4 Genius Marketing Tactics Proven to Drive Leads for Businesses on a Budget

How to generate leads on a budget

The best marketing plan will vary depending on your business type, target audience and goals. If you don’t have a big budget to work with, here are some low-cost marketing ideas to get you started generating sales leads.

1. Start using Google Ads.

When someone searches on Google — whether for a dentist, restaurant or plumber — they see three things right away: paid results at the top, Google Maps listings below that, and organic results underneath. Since most clicks happen on the first page, Google Ads can be one of the fastest and most cost-effective ways to put your business in front of potential customers.

• How it works: Google Ads is a pay-per-click (PPC) platform. You bid on keyword phrases, and your placement depends on both your bid and the quality of your ads. For example, according to Google’s Keyword Planner Tool, if you’re a dentist in Dallas bidding on “Dallas dentist,” Google estimates a top-of-page bid of $7.61 to $17 (based on historical auction data). Higher bids usually mean better placement, but factors like the relevance of your ad and the quality of your website also matter.
• What to expect: According to WordStream, average Google search ads achieve a 3.17 percent click-through rate (CTR) and a 3.75 percent conversion rate. These benchmarks can help set realistic expectations for your campaigns.

Best practices for Google Ads include the following:

• Group keywords into focused ad sets: These are called Single Keyword Ad Groups (SKAGs). By grouping similar searches, you can write ads that feel highly relevant, which usually means better click-through rates and lower costs.
• Use negative keywords: This simply tells Google when not to show your ad. For example, if you’re a plumber, you might exclude the word “jobs” so you don’t pay for clicks from people looking for work instead of services.
• Add ad extensions: Extensions are little extras — like your business location, phone number or a “call now” button — that make your ad bigger and more useful. They also boost visibility and click-through rates at no extra cost.
• Review your keywords regularly: Updating your list once a week helps you drop underperformers and discover new opportunities. Google’s automated bidding tools can also adjust bids for you, making sure you’re competitive without overspending.
• Implement local strategies: Running ads in Google Maps is a great strategy if your business serves a local area. They’ll appear in the Maps app and on Page 1 of Google’s search results. Linking your Google Business Profile adds credibility by showcasing your reviews, and enabling the location extension makes it easier for customers to visit or call.
• Avoid common mistakes: Don’t ignore match types — broad matches can drain your budget. Skipping ad extensions reduces clicks, and failing to set up conversion tracking makes it impossible to measure ROI.
• Measure your results: Set aside a few hours a week to track impressions, click-through rates, conversions and cost per conversion. Regularly tracking KPIs — ideally weekly rather than quarterly — helps you make faster decisions and improve marketing ROI by correcting course sooner.

2. Run coordinated ads on Facebook and Instagram.

Social media is where people spend a big chunk of their day, so it’s a natural place to reach new prospects. Facebook marketing strategies are ideal for small businesses, and because Facebook owns Instagram, you can run social media marketing ads on both networks simultaneously through Facebook Business Manager. To do this effectively, you’ll also need an Instagram business account. Like Google Ads, it’s a pay-per-click system, so you only pay when someone interacts with your ad.

• How it works: You set a daily or campaign budget, cap your total spend, and decide how long the ads should run. For example, you could run a two-week campaign for $150 and only pay for the clicks you receive.
• What to expect: According to WordStream’s Facebook Ads Benchmarks, the average cost per lead from Facebook is about $21.98, with ads averaging a 2.53 percent CTR and about $1.88 per click. On Instagram, performance looks a little different: Sprout Social reports average ad conversion rates of 1 to 2 percent. Note that these are broad benchmarks. Your actual results will vary depending on your industry, audience and creative quality, but they help set realistic expectations.

Best practices for Facebook and Instagram ads include the following:

• Match your ad to the landing page: If your ad promotes a discount or service, make sure people land on a page that delivers exactly what they clicked for, with a clear call to action.
• Test audiences: Try different demographics and interest groups to see which segments generate the most clicks and conversions.
• Test your creative elements: As with many digital marketing strategies, it’s wise to run A/B tests on images, videos and calls-to-action to see which versions pull in better results.
• Rotate your visuals: Update your creative ad elements every couple of weeks to prevent “ad fatigue,” which can drive costs up over time.
• Use targeting tools: Use Facebook’s and Instagram’s built-in Audience Insights features to refine your audience and keep campaigns cost-efficient.
• Stay targeted: One mistake small businesses often make is casting too wide a net. For example, targeting “everyone in your city” might drive clicks but few conversions. Narrowing to clear customer personas usually reduces your cost per lead and improves quality.
• Measure results carefully: Track reach, engagement, CTR, conversion rate and cost per conversion. Most ad platforms let you see which campaigns perform best, but you can also connect your ads to tools like Google Analytics to see which ones drive actual leads or sales. Checking your results weekly gives you a chance to fine-tune before costs get out of hand.

3. Contribute your expertise to blogs and magazines to build credibility.

Public relations (PR) often gets overlooked because business owners are busy running day-to-day operations. But taking time to showcase your expertise can improve your business reputation while building credibility, trust and name recognition — and other than your time, it doesn’t have to cost a thing.

There are two main ways to get PR coverage: a publication writes a story about you, or you contribute content directly as a guest article or expert quote.

A great starting point is contributing articles or insights to outlets that your target audience reads or listens to. Think business blogs, local newspapers, trade magazines or even podcasts. The key is to pitch an idea that solves a problem your customers care about. For example:

• A plumber might write about preventing frozen pipes in the winter.
• A dentist could compare orthodontic aligner options.
• A real estate agent might highlight home design choices that boost sales.

