Selling Local Leads?

zejayes

zejayes

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Aug 27, 2013
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Seattle
I'm thinking about doing some churn/burn local lead gen sites, but don't know how to go about the leads & making money.

Do you guys ever just call up local businesses to try to start a relationship of buying/selling leads? Or is it more standard to sell leads to a lead aggregator instead?
 


zejayes said:
I'm thinking about doing some churn/burn local lead gen sites, but don't know how to go about the leads & making money.

Do you guys ever just call up local businesses to try to start a relationship of buying/selling leads? Or is it more standard to sell leads to a lead aggregator instead?
Click to expand...

any bloke can create lead gen sites.. but the client acquisition is what separates the men from the boys..
 
I'd hire a sales rep if that's not what your specialty is. If you don't have much money give them a good sized commission % to start on profit earned. But I'd highly suggest giving them some sort of base salary as we.. It'll help you retain them and make them feel like they're valued.
 
I do a lot of this. It depends on the types of business you are working in.

Churn & Burn doesn't make much sense if you are trying to build a sustainable model. The leads aren't easy to sell unless you plug them into an existing lead steam.

I don't find partners willing to pay for leads consistently very easily.

It depends on the transaction amount for the leads you are sending.
Local Service: Lawn Care, Plumbing, Pools, Carpets - $10-15/lead
Real Estate, Mortgage, Finance - $30+/lead
 
I have a bathroom renovation site which I got to number one for a majority of my keywords getting 2-3 email leads a day. The mistake I made was I didn't pre sell the site. So if you have any skill in SEO and know you are going to get at least top three pre sell the site. In my niche I can demand $50-$60 per lead or take 10% of the job which is $5000 - $ 30000 so it works out to be a bit of coin.
 
I was selling leads to local businesses from 2010 to start of 2013. The difficulty at the start was having local owners see the value in the leads. What I did was approach local businesses by phone and provided them with 10 free leads. As you probably know, local leads convert real well (1 in 3 for me). By the end of the free trial, the customers sold themselves. (Some of my customers were making at least $1200 in profits from those free leads. At the end, everyone wanted to go "exclusive" as they were making a boatload of money. It's an easy sell when the owner sees the tangible value in the leads.
 
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Apologies for answering this question here, but I was asked why I gave up in 2013. (I can't PM yet as I only have 8 posts).

For me the business was based too heavily around SEO. I was generating around 6,000 leads a month in total for a number of businesses. The average price per lead was over the 10 dollar mark.

Like you already know, there's good money to be made in the space as local business don't have a clue about internet marketing like we do. :)

The other main issue for me was dealing with f*wit clients. But when you have a good flow of leads and they see the value in the leads, they roll over like puppy dogs. The power is definitely in your hands after the first month or two of interaction.
 
corywallis said:
Apologies for answering this question here, but I was asked why I gave up in 2013. (I can't PM yet as I only have 8 posts).

For me the business was based too heavily around SEO. I was generating around 6,000 leads a month in total for a number of businesses. The average price per lead was over the 10 dollar mark.

Like you already know, there's good money to be made in the space as local business don't have a clue about internet marketing like we do. :)

The other main issue for me was dealing with f*wit clients. But when you have a good flow of leads and they see the value in the leads, they roll over like puppy dogs. The power is definitely in your hands after the first month or two of interaction.
Click to expand...
Thank you for the insight. It's something I am considering going in on with a partner to deal with the customer service end of things.
 
I am already doing this Local Lead Business. You can make good money from this. We are making around $400 from one website targeted to x location by selling Leads for niche @ $10 per lead price. And yes they are leads, I mean the new call is lead. We listen each call and verify the Leads.

You just need to select Area and the service niche. Rank it for keywords " City + Service" keywords. Buy Forwarding number from Call rail which has call recording option. You can actually listen calls to verify whether its lead or not.

But before all this you need some business owner who can agree to pay xx amount per Lead. The effort you need to put is in term of SEO because you need to be in top 3 or 5 to get Calls otherwise even being in 1st page does not fetch much leads.
 
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