Lead magnet – what is it and how can you use it to attract subscribers?

Hundreds or thousands of people visit your e-commerce site every day, but most of them disappear without a trace. They don’t buy anything, they don’t sign up for the newsletter, and they leave nothing behind apart from a number in Analytics.

To change this, you need a reason for someone to decide to provide their contact details. That reason is most often a lead magnet.

Lead magnet - what sort of tool is it? How can you turn it into actual sign-ups from potential customers to your contact database? In this article, we explain the different forms it takes, how to design one and where to place it.

Lead magnet - what is it?

What is a lead magnet? A lead magnet is free content or another benefit that a user receives in exchange for their contact details. In practice, this is usually an email address, sometimes a phone number and a first name.

The name speaks for itself. A magnet attracts, and a lead is a person who leaves their contact details and comes within reach of your communications. Put simply: the purpose of a lead magnet is to attract potential customers.

A lead magnet is a marketing tool that converts anonymous website traffic into quantifiable contacts in your database. Instead of waiting for a visitor to return on their own, you give them a reason to leave their email address right now.

The key word here is ‘exchange’. The user is handing over their contact details, so they must receive tangible value in return. This could be valuable content, real savings, or access to something they wouldn’t find just anywhere.

Not every free bonus is a lead magnet. If you publish a guide and ask for nothing in return, you’re doing content marketing. It's only the sign-up form that turns the content into a tool for building a database of potential customers.

How does a lead magnet work, and why use one?

A lead magnet operates according to a simple exchange of value. A user comes across your offer, fills in the sign-up form and immediately receives the promised material.

The whole process is similar across most e-commerce sites. A pop-up, a form on a subpage or a landing page presents the offer; the user submits their details, and the system automatically sends the material and adds the contact to the mailing list.

From this point onwards, the so-called ‘lead nurturing’ begins. This is a series of messages that guide the person from initial interest to a purchase, and then on to the next one. That’s how it works in theory. But what about in practice?

We’re being 100 per cent honest! It’s worth using lead magnets, because a simple form with the phrase ‘sign up to the newsletter’ is rarely enough to get people to provide their contact details. It doesn’t promise anything specific, so the database grows slowly, and each new email address costs more.

Good content builds trust before anyone even thinks about making a purchase. Someone who has downloaded a guide from you and found it helpful returns to the site with a different mindset to a casual visitor.

There’s also the question of the lasting effect. Traffic from adverts stops the moment the budget runs out, whereas your email list continues to work, allowing you to convert subscribers into new customers without incurring further media costs.

Generating leads using a lead magnet also provides a certain context. You’ll treat people who’ve downloaded a guide to shoe care differently from those who’ve downloaded an e-book on beach fashion trends. And differently from those who simply wanted a discount code. Their contact details are added to the database along with information about what attracted them, which makes it easier to tailor subsequent messages to their preferences.

Types of lead magnets: what can you offer?

Lead magnets fall into two categories: those that offer an immediate purchasing benefit, and those that provide knowledge. The former work well in shops with a short decision-making process, whilst the latter are suited to situations where the customer needs time and convincing arguments.

The choice of lead magnet depends on what you’re selling and what stage of the decision-making process the recipient is at. The same brand might offer a discount code to new visitors and video guides to people returning to the site for the third time.

Below are the most common forms of lead magnets in e-commerce and expert-led communication.

Lead magnets in e-commerce

In e-commerce, what works best is often something the audience can use straight away in their shopping cart. E-commerce visitors are not usually looking for information, but rather a reason to buy now or return in a week’s time.

The formats below have one thing in common - the benefit is immediate and visible even before signing up.

Discount voucher / discount codes

Discount vouchers are the most popular lead magnet in e-commerce because the promise is clear in an instant. A visitor sees ‘10% off your first order’ and knows straight away what they’re getting.

However, discount codes come at a price. They attract new customers effectively, but some of them will sign up solely for the discount and will never buy again without it.

That’s why it’s worth keeping an eye on the so-called minimum threshold. A voucher linked to a minimum cart value or restricted to full-price items protects your profit margin better than a discount with no conditions attached.

Free samples

Free samples work well wherever the decision to buy is influenced by scent, texture or suitability for individual needs. Cosmetics, perfumes, coffee, pet food, fabric swatches and colour samples.

Sometimes, free product samples work differently to a discount, as the customer not only provides their address but also tests the range. A product sample that they like secures the sale more effectively than any description on the product page.

It is also becoming increasingly common to offer free trials of equipment for a set period, e.g. 30 days. After this period, the customer can keep the equipment or return it at no cost.

Lookbook / inspiration

A lookbook is a lead magnet for brands where aesthetics and context of use are key. Fashion, interiors, home décor, jewellery.

