What is lead generation?

If you're running a small business, you're always thinking about how to get more customers. Lead generation is just the fancy name for that process.

It's how you find the right people, get their attention, and convince them to stick around long enough to care about what you offer. Done right, lead generation turns curiosity into interest, which turns leads into sales. Whether you're selling candles out of your garage or launching a SaaS startup, understanding how to attract and convert leads gives you control over your growth instead of leaving it up to chance.

What is lead gen: the basics

Lead generation means getting potential customers to raise their hand in some way: signing up, messaging you, booking a call, or even just clicking “follow.” The goal isn't to make a sale on the spot. It's to start a conversation with someone who actually wants what you're selling. If you're clear on who your audience is and what problem you help them solve, lead generation gets a lot easier. Every ad, video, or blog post becomes a tool to pull them closer to you. And platforms like TikTok make this even more powerful. TikTok users are 1.3 times¹ more likely to sign up for something they see in an ad compared to other platforms, which makes it a surprisingly strong channel for small businesses starting out.

What is the best way to generate leads?

Most lead generation falls into one of two buckets: inbound or outbound.

• Inbound means people come to you. They find your content, like what they see, and take action. It's slower to build but pays off over time.

• Outbound is when you go to them. Cold emails, ads, DMs, anything that pushes your offer into someone's space. It's more immediate but takes finesse.

Smart businesses do both. You might run TikTok ads to get visibility (outbound), but also post videos that build trust and answer questions (inbound). On TikTok, one brand saw a 41.85% conversion rate on a lead generation campaign and dropped cost per lead by 83% , just by using the right format and audience targeting.*

What is lead acquisition: the mechanics

So how does someone go from "just looking" to becoming a real lead? Usually, it looks like this:

1. They see your brand on social, in search results, or through a recommendation.

2. They click. Maybe it's a video, an ad, or a blog post.

3. You offer value like a discount, a quiz, or a free resource.

4. They share their info via email, phone, a follow, or a message.

5. You follow up with something that moves them closer to buying.

Each of these steps is part of lead acquisition. Miss one, and the whole system slows down. One campaign using TikTok Lead Generation collected over 1,000 leads with a 5.06% conversion rate and a 35% qualification rate, meaning more than 1 in 3 were a good sales fit.*

Strategies for successful lead generation

What works best? That depends on your business, your offer, and your audience, but here's a solid foundation to build on:

• Solve before you sell. People don't want to be pitched. They want help. Lead with that.

• Be human. Talk like a real person, not a billboard. Use your face, your voice, and your story.

• Lower the barrier. Make it easy to say yes. Free trials, "DM us,: or instant forms.

• Stay visible. Most people need a few touches before they act. Show up consistently in your customers' feeds and inboxes with automated follow-up campaigns.

Good lead generation isn't a trick. It's just the result of being useful, visible, and easy to respond to.

Measuring lead generation effectiveness

You don't need complex tools to know if your lead gen is working. Just track the basics:

Key lead generation metrics

1. Cost Per Lead (CPL)

   1. Formula: CPL = Total Spend ÷ Total Leads

      1. Example: Spend $500 on a TikTok campaign that gets you 100 leads. CPL = $500 ÷ 100 = $5 per lead

2. Conversion Rate

   1. Formula: Conversion Rate = (Customers ÷ Leads) × 100

      1. Example: If 12 out of those 100 leads become customers: Conversion Rate = (12 ÷ 100) × 100 = 12%

3. Lead Quality (Interpreting Context)

   1. Compare how different channels perform, not just in volume, but in actual results.

      1. Example: You get 100 leads from TikTok and 100 from a trade show.

         1. TikTok: 12 sales = 12% conversion

         2. Trade show: 3 sales = 3% conversion

That tells you where your best leads are coming from and where to invest next. Even with the same number of leads, the quality and ROI are completely different.

Enhancing lead generation: what's next

Lead generation is evolving fast. Here are the latest developments':

• AI-driven targeting: Tools like TikTok Smart+ Lead Generation Campaigns can help you match the right ad to the right person at the right time.

• Chat-based funnels: Instead of filling out forms, leads start a conversation via chatbot, DMs, or live chat. TikTok Messaging Ads are a new solution to help businesses start real-time conversations with customers.

• In-app conversions: Platforms like TikTok are facilitating seamless experiences where users convert without leaving the app.

• Real-time CRM integration: Tools with Customer Relationship Management (CRM) integration capabilities that can plug into advertising tools like TikTok Lead Generation allow real-time updates and immediate lead gathering, increasing the chance for you to turn a visitor into a customer.

The bottom line

You don't need to chase every trend. Just keep your focus on clarity, value, and connection and use tools that help you scale what already works.