Best practices to get started with this type of PR strategy include the following:

• Find the best publications: Research where your competitors have been published, then identify gaps where you can add unique insight. This helps position you as a thought leader without repeating what’s already been said. You can usually find the contact information for editorial staff on a Contact or About page on the publication’s website.
• Position yourself as an expert: Look for platforms like Qwoted, where journalists post expert requests. Responding to these can get you featured in stories without having to pitch cold. Sometimes your contribution will be a bylined article, other times just a quick quote in a larger story; both boost your visibility. You can sign up for Qwoted for free and receive press opportunities tailored to your expertise.

To measure the success of this strategy, track mentions of your business, watch for spikes in website traffic after a piece runs, and note when new customers mention they saw you in an article. Setting up Google Alerts for your name or business makes monitoring easier.

4. Use direct mail to reach consumers.

Direct mail, often called “snail mail,” may feel old-fashioned, but it’s still one of the many offline marketing methods that are still effective in the digital age. With average response rates between 5 and 9 percent, it can compete with (and sometimes outperform) online ads.

The main cost of direct mail is postage, which the U.S. Postal Service sets. You can control expenses by choosing different delivery options:

• Every Door Direct Mail (EDDM): This is the cheapest method, because every mailbox along a route gets your postcard. The downside? You’ll likely reach many people outside your target audience.
• Resident/Occupant lists: This option is a middle ground. You can still mail to every door on a route, but you choose routes based on demographics like household income, age or family size.
• Fully targeted lists: This is the most precise but most expensive option. You only mail to households that match specific demographic criteria, even if it means paying more per piece.

Best practices to get started with a direct mail strategy include the following:

• Prioritize your mailing list: Build or buy a high-quality mailing list; reputable providers should guarantee at least 90 percent deliverability.
• Make it personal: Personalize your direct mail postcards and letters with relevant content that resonates with recipients.
• Keep it consistent: Consistency matters more than one big send. Aim to reach prospects at least three to six times within three months to stay top of mind.
• Consider working with a marketing company: Some marketing companies can coordinate direct mail with your digital ads, creating an integrated campaign that reinforces your message across multiple channels.

To measure the success of your direct mail campaigns, track response and conversion rates, and compare your cost per lead to what you pay for digital channels. Additionally, use unique phone numbers or landing page URLs on each campaign to know exactly which mailings drove results.

Costly lead generation mistakes to avoid

Even the best lead-generation efforts can fall flat if you make these common missteps:

Not diversifying lead sources

One of the biggest mistakes is relying on a single lead source. If all your efforts go into one channel, you limit your reach and lose the ability to compare performance. For example, if you focus only on LinkedIn but Google Ads would actually deliver stronger results, you’re leaving potential conversions on the table.

A better approach is to diversify. Use multiple sources — such as social networks, your website and third-party databases — so you can identify which ones bring in the highest-quality leads. This mix gives you more insight, flexibility and a stronger overall strategy.

Not verifying your leads

Another common mistake is failing to verify the leads you collect. Before you start sending messages, take time to check that each email address is valid and in use. Some addresses may no longer work, the domain may be inactive, or the contact may simply never check that inbox.

If you don’t take pains to build a quality email list, your email marketing campaign results may look worse than they really are, and you’ll waste money and effort contacting dead ends. Verifying leads upfront is far cheaper and more efficient than blasting emails to invalid or inactive addresses.

Not segmenting your leads

While it’s always in a business’s best interest to have as many leads as possible, it’s more important to have a smart, laser-focused approach to communicating with these leads. Sending the same generic email to everyone often results in being ignored. By segmenting your list and tailoring your introductions or messages, you’ll earn higher engagement and more conversions.

According to HubSpot, segmented email campaigns enjoy 30 percent more opens and 50 percent more click-throughs, making segmentation one of the most effective ways to improve your results.

To effectively segment your market, you need data about the people behind the email addresses. Start with basics like geographic location or company size, then expand as you gather more information. Over time, deeper segmentation lets you build stronger connections and send messages that truly resonate.

Best CRMs for driving and managing leads on a budget

As you start collecting new leads, you’ll need a system to organize and follow up with them. Customer relationship management (CRM) software makes it easier to track contacts, see where your leads are coming from, and manage them through every stage of the sales process.

The best CRM software offers reporting tools, automation features and affordable (and even sometimes free) plans to get you started. Your CRM can help you track the following essential KPIs:

• Lead source and attribution
• Conversion rates by channel
• Cost per lead by source
• Time from lead to customer
• Customer lifetime value

Here are a few budget-friendly CRM options worth considering:

• Pipedrive: As we note in our Pipedrive review, this CRM lets you store all your leads in one place and segment them by factors like industry, company size or location. Its automation tools simplify tracking each stage of the sales pipeline.
• HubSpot: HubSpot’s free CRM includes basic lead management tools with no upfront cost. Our HubSpot review explains how this platform’s advanced reporting and integrated marketing features (like email and ad management) make it easy to run and measure campaigns.
• Salesforce: Known for its flexibility, Salesforce lets you customize the platform to fit your needs. We explain in our Salesforce review that even the introductory plan includes lead management, contact management and email integration. 

Start driving leads

Every business must find a marketing formula that works for its needs without breaking the bank. By following the budget-friendly tactics above and keeping an eye on benchmarks and measurements, you’ll be well on your way to generating leads and turning them into customers.

Be sure to track your key performance indicators weekly, run regular competitive analyses, and steer clear of common pitfalls that drain your budget without delivering results.

Jamie Johnson and Sean Peek contributed to this article.