Is Starting a Lead Generation Business Right for You?
January 3, 2022
With digital marketing expanding and diversifying, many people have discovered different sub-niches in the industry that have led to successful businesses. One such sub-niche is a lead generation business. The reality is not all businesses have the time and expertise to look for leads. Most of them are constantly searching on Google “How to get leads for my business.” While this may not be a good thing for them, it creates an avenue for many people to start a lead gen company. But before you take this step, you need to know if you are a good fit for such a business.
Good Lead Generation Characteristics
Experience in Sales or Marketing:
as you would imagine, if you are going to find leads, you need experience in either sales or marketing, but preferably both. You need to understand digital marketing tools, techniques, and how to build lead-generating tactics.
Knowledge in the Field:
the niches you can pick for your lead-generating company are broad. While you might find the perfect niche, with many potential customers and companies ready to purchase your leads, if you do not understand that market, you may end up failing. The whole idea of lead generating is to offer value and information; you need to portray yourself as an expert in the field to gain a potential customer’s trust. You cannot do this if you are not knowledgeable in the field.
Characteristics of a Good Lead
Just like there are characteristics of a good lead generator, there are also traits you should look for when finding leads. You want to sell quality leads to companies, people who are most likely to convert. The best way to achieve this is by properly vetting any leads you get before pushing them to companies. If you sell quality leads to a company, odds are they will come back for more and probably refer others to your services as well.
Share all the Information You Requested:
one characteristic of a good lead is that all the details are shared in the form. An excellent way to gauge this is by having a two-step process in your contact form. One for just the email and the next page for all the other personal information. In many cases, many people will only fill out the first step of the process; from this, you can tell they were somewhat interested but not entirely convinced; for such individuals, it would be best to remarket rather than mark them off as a lead. A quality lead will fill out all details, even if it is a two-step process.
Visit Multiple Pages on Your Site:
A good way to identify a good lead is when they take their time on your website and look at your content. This is a good indicator that they want to learn more and are actually interested in the product or services you offer.
Steps to Take to Start a Lead Generation Company
Now that you know if you have the characteristics of a good lead generator and the qualities to look for when selecting potential leads to send you to your clients, here is a step-by-step process on how to establish your business.
1. Identify Your Niche
While some people choose to throw a wide net and work with multiple niches, it is always good to select a specific area you would like to explore. This will help you and any potential companies know exactly what you deal with and, by extension, look at you as an expert in the niche.
Finding the right niche is also very tricky as you need to consider things like competition and the cost of ads. For example, if you decide to set up a health care lead-generating company. You will need to check your competition first, see how many they are, their price range, their marketing tactics, and their entire setup. Such a niche, though lucrative, could be a challenging avenue to penetrate as the average Cost Per Click(CPC) is at about $160. But do not despair; through proper research, you will know if it is a viable sector you would like to pursue. The good thing is there are hundreds of niches and sub-niches to pick from.
2. Identify Your Marketing Approach
Once you identify the niche you want to venture into and have done proper market research on your competition, it is time to identify your marketing approach. You can use various marketing tactics, but you need to have a solid starting point.
Organic Lead generation:
this is where you set up a blog, youtube channel, or any other content-centered channel where your potential clients can find you organically. The most popular and affordable organic lead-generating tactic is setting up blogs and optimizing keywords. Once you rank high on Google, any potential people looking for products in your niche can find you, and potentially you can convert them into a lead. The upside of organic content marketing is that the conversion rate is higher because the visitors were actually searching for an answer or a product. However, the downside is that your site can take a long time before it ranks and needs the patience to achieve any lead generation.
this is another popular tactic that is growing fast because of how hard it is to rank organically these days, especially in highly competitive niches. This is more of an arbitrage business where you sell leads at a higher price than it costs you to put up the ads. One of the most popular paid-per-click companies is Google. The best thing about Google’s PPC program is that your ad will be shown only when an interested party searches for a specific Keyword or query, meaning it is easier to convert them once they click on your link as they were already searching for it. The downside is it can be costly to run such ads, especially in a competitive niche.
while display ads are rarely used today without other marketing tactics, it is still a great way to build awareness of what you are offering.
while this may not be the most conventional approach, many marketing experts may choose to buy an email list and start their lead-generating process there. They will then email this list and start building a relationship with these potential clients at this stage.
3. Proof of Concept
Before you start selling leads to companies, it is important to provide them with proof of concept. This way, they know exactly what they are purchasing. You can offer proof of concept by sending them a shortlist of potential leads for them to follow up. Once they establish they can actually convert the leads, the next step is locking them down.
4. Setting Up an Agreement
The cost of each lead can differ quite drastically. Furthermore, leads from different niches cost differently depending on niche competition. It is up to you to set a price before you reach an agreement with any company looking to buy leads from you. Calculate the acquisition cost and place your markup; this ensures you make a profit. The cost of acquisition includes your marketing costs, the tools you used, and your time.
Once you establish this, you can then give the company a quotation and an estimate of how many leads they should expect from you every month.
5. Plan and Build
Once everything is set up, that is, you have a source of leads and companies to sell these leads to, it is time to plan and grow your leads. Build a relationship with them and convert them to high potential leads.
As you can see, building a lead generation company can be a successful venture if you take the right approach. The most important thing is to identify your market and offer valuable information geared to find quality leads. It may seem simple, but you need patience and an understanding of the digital marketing space.