Lead Gen 101: Your First Step to Never Running Out of Customers

Back in 2017, HubSpot found that 61% of marketers said generating leads was their biggest challenge and in all honesty, not much has changed. Even in today’s world of AI tools and endless social platforms, lead generation still tops the list of things that keep entrepreneurs up at night.

But the good news is, lead generation isn’t some dark art. Once you understand how it works, it becomes your most powerful asset. And yes, once you know the rules of the game, it can actually be pretty fun.

Think of it like this: you run a digital marketing agency that helps eCommerce brands grow through organic content. Somewhere out there is a founder (let’s call her Karen) whose sales are flatlining faster than a battery of 1% and she’s Googling “why my Facebook ads aren’t working” at 2am.

Karen doesn’t know you yet - but she needs you. She is what we’d call a lead - a potential customer who’s actively experiencing the problem you solve.

And lead generation? It’s simply building the bridge between the leads problem and your solution. It’s how you connect their late-night frustrations with your very real solutions.

When you get lead gen right, you’ll stop chasing customers and start attracting them. But here’s the deal? It’s not about getting more attention. It’s about showing up to the right people, at the right time, with the right message.

Once you nail that, you’ll stop wondering where your next client is coming from, and start hearing from people who are ready to work with you. Miss the mark, though, and you risk attracting time-wasters or hearing nothing but crickets.

So, how do you make sure you're doing it right? That's exactly what we're breaking down next.

The Lead Generation Funnel Breakdown (Defined and Why Your Business Depends On It)

Let’s go back to Karen, the eComm founder we mentioned earlier. She’s the type of person your ideal lead might be - but she’s not going to go from “never heard of you” to “here’s my credit card” overnight.

People go on a journey before they buy - and that journey is your lead generation funnel. A three-stage journey to be exact. Understanding it is what separates strategic lead generation from just throwing spaghetti at the wall and hoping something sticks.

And, don't worry about the weird sounding acronyms - TOFU, MOFU, BOFU - we get it. It sounds like startup-speak for “I have no idea what the heck I’m doing.” But these are the three moments that can make or break your sales funnel. Let’s decode in plain English, shall we.

Top of the Funnel (TOFU) - Problem Aware

At this early stage, your potential lead is aware that something isn’t working. Our eComm founder knows her sales are dipping, her ads are underperforming, and she needs a more sustainable approach - but she doesn’t yet know what that looks like.

She’s aware of the problem, not the solution. And she definitely doesn’t know about your agency (yet).

Your job? Show up as the helpful expert. Help her articulate the problem and start connecting the dots.

Start by Building Awareness 

• Blog posts with listicle recommendations: "5 Signs Your eCommerce Marketing Needs Better Content"

• Instagram reels or LinkedIn carousels breaking down organic marketing myths

• Infographics that illustrates how poor content can impact conversions

Pro Tip: TOFU content should be “snackable”, valuable and easy to share. Think blog posts, Instagram reels, and YouTube videos - channels your leads are already using to look for answers.

Middle of the Funnel (MOFU) - Solution Aware

Karen is now crystal clear on the problem which is: her content game is off, and that a better organic strategy is the missing link. She’s aware that agencies like yours exist and can help. And she’s researching. In other words, she’s looking for someone to trust.

This is where you build that trust. Show why you’re the best fit for her needs, without sounding like a walking sales pitch.

MOFU Content Ideas - Turning Interest Into Trust 

• Case studies showing how you've helped similar eCommerce brands grow through content

• Educational content (i.e. explainer videos about your process) and what makes good organic content

• Client testimonials or behind-the-scenes snapshots to build credibility

Pro Tip: Email nurture sequences, webinars and educational videos are your best friends at this stage. MOFU leads want proof, process, and personality.

Bottom of the Funnel (BOFU) - Ready to Decide

Now that Karen’s done her homework and she knows agencies, like yours, can help, she’s narrowed down her shortlist. She's ready to make a decision - your job is to remove friction, final objections or hesitations and make saying “yes” feel obvious. 

BOFU Content Ideas - How to Close the Deal and Win the Sale

• Free audits that deliver instant value

• Time-sensitive offers or onboarding bonuses

• Detailed case studies tailored to her niche

• A clear, friendly breakdown of what happens after she signs

Pro Tip: One-on-one interactions convert best here. Sales calls, personalized proposals, and custom audits help close the deal because you're addressing their specific concerns directly. For a digital marketing agency, it’s usually a quick 30-minute audit of your leads business and marketing channels.

Beware: A common trap many entrepreneurs fall into is thinking they can copy someone else's "proven" funnel template and expect the leads to just pour in. One-size-fits-all funnels? They tend to attract everyone and convert no one.

Your Simple Lead Gen Guide: Free & Low Cost Methods that Work While You Sleep)

Now that you understand how the funnel works, let’s plug in the tools that actually move the needle, without draining your time or budget.

1. Content Marketing (Works at Every Stage)

Content marketing is all about delivering value before asking for anything in return. Done well, it pulls your ideal clients through each funnel stage using blog posts, Instagram carousels, YouTube videos, and LinkedIn posts.

