It is a proven fact in marketing that you will continue to buy
over and over again from people and companies that you know,
like and trust. Yet 95% of all internet marketers fail when it
comes to eBay. Most are looking for the fast buck. They have
completely miss the opportunity to use eBay as a lead
generation tool. They miss the opportunity to create a list of
people that will be willing to consume your products over and
over again.

Lead generation on eBay can be accomplished in several ways.
The most popular way is by using the self liquidating ad. A
self liquidating ad is one that pays for itself. In other words
your customer directly pays your advertising costs. What they
are purchase from you is really some form of advertising.

Let me give you an example of a self liquidating advertisement.
Recently I saw in a magazine an ad for a pair of sunglasses. The
ad claimed that the sunglasses were free. You just have to pay
the shipping and handling costs.

My guess is that the advertiser probably isn’t making much if
any money on the sunglasses. But they also aren’t losing any
money. The shipping and handling most likely cover their actual
costs. What they really want is something far more valuable –
your contact information and your “permission” to market to
you. In other words they are looking for qualified prospects -
prospects that are interested in the products and services they
are selling.

Once this company has your contact information and “permission”
to market to you, they will begin to establish a relationship.
They will do this in a variety of ways including sending you
ads for other product and services you may be interested in.
Over time most customers will be worth many times more than
their initial purchase.

Since eBay is purely commerce site it is a perfect place to do
a self liquidating ad. Let’s look at an extreme example. Let’s
pretend that you own a car dealership that only sells high end
sport cars. We will assume that your average car sells for
$65,000. One way you could use a lead generation self
liquidating ad would be by “selling” a special report. For
example you could sell a report on eBay entitled “18 Ways to
Drive the Car of Your Dreams for Less Than the Cost of a Yugo”.

An ad like this would get some attention, especially from
people who are interested in trading up to a high end sport
car. The report is really nothing more than an advertisement
for you. Of course you would have to write a report that had
real content and offered up ways for the consumer to really do
as the title suggests. A report like this however, would cost
you literally nothing to produce – except your time – and there
would be no overhead, no inventory, and no headaches.

Since this report would be nearly all profit you could set a
low “Buy It Now” price ($4.97) to attract a huge number of
prospects. The revenue generated would easily offset eBay’s
seller fees.

In the report you could suggest several real ways for people to
drive a luxury car for little money. You could also list in the
report resources for them to research. For example the
resources could be dealers that know how to work special
financing deals or specialize in selling high end sport cars
below market value. The resource you suggest would of course be
your own car dealership!

The report did not cost you anything to produce and it fully
paid for it's own ad costs with each person that ordered. The
person buying the report is more likely interested in what you
have to offer and are therefore partially qualified. Anybody
that contacts you after reading the report is a fully qualified
prospect and should be marketed to aggressively.

Once you have their name and contact information you could send
them a weekly “hot sheet” of cars that you are trying to sell.
Once they purchase you could then sell them accessories and
branded clothing. If they were close to your shop you could
sell them on servicing. And the list goes on and on.

If you study eBay there very few people using it as a lead
generation tool. Yet lead generation and specifically
self-liquidating advertising is a proven winner. Almost every
type of business can benefit from lead generation advertising.
If done correctly lead generation advertising can actually
become another source of revenue for your company.

Look at eBay as more than just a fast buck. Look to eBay as a
way to create long term clients. eBay if worked properly can be
your best source of fresh leads and can really explode your
sales.

About the Author: Todd Reese is an information marketer, eBay
seller, marketing consultant, and author of
http://www.AutoDigitalDelivery.com. His specialty is turning
struggling eBayers into Power Sellers.