Local Lead Generation
Every day, thousands of local businesses around you wake up and wonder how they can get new customers. They know that internet marketing can be effective, but have no idea how to use it.
This is where you come in – with your marketing knowledge, you can help local businesses generate fresh leads, and in the process, get paid top dollar.
Local lead generation is one of the best kept secrets in internet marketing. It is wildly lucrative, relatively easy and incredibly scaleable.
To be honest if I had to start from scratch today, I would probably consider that route over authority sites and I’ve been thinking of ways to implement this on our sites as well because the potential for earnings is insane and it’s really easy.
- Easy to get started since most local businesses are clueless about online marketing.
- Most businesses are happy to pay $50 or more for high quality leads
- Limited competition locally, especially outside big cities (NYC, LA, London, etc.)
- Lead buyers who can’t close deals because of poor sales processes will question quality of your leads
- Need some experience in getting traffic and capturing leads
- Need to work out agreements with local lead buyers, often on an individual basis
Why it works
Even though local lead generation is a multi-billion dollar industry, it is incredibly easy to get started, even for rank newbies.
If you know the basics of internet marketing and can put together a lead capture form with a landing page, you can generate leads for local businesses.
You will have to negotiate agreements with local lead buyers at first. However, once you’ve done this a few times, you will not only have the process pat down, but will also have clients you can use as validation of your services (overall it’s much easier to sell on a pay per lead basis than on a monthly retainer so that’s not super tough).
You’ll find plenty of takers for your offer because local businesses are often paying up to $50/click to Google. If you can offer them targeted, qualified leads for the same amount, they’ll love you for it.
A lead is essentially the same as a ‘product’. Selling leads as a product will be your primary source of earnings
Down the line you can create a site ranking for local keywords and sell ad space on top of capturing leads.
What it takes to make $100/day through local leads
How much you can charge for each lead depends on two factors: the industry and the lead quality.
- Industry: The value of each lead is directly proportional to the value the businesses can derive from the lead. Lawyers, financial institutions, etc. are often willing to pay top dollar for leads. Check Google AdWords CPC to get an idea of what businesses are willing to pay in different industries.
- Lead quality: The amount of data available for each lead and the lead’s current stage in the buyer’s journey have a big impact on lead prices. Typically, the more data you have and the closer the lead is to making a purchase, the higher the lead value.
For some businesses, it is possible make nearly $50 or more for each lead. Even with a conservative $20/lead pay rate, you will have to sell just 5 leads a day to make $100/day.
At 1% conversion rate and cold traffic, you will need just 500 visitors/day to capture 5 leads/day. If the traffic is targeted and the site content highly relevant, you can increase the conversion rate to nearly 4-10%.
Thus, you can make your 5 leads/day quota with as little as 50 visitors/day.
How the business can scale
You might not realize it, but some of the top websites in the world essentially follow the local lead generation model.
Yelp, for example, makes money by charging local businesses for leads. This has catapulted Yelp to nearly $2Bn in market cap with nearly $360M in 2014 revenues.
To scale this business, you can do two things:
- Target other industries: Increase your earning potential by targeting more than one industry.
- Target other cities: Go beyond your local city and target businesses from cities nearby.
- Create companies offering the service yourself to keep all the money.
In fact, when you think about it, even Google is essentially a referral engine for businesses. And I think it’s done pretty well for itself 🙂
Plus, if you’re intimidated by the process, just take a look at some of the landing pages I found for highly commercial keywords that can yield $100+ leads without problem.
Top of adwords: Private Investigator Desmoines, note the @aol.com email
#1 on Adwords for “pool cleaning service Oxnard”. That’s right, not even about pool cleaning service.
Middle of Adwords “locksmith santa rosa”. Note how there’s no call to action at all.
If you have been reading Authority Hacker, you must be able to do better. Then it’s just a matter of connecting supply and demand and making a profit. Easy and scalable.
First Steps To Get Started
- Choose a target industry. The best industries are ones that spend a lot on ads and have a limited internet presence (such as lawyers)
- Setup a website, preferably with the industry/location name in the domain (such as “FindLawyers.com” or “NYCDoctors.com”).
- Create a landing page and direct traffic to the page to collect your leads. Try to collect more than the email (name, address, budget etc) to sell the leads for more.
- Once you have 2 -3 leads, Contact local businesses and offer them your leads at a price lower than their ad spend.