generation
Lead generation is older and narrower. It focuses on capturing contacts and judging the program by lead volume and cost per lead.
Demand generation is broader. It includes lead capture but also brand-building, content, ABM, and the upstream work of creating buyer interest before the contact form is filled. Demand generation is judged by pipeline contribution and revenue, not lead count.
Most B2B teams have evolved from lead generation to demand generation in language and metrics. The mechanics overlap heavily; the change is in what is being optimized. A demand-generation team running a content download still captures leads, but the program's success is measured in pipeline created, not forms filled.
Activate your team on LinkedIn
Heyoo helps marketing teams turn employees into authentic, on-brand storytellers, with personalised drafts, a shared calendar, and pipeline-grade analytics.
Frequently asked questions
What's the difference between a lead and a contact?
A contact is anyone whose information you have. A lead is a contact who has shown interest in the company and is being actively pursued by sales or nurtured by marketing. Every lead is a contact; not every contact is a lead.
Are gated whitepapers still effective for lead generation?
Modestly. Gated content still produces leads, but the conversion to pipeline has dropped as buyers have grown more reluctant to give up email for content they expect to be free. Many B2B teams now ungate top-of-funnel content and gate only high-value assets (research reports, ROI calculators, comparison guides).
How much should a B2B lead cost?
Cost per lead in B2B SaaS averages 200 to 400 EUR on paid channels and 50 to 150 EUR on inbound channels once content compounds. The more useful benchmark is cost per qualified lead (CPQL), typically 800 to 2,500 EUR for SMB SaaS and 3,000 to 8,000 EUR for enterprise.