Is generating leads and selling them to business a good business model

16 replies
I know a few ways to generate leads for various businesses. I've been contemplating about selling those leads to businesses. Is there are a known framework for this kind of business model. Is there anybody else doing the same with any success?
#business #generating #good #leads #model #selling
  • Profile picture of the author superowid
    I believe that's part of TRAFFIC or SEO SERVICE which usually offers to businesses that go online.
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    • Profile picture of the author AdamDickens
      Originally Posted by superowid View Post

      I believe that's part of TRAFFIC or SEO SERVICE which usually offers to businesses that go online.
      yes, correct
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  • Profile picture of the author luvbuggal89
    Yes there are a few legitimate biz opp lead vendors out there (I have tried 4 lead company's through Google Adwords listings with two of them turning me a modest profit).

    The one question you must ask yourself however, is if the leads that company's are offering are so good then why in tar-nation would they be selling them to you? unless they are being resold or some sort of thing like that.

    With that being said, I believe in joining and testing as many lead/ad sites as possible (where funds allow) to see for myself whether I can make money with them or not. If you test a lot of different products over time, keeping the good and ditching the bad, you will have a very nice list of effective ad sites in your arsenal.
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  • I generate a lot of leads through my fiverr gig and can never keep them all. I don't sell them on I just tell them I can't do the work unfortunately.

    I should certainly think about selling them but I also wonder how do you price these leads and what sort of system should one setup.

    Hoping others can chime in on this
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    • Profile picture of the author George Schwab
      Originally Posted by high_plains_drifter View Post

      I generate a lot of leads through my fiverr gig and can never keep them all. I don't sell them on I just tell them I can't do the work unfortunately.

      I should certainly think about selling them but I also wonder how do you price these leads and what sort of system should one setup.

      Hoping others can chime in on this
      may i ask what kind of work you do?

      if you cannot fulfill their needs you absolutely should send those leads
      to someone else, if its a good fit for them. And of course that guy will
      send you a monthly paypal mail.

      Tell us more, maybe someone here can help you out.
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  • Profile picture of the author GordonJ
    Originally Posted by Sathish Manohar View Post

    I know a few ways to generate leads for various businesses. I've been contemplating about selling those leads to businesses. Is there are a known framework for this kind of business model. Is there anybody else doing the same with any success?
    Well, it works for probably one in ten or so who try it, and by "works", it becomes their paycheck and for a few, a very nice lifestyle.

    It is this: "various businesses"...and they are very different indeed.

    An attorney specializing in injury or negligence law, will pay a lot of money for a good lead, Papa Felice at the local pizza parlor, not so much.

    The more qualified the leads, that is, what was done to get them, and what is their true level of interest, the more DEMAND you will have.

    A lead from an IM make money online sign up page is probably worthless. If they become buyers, worth a little bit more.

    The successful people selling leads, are for the most part PROFESSIONALS who specialize on a given industry and tend to have clients with deep pockets because they are dealing with services that cost or produce thousands of dollars.

    Do your homework, because it could take you down a rabbit hole of low profits and time spent when you could be doing gangbusters because...you spent some time to learn the business and the best businesses to market to.

    GordonJ
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    • Profile picture of the author JohnMcCabe
      Originally Posted by GordonJ View Post

      An attorney specializing in injury or negligence law, will pay a lot of money for a good lead, Papa Felice at the local pizza parlor, not so much.

      The more qualified the leads, that is, what was done to get them, and what is their true level of interest, the more DEMAND you will have.
      Which leads to another factor. How much is a successful lead conversion worth to the buyer?

      The PI lawyer Gordon mentioned could make several thousand dollars by taking their 1/3 to 2/3 of any settlement.

      A real estate agent could make several thousand dollars commission on a successful property sale, even if they have to split the commission with another agent and both brokers.

      Papa makes a couple of dollars on a $15 pie.

      For the first two examples, generating a couple of solid leads per month could net you a few hundred to a few thousand dollars.

      For something like MLM leads, you may have to generate thousands of leads per month, and sell them hundreds or thousands of times, for a small price (<$1 each) to make any money.