Instead of a product catalogue, you provide your audience with ready-made combinations. Seasonal looks, interior designs, gift ideas. This is a form of valuable content which, incidentally, leads directly to the product page.

A lookbook also builds your brand’s reputation in the eyes of your audience. An e-commerce site that shows how to combine items looks knowledgeable, and this increases customer engagement with future communications.

Early access / waiting list / drop

Early access is a lead magnet that costs you nothing apart from prioritising dispatch. Subscribers receive information about a new collection, sale or drop a few hours before everyone else.

This format works well for limited editions and brands with a recognisable style. Limited availability boosts the appeal of products, and the waiting list itself becomes a measure of interest even before the launch.

It’s also the simplest way to reward loyal customers. Early access costs less than a discount, and gives those already on your mailing list a real reason to stay in your database.

Collecting email addresses is just the start. The real value comes when every new contact is routed to the right scenario and receives messages tailored to why they signed up. With ExpertSender, you can combine forms, lead magnets and marketing automation all in one place.

Book a free demo and see how to set up such a journey for your business.

Educational and expert lead magnets

Educational materials work well where a purchasing decision requires time, comparison or a substantial budget. The recipient won’t buy after just one visit, but will be keen to access knowledge that helps them make a choice.

This type of lead magnet will help you establish yourself as an expert in your field. A shop that explains, rather than just sells, stays in the customer’s memory for longer than a discount banner.

Industry report

An industry report is a lead magnet for brands that have access to their own data. If you process thousands of orders a year, you’re sitting on material that perhaps no one else in your industry has.

It’s not about a lengthy report. It’s about compiling the most frequently purchased variants or changes in shopping cart value. You can also highlight trends within a specific niche or the seasonality of demand. And that’s quite enough, provided the figures are yours and cannot be found anywhere else.

Trend analyses also attract the media and partners. A good report comes back to you in the form of citations and links, so it works to boost your visibility long after publication.

Case studies

Case studies demonstrate the effect using a specific example, rather than promising it in general terms. You don’t simply state that the product works. You describe the customer’s situation before the purchase, their choice and the outcome.

This format works best for higher-priced products and services, where the reader is looking for proof rather than persuasion. The story of a similar company or someone with a similar problem builds trust more effectively than a list of product features.

Case studies have another advantage. They’re created from material you already have, so the cost of preparation boils down to a conversation with the client and obtaining permission to publish.

Templates / checklists

Templates and checklists provide immediate value within minutes of being downloaded. The recipient doesn’t need to read or take anything on board. They simply fill in the ready-made template or follow the ready-made plan.

This format solves a specific problem, so it’s ideal for repetitive tasks. A pre-season bike check-up checklist, a training plan template, a packing list for a trip with a child, or a plant care schedule.

The advantage of a template over an e-book is simple. The reader can see straight away that the material will be useful to them. They don’t have to take the promise at face value; all they need to do is glance at the list of fields to fill in or tasks to complete.

E-books: rankings, comparisons, user guides or maintenance guides

An e-book is the most comprehensive format, but also the easiest to get wrong. Thirty pages of generalities won’t attract anyone, whereas concise material on a narrow, specific topic can keep attracting subscribers for years.

Three types work best. Rankings and comparisons of models, when the reader is faced with a specific choice. A user guide, when the product isn’t very intuitive. A maintenance guide, when the customer wants to extend the lifespan of what they’ve bought.

With e-books, a narrow promise is crucial. ‘6 tips on how to choose a bike to suit your height and riding style’ will generate more sign-ups than ‘A guide to buying a bike’, because the topic is clearly defined and the reader knows what to expect.

Supplement your content on a given topic with valuable information that the reader won’t find on product pages. Include your own measurements, comparative photos and comments from the service centre.

Online calculators

Online calculators provide answers to questions that cannot be resolved by eye. How many solar panels will fit on a roof, how much paint will be needed for a room, what size to choose for a specific height and weight, or what the instalment will be for a given product configuration.

This type of online tool is engaging because the user enters the data themselves and receives a result tailored to their situation. The sign-up happens naturally at the end, when the results are sent to an email address.

A calculator requires more work than a PDF, but it has two advantages. It doesn’t become outdated and is often the only tool of its kind in a given field, so it appears in search results for phrases that no product description covers.

How do you create an effective lead magnet?

An effective lead magnet solves one specific problem for your target audience and does so faster than the recipient could manage on their own. The rest is down to the execution.

Start with the question your customers ask you most often before making a purchase. Look through chat enquiries, emails to customer service, and comments under product listings. There you’ll find a ready-made list of topics, because every recurring question is a sign that people are stuck in the same place.

