Learn how to start a lead generation business from scratch, and sell at 5 400 per lead This guide contains all you ll need in one place.
In a million years, what do you think is the one thing businesses will never stop paying to get? The answer is: customers! That is why lead generation services will never go out of demand, and providing such services will always be lucrative. So, if you choose to learn how to start a lead generation business, you can hardly go wrong.
Read on if you desire a business model that requires you to offer zero products, low capital, unlimited growth potential, and little hands-on time. Also, you can run it from the comfort of your home.
In this guide, we’ll work you through the entire process of starting a lead generation business from scratch. You’ll learn the steps for setting up the business and discover the skills, tools, and estimated budget you need.
We know you’re eager to dive in. But first, we strongly advise you to check out the overview below. It will help you understand what it’s like to run a lead generation business before you commit to it.
Lead Generation Business Overview:
A lead generation company is any business that deals in the creation of marketing campaigns to acquire prospective customers for other businesses. For a fee, clients who have their own businesses can have a lead generation agency bring in new prospects into their company’s sales pipelines.
These prospects, who have a potential to buy based on their qualification on certain sales criteria (e.g budget, need, interest, etc.) are called leads.
Types of Leads Generated:
If you start a lead generation business, you’ll be generating leads that mostly fit into one of 3 categories:
Cold leads: Unqualified leads that require a large amount of nurturing to convert to sales.
Hot leads: Qualified leads that have the budget, interest, and desire to buy (requiring a little nudge).
Warm leads: In between hot and cold because they don’t qualify on every sales criteria – but don’t need too much nurturing to convert.
Generally, businesses would gladly pay big bucks for hot or warm leads. Though it’s significantly more difficult to sell cold leads, you can still make a fortune from them, with the right strategy.
Market, Revenue, and Earnings:
A lead generation business can be a very lucrative venture. Globally, the lead generation industry is worth over $295.1 billion, according to Business Wire.
As soon as a day after you launch, clients are willing to pay between $5 to $50 for a single lead. That means generating a hundred leads for a client could fetch you between $500 – $5,000. And if you can drive 3000 leads per month, you get to earn $15,000 to $150,000 a month. You get the idea.
A more experienced lead generation agency could charge as low as $50 and as high as $400 for a hot lead.
The exact price per lead that you charge depends on several factors such as:
Cost of product/service
Lead qualification level (cold to hot)
Industry or niche
Lead generation channel or campaign type
Long Term Value (LTV) of leads
Average Order Value (AOV) of leads
Client’s company revenue
You could also get clients to pay you a monthly retainer fee to generate a non-specific number of leads regularly. This model earns lead generation businesses about $2,000 to $20,000 per client every month.
Business Operations:
Before you start your business, it’s important to understand how lead generation companies work.
To run such a venture, you’ll need to procure leads via cost-effective channels (low-cost ads, blogs, landing pages, social media, etc.).
Most lead gen companies get leads by building and managing a lead generation website. They majorly launch campaigns that get site visitors to fill contact forms with their information.
After procuring leads, the next step is to nurture them to obtain even more information. These info serve to qualify leads and determine their potential to buy. The data is sent into the company’s database to be recovered when a client needs leads in that market niche.
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