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.
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 for a week…(continued on page 2)