      Both ways can work, but most of the successful lead gens I know of go the specialty route.
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  • Profile picture of the author triratnahitech
    Leads are prime concern for any business and if you are getting or generating good leads then definitely you need to pass it on someone who can actually use those leads rather than say no to them. Yes, People would love to buy the leads and in fact most of them spending huge amount of money to get the leads. So it will be good act if you sell those leads to needy persons.
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  • Profile picture of the author Jeff Burritt
    I personally know a couple guys that do this. They created a local biz website for a couple niches, plumbers and carpet cleaners. They sell the leads by simple creating a rental agreement with a local business owner. So a carpet cleaning guy will sign a 3 month, 6 month, etc lease for the local carpet cleaning website leads. Whatever leads come through the site get forwarded to this business owner.

    Here's the thing. If you are able to rank the site and generate consistent consistent leads, then biz owners will sign that deal. I've personally seen the contract as high as $400 for 6months, so that's $2,400 up front cash to you. Not bad huh.
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  • Profile picture of the author discrat
    Gordon and John make a lot of sense. It can be a hugely lucrative business Model. Probably for no one in here as far as MMO leads as Gordon aptly pointed out.

    But there are Markets that this could be hugely profitable with.

    Me think the Lear Jet Market might be one if you were fortunate enough to have the Connections and Education


    - Robert Andrew
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  • Profile picture of the author Dave O
    Recently I've been thinking of creating a page to gather home repair/improvement leads. I would then cold call various professionals in that customer's area in an attempt to sell those leads.

    I've also thought of making a system to stream line getting the leads to the professionals.

    Can anyone offer any idea on how much such a lead would go for? For instance let's say someone needs several rooms painted. Do you think such a lead in the US would be worth $50?

    I know it depends on a lot of things. I'm just sort of grasping at straws trying to get more information. I don't know anyone in these types of businesses.
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    • Profile picture of the author JohnMcCabe
      Originally Posted by Dave O View Post

      Recently I've been thinking of creating a page to gather home repair/improvement leads. I would then cold call various professionals in that customer's area in an attempt to sell those leads.

      I've also thought of making a system to stream line getting the leads to the professionals.

      Can anyone offer any idea on how much such a lead would go for? For instance let's say someone needs several rooms painted. Do you think such a lead in the US would be worth $50?

      I know it depends on a lot of things. I'm just sort of grasping at straws trying to get more information. I don't know anyone in these types of businesses.
      Last time I used one of the referral services to look for a professional, I asked the guy if I could call him directly. He was happy to give me his direct number, as every call that went through the service cost him $20.

      Oh, this was for a plumber.
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  • Profile picture of the author EPoltrack77
    Why not build a list of quality leads in your marketplace for yourself? A list is a very valuable asset if you take care of it. I mean look at all the people who buy lottery tickets everyday on their way to or from their job. Now if just a small percent of those people worked on building a list instead of lottery tickets they are promising themselves a return.
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  • Profile picture of the author William Waltham
    If you're generating organic leads yourself, you may be able to sell them for a lot of money, depending on the industry. I personally know a few people who do this with lawyers and real estate agents, and they do quite well for themselves. One of my friends who generates leads for personal injury lawyers makes a full-time living off of it. It isn't something I've tried, but I know people who do it and bank a lot of cash, so the potential is there.
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  • I'm afraid no! because the leads built by someone else may not be trusted is not actually built based on your exact business niche. Those businesses buying such leads may not experience great conversion rate some times non at all by the time they start marketing to the leads.

    Except and only when the leads where built around a particular market niche then should I consider it in my business.
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  • Profile picture of the author DIABL0
    I've been generating leads for 18 years online. However, I generate nationwide leads and not local. The money is in financial vertical...insurance, loans, etc... As they pay well per lead and the offers have mass appeal with the general public...can generate high volume.

    Lead generation is a huge business. You can also cross promote other lead generation offers, monetize the thank you page traffic. Get affiliates and produce higher volume and then you get to monetize their leads and thank you traffic.

    Big money!
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