1. A good lead magnet answers one such question, not ten. A guide titled ‘Everything You Need to Know About Skincare’ sounds comprehensive, but it doesn’t tell the reader exactly what they’ll get out of it. ‘How to Choose a Cream for Couperose Skin’ directly addresses their concerns and problems.
2. The second requirement is the time it takes to achieve results. The reader should be able to make use of the material in a few minutes, rather than putting it off until a weekend that never comes. That’s why a checklist of one or a few pages often beats a thirty-page e-book.
3. The third point is presentation. The material doesn’t need to be designed by a graphic design studio, but it must look as though it’s been carefully put together. Design your lead magnet so that it has a decent layout, legible typography and no spelling mistakes in the title.
4. The fourth point is ‘instant’ availability. The message containing the material should arrive within a few seconds of signing up, because that’s when interest is at its peak. Material sent ‘within 24 hours’ reaches someone who has already forgotten why they signed up in the first place.
5. A separate issue is ensuring it’s relevant to what you’re selling. A lead magnet is meant to attract people who might buy from you in the future, not those who just come for a free file and then disappear.

A classic mistake looks like this: a garden tools shop gives away an e-book on balcony decorations because the topic is catchy. Sign-ups rise, but sales don’t. The email addresses end up in the database, but they belong to people with no intention of buying.

Check this with a simple question. Could someone who downloads this material need something from me in a week or a month’s time? If the answer is ‘probably not’ - the topic is attractive, but it’s better to ignore it.

💡 PRO TIP

Finally, the form. The fewer fields, the more sign-ups, so only ask for what you’ll actually use in your communications. An email address and first name are enough in most cases. Only collect a phone number, industry or company size if they’ll genuinely influence what you send out later.

Before you start production, it’s worth testing the idea on a small sample. Set up a simple form with just the promise and see how many visitors leave their email address. If nobody clicks, the problem lies with the topic, not the execution. You’ll save a week’s work on material that nobody wanted.

Where should you place your lead magnet to attract potential customers?

A lead magnet works best where the audience is already thinking about the problem that your content solves. That’s why, rather than just one spot, it’s better to have several touchpoints spread across your website.

1. Pop-ups usually generate the most sign-ups, but how they’re displayed makes all the difference. A pop-up that appears three seconds into a visit interrupts the reader and is usually closed. The same pop-up shown after scrolling halfway down an article or when the visitor tries to leave the page can be much more effective.
2. The second location is a sign-up form embedded in the middle of a blog post that covers the same topic as the lead magnet itself. This approach converts better than a generic box in the footer. A reader of an article on types of chain lubricants will be happy to download a pre-season bike checklist.
3. A separate landing page comes in handy when you’re driving traffic to a lead magnet from adverts or social media. A web page with no menu and no outbound links has one sole purpose: to present the offer and collect an email address.
4. Product pages are an underrated resource. A size calculator, selection guide or lookbook placed alongside a product captures the attention of people who are one step away from making a purchase but are hesitating over which variant to choose.

It’s also worth making use of pages that are already attracting customers from search engines. Check Google Search Console to see which subpages have the most views. Place a form there. Content thematically tailored to a subpage that ranks highly in search results will generate sign-ups without any extra budget.

Don’t forget about the places where contact with your brand has already taken place either. The post-purchase thank-you page, the footer of a transactional email, the order confirmation screen. Someone who has just bought something has the highest level of trust in your brand throughout the entire cycle.

Frequently Asked Questions (FAQ)

What does lead generation mean?

Lead generation is the process of collecting contact details from people interested in your offer. A lead magnet is one of the tools used in this process.

Lead generation encompasses both the collection of contact details itself and the subsequent communication that guides the prospect towards a purchase (lead nurturing).

Does a lead magnet always have to be free?

In most cases, yes, because offering it for free lowers the barrier to entry and increases the number of sign-ups. The recipient pays with their contact details and consent to be contacted, so the exchange is not one-sided anyway.

There are, however, exceptions. Some brands offer material for a nominal fee to filter out casual visitors and retain only those who are genuinely interested in their database.

How do you tailor a lead magnet to a specific industry and target audience?

The starting point is the length of your target group’s buying journey. Where decisions are made quickly, a voucher or sample will work better. Where customers spend weeks comparing offers, educational material comes out on top.

Also check which questions keep coming up when customers contact your support team. This is the simplest way to pinpoint the real problems faced by your audience in a given industry, rather than just guessing.

How do you create a good lead magnet?

Narrow down the topic so that it can be summarised in a single sentence, and ensure the material is available immediately after sign-up. These two factors account for most of the difference between material that generates sign-ups and material that just sits on the server.

If you’re looking for a more detailed answer, go back to the section on how to create an effective lead magnet. There you’ll find a full list of criteria, complete with examples.

A lead magnet is a way to turn anonymous traffic into leads with whom you can continue the conversation. Everything else happens after sign-up - through workflows, segments and messages tailored to why someone provided their email address.

Book a free demo with an e-commerce expert and see how to set up such a funnel for your business.