Most businesses today rely on their own digital marketing campaigns to generate leads and sales. But that doesn’t mean that they’re not actively looking to purchase leads from other businesses. Leads are sought after in all kinds of industries from B2C to B2B. As a result, businesses are willing to pay top dollar for lead suppliers. Here are some strong reasons why lead generation is big business.
Reason #1: Advertising Costs are Going Up
With increasing competition in channels like Facebook, ad costs are continuously going up. For example, You can get a general CPC figure for various industries here. You can see that the cost of advertising for most sectors will run you at least $1 per click. Consequently, the cost per lead for many businesses is increasing and many businesses are looking to diversify to other lead sources.
It’s also important to understand that channels like Google Ads and Facebook Ads aren’t exactly a core competency for many businesses. Many businesses do not know how to creating winning campaigns nor do they know how to optimize their ads to generate the best results. This means that these businesses are often paying above the industry average and if you can deliver leads at a reasonable rate, they’ll be more than happy to pay for it.
Reason #2: Some Businesses Allocate Huge Budgets for Leads
In some industries, there is a significant focus on acquiring leads. In the B2B industry, it’s reported that 53 percent invest half or more of their budget into generating leads. If you can deliver high quality leads on a regular basis, you can bet these businesses will do business with you. They have a large budget to work with and will often pay high rates as long as the leads are high quality.
It was also found that the B2B industry is seeing anywhere from five to ten percent conversions from high quality leads. That’s a very strong conversion rate when you consider the fact that the average conversion rate online is a meager one percent. Many businesses know how to build funnels, sales pages, and offers that turn leads into customers. That’s why you should focus on industries and find businesses that have a good marketing system in place. This will allow you to sell leads at high rates.
Reason #3: There Are Many Ways to Generate High Quality Leads
One of the great things about digital marketing is that there are many channels and strategies you can use generate high quality leads. You can use everything from social media ads, Google Ads, social media marketing, content marketing, display advertising, to SEO. The important thing is to get really great at one channel or strategy. This will enable you to acquire leads at a very low cost and broker them to the businesses that are paying top dollar for them.
You success will depend on you knowing how to convert traffic into leads. A big part of this is creating a well designed and written lead generation website. You’ll need to learn various skills like copywriting, basic web design, email marketing, and conversion rate optimization. If you’d like learn how to build effective lead generation pages, here are some great examples to learn from.
Lead generation can be a big business if you know what you’re doing. Ideally, you want to find the industries, markets, and businesses where leads are in high demand. You also want to try to sell your leads at the highest prices. But in order to succeed with this business model, you’ll need some essential digital marketing skills to create winning lead generation campaigns for your clients.