The key? Match the content to their stage in the journey:

• TOFU → Educational Reels, short-form blog posts, YouTube Shorts

• MOFU → Detailed blog guides, email sequences

• BOFU → Case studies, how-to webinars, testimonial-driven content

Example (TOFU):Write a blog titled “5 Signs Your eCommerce Ads Are Bleeding Money.” Offer a free “Ad Audit Checklist” as a content upgrade - zero pitching, all value.

2. Social Media Marketing (Best for TOFU)

Use social platforms to start conversations and drive people to your lead magnets through posts, stories, polls, and live content. The goal here is visibility, engagement, and trust - not instant conversions.

Example: TOFU with LinkedIn polls 

Run a LinkedIn poll asking “Which digital marketing strategy frustrates you most?” Then link to your in-depth guide. It engages, collects intel, and drives traffic to your lead magnet.

3. Email Marketing (Perfect for MOFU)

Once you have someone's email address (and they’ve properly opted-in), you can nurture the relationship with personalized content through welcome sequences, newsletters, and targeted campaigns to move them deeper into the funnel to eventually, subtly position your offer.

Example: MOFU with follow-up sequences 

After someone downloads your guide, trigger a follow-up email asking about their biggest marketing struggle. Then invite them to a targeted webinar based on that topic. Tailored = trusted.

4. Lead Magnets (Essential for All Stages)

These are your front-door offers - checklists, templates, guides, quizzes - that people actually want. Make them so valuable they feel like they should cost something.

Example: TOFU with audit checklist 

Offer a downloadable “eCommerce Owner’s Emergency Audit Checklist” in exchange for an email. Promote it across your blog, social, and site popups to steadily build your list. Start nurturing those leads through targeted email sequences after downloadable offerings.

5. SEO Content (Long-term TOFU Strategy)

Organic traffic is the slow burn that pays off for years. SEO content meets your audience right when they’re asking Google for help. Optimize your content so that ideal clients find you when they're searching for solutions through blog posts, landing pages, and resource pages. Focus on problems they're actually googling, not generic keywords.

Example: TOFU with problem-focused keywords 

Instead of targeting broad terms such as "digital marketing," zoom in on pain-point keywords like “Facebook ads not converting” or “why are my email open rates so low?” Then write blog content with titles that directly answer those questions.

Measuring What Matters: The 5 Metrics You Actually Need to Track

You can't improve what you’re not tracking. Here are 5 key performance indicators that will tell you if your lead generation is working:

1. Website Traffic & Source 

Don’t just monitor how many people visit your site, but track where they're coming from. Use Google Analytics to see whether visitors arrive through social media, search engines, email campaigns, or direct visits.Think of it as your business GPS - it shows you which marketing roads are worth taking and which ones are just scenic detours.

2. Click-Through Rate (CTR) 

CTR measures engagement by showing what percentage of people click on your call-to-action. Calculate it by dividing clicks by total views - if your landing page gets 200 visitors and 30 click your lead magnet button, that's a 15% CTR. Low rates often signal weak value propositions or poorly placed CTAs. Email CTR typically sits between 2–5% (around 2–3% for most campaigns), while social media ads average closer to 0.9–1.5% CTR.

3. Conversion Rate

This is where the rubber meets the road, ladies. Your conversion rate tells you if you're attracting serious buyers or just window shoppers who ghost you faster than a bad Tinder date. Calculate by dividing customers acquired by total leads generated over the same period. If you generated 100 leads last month and 4 became customers, your conversion rate is 4%. Rates below 2% suggest you're attracting browsers, not buyers.

4. Cost Per Lead 

Calculate your total lead generation investment (ads, tools, time valued at your hourly rate) divided by leads acquired. If you invested $800 and generated 40 leads, your cost per lead is $20. This helps you identify your most cost-effective channels and set realistic budgets for scaling.

5. Customer Lifetime Value (CLTV) 

CLTV is your crystal ball for revenue forecasting. It predicts the total revenue from each customer relationship by multiplying average purchase value × purchase frequency × customer lifespan. A client who spends $1,500 annually for 3 years has a $4,500 CLTV. This metric guides how much you can profitably spend on acquisition and indicates customer satisfaction levels.

Lead generation isn't rocket science, but it does require consistency and the right strategy. Start with one method, master it, then add more. Remember: you don't need to be perfect, you just need to be consistent.

Your ideal clients are out there searching for exactly what you offer. Your job is to make it easy for them to find you.

Final Word

Lead generation isn’t rocket science, but it’s not blind luck either. It’s about:

• Understanding your audience’s journey

• Delivering the right value at the right time

• Tracking what works so you can do more of it

Start small. Pick one method. Get good at it. Then layer in the rest.

Because the truth is, your ideal clients are already out there, actively searching for the solution you offer. All you have to do is make it easy for them to find you.

And if you’re ready to go even deeper... we’ve got something cooking.

Our Lead Generation Toolkit is in the works - a step-by-step resource packed with the exact methods, templates, and real-world examples that actually work. Stay tuned, Queens - this one’s made for you.