The Lead Generation Model

The Lead Generation Model

One interesting field of affiliate marketing that I’ve had a lot of success in is the business of lead generation. In this post I’ll explain the pros and the cons of this business model so you can work out if it’s something you want to get into.

What is Lead Generation Exactly?

Lead generation is simply where you collect leads on a website and sell them to businesses that can make money from them. Every business wants new customers so you will find that most business owners are pretty open to the idea of buying leads, if they are good ones of course.

Lead generation can essentially be done in any niche, but some do work better than others. Things that are digital in nature are pretty good for lead gen online, such as mortgages for example. However you can also do lead gen for service based industries and generate leads for trades people, such as plumbers, builders, electricians, solar panel installation etc….However you can even do it for caterers and dentists if you want to.

The concept is relatively straight forward, you set up a site in an industry and drive traffic to it and collect the lead through a form on the site. The form then automatically sends the lead to the business, or businesses you are partnering with. You can get some niche ideas by looking at a site like Quotify.

How Much Should You Charge Per Lead?

This is the most common question that gets asked, so I thought I might as well address it now. The amount you charge per lead depends entirely on how much the lead is worth to the person you are selling it to. By this I mean, if the average customer is worth $500 to them, and they convert 1 in 10 leads to a sale, then they would break even if each lead cost them $50, so clearly you would need to charge less than $50.

Reaching a comfortable figure to sell your leads for is something that comes with practice, but at the end of the day you have to reach a happy medium for both parties, yourself and the buyer, so they keep buying leads off you and you keep making money.

You can always trial a price point and test how it goes and reassess it after a month.

Finding Clients

Once you have an idea for a niche market that you think you can collect leads in, you then need to sell these leads to a business. What I do is simply get on the telephone and call up businesses and explain that I’m an expert at generating leads and I would like to help you grow your business by sending you more qualified leads.

It’s pretty hard for people to not be interested in this! You can make it even easier for them by offering them the leads for free.

The Pros of Lead Generation

There are some definite advantages of lead generation, one of them is that you don’t have to be a business owner in any of the niches you want to market it, and instead can pretty much go into any niche you like and sell leads in it.

The set up cost is low, as all you need to do is set up a simple information site with a lead collecting form.

You can also use Google Adwords for these kind of sites, as Google doesn’t mind you sending traffic to lead generation sites, as long as the sites primary goal does not look like it is for leads, as then Google see it as a gateway site and will not allow it. So they way to get around this is to make sure you have other useful articles on the site and a navigation and it is fine.

Once you have a site that is working, lead generation can be a nice earner, especially if you have lots of sites. Or if you choose the right niche you can just scale what you have and create $10,000+ a month sites, I’ve done this myself selling leads.

The Cons of Lead Generation

The Lead Generation ModelThe downside of lead generation is that it can be hard to find businesses that are good at converting the leads, and if they can’t convert the leads then they will stop buying them.

The reason some businesses are not as good as others at converting leads is usually a lack of sales ability and also a lack of infrastructure to manage all the leads. You have to make it clear that when you start sending leads to a business they’ll have to make sure that someone is ready for these leads and following up quickly on the phone and or email, otherwise they’ll miss the sale.

The other downside with lead generation is that some niches will require you to set up a site where you have to almost position your site as the actual service provider. Whereas something like mortgages, you can set up a site that is simply an information resource for the niche and have your lead capture form on the site.

However if you compare this to something like ‘cleaning’ then you can’t exactly set up an information resource site on cleaning, so all you really can do is set up a site that acts like a cleaning site and collects leads OR you can do one like the example solar site I showed above, where you offer to get the customer three quotes that they can compare.

Summary

In closing this post, you can make great money selling leads, however you just need to choose a good niche and make sure you can get the traffic!

By Wasim ahmad

Wasim Ahmad Kumar | founder of wishing-u.com, traffic-exchange.in | A developer and UI/UX designer. Cluster-notes.blogspot.com and tsbdu.blogspot.com are two of my blogs.

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