A lead magnet is so aptly named because you are drawing your leads to you like a magnet.

You are offering something enticing, with a high enough perceived value to your target market that they cannot resist swapping their email address for the item.

A lead magnet helps you to draw more targeted leads into the realm of your business by providing them with an insight into what you offer with a short, simple but valuable resource. That is, the people who are attracted by your offering, are people who are actually interested, to some degree, in the topic you represent. Those people are more likely to buy your products and services than a person who did not download your item.

Lead magnets are not just for online or service businesses, many companies have found innovative ways and means to get the precious data they want from their customers, for example, Clubcards offered by many stores and supermarkets. Those ‘Clubcards’ or other loyalty perks, only work if the stores have their customer details to work with.

Like with a ‘Clubcard’, a business that holds its customer's data, can identify ordering and buying patterns and thus target specific offers to specific customers, making them more likely to sell specific items. It's sheer marketing genius really, because it is allowing the customer to tell you exactly what they want and whether or not they use it.