What Is Lead Generation?
Let’s start with the nuts and bolts… what exactly is lead generation, and why do businesses even need this kind of service?
Businesses have got customers and clients, and they’ve got an audience. A lead is somewhere in between. They might become a customer in the future, but first they need to be found…
Lead generation efforts are all about finding these people.
What Is A Lead Generation Agency?
All businesses use lead generation techniques… from your cousin posting Facebook ad for his auto repair shop, to the shiny new sign at your local mom-and-pop store.
A lead generation agency, though, is different. Lead generation and demand generation are their whole deal. They make their money based on the leads generated for clients.
This is why the top lead generation companies are making so much money. They get great results as they generate sales leads for their partners, and these partners get a steady stream of conversions as a result.
What Does A Lead Generation Agency Do?
So how does a good lead generation company get these great results again and again? While the lead generation process takes many forms, there is a basic system that most agencies follow.
Identifying Valuable Leads
It all begins with lead research. The agency gets to know the client’s business, their products, and their market. Then they start identify prospective clients… people who can benefit directly from what the business offers.
But businesses don’t want just any leads. They want qualified leads leads who are easy to convert. This is why lead generation activities always start with investigation.
Using The Best Lead Generation Tools
Lead generation software has a big role to play. Every agency worth their salt will be using these digital lead generation tools to make life easier for them, and to maximize the results for the client.
| The Tool | What Can You Do With It? |
|---|---|
| Social media marketing tools | Generate interest and attention on social media channels |
| Data capture tools | Capture user data from website visitors |
| Lead segmenting and scoring tools | Provide information on customers to help with outbound lead generation |
| Acquisition funnel tools | Streamline the sales funnel to improve conversion rates |
| AI tools | Improve operational efficiency with artificial intelligence, automation and generative AI |
| Marketing management tools | Manage different parts of the marketing strategy |
| Automated tools | Automate marketing emails and other functions |
| SEO tools | Enhance performance on search engines |
| General tools | Provide a helping hand with virtually every aspect of lead generation! |
Segmenting And Organizing Leads
The thing about leads is they’re all different… but they tend to fit quite nicely into groups.
Let’s say you run a sports clothing store. You’ve got men’s clothes and women’s clothes, but you’ve also got badminton clothes, running stuff, gym and fitness wear. That’s a whole load of potential customers and possible lead categories.
Each category needs its own set of lead generation strategies.
Targeting Leads
With the strategy in place, agencies get down to business with generating leads.
There are a few different ways to do this. Here are some of the most popular…
| The Lead Generation Technique | How It Works |
|---|---|
| Outbound lead generation | Reaching out directly to potential customers by telephone and email |
| Inbound content marketing | Creating web content that builds brand authority |
| On-page SEO | Crafting pages that perform well on search engine results pages |
| Social media marketing | Connecting with potential clients on social media and building an audience |
| PPC advertising | Posting pay-per-click ads |
| Content partnerships | Partnering with influencers and leading content creators |
Remember, this is just a taster. The best lead generation companies will get super creative in the way they bring in new customers for their clients.
It’s also important to remember that different leads are found in different places. Around 60% of Gen Z customers use Amazon for product discovery, while around 40% use Walmart. Lead generation professionals need to be aware of which channels their possible customers are using.
Testing The Strategy
You might think generating leads is the last step in the process… but it’s not, not by a long shot. Every strategy can be better. And even the best strategies can connect with the target audience in a more profound and engaging way.
This is why testing is such an important part of the job description for lead gen agencies. By gathering lead data and looking at key metrics, a top lead gen company can gain valuable insights on what’s working and what’s not.
What Type Of Services Can Lead Generation Agencies Offer?
So now you know a bit about what lead generation is and how agencies operate, let’s broaden the focus a little bit. You see, an effective lead generation agency does far more than just send potential customers to their clients… they offer a wide range of services.
Qualified Lead Generation
There’s a world of difference between a qualified lead and an unqualified one, or a hot lead and a cold one. They’re like chalk and cheese, venus and mars.
Put yourself in the business owner’s shoes. What would you prefer… the guy who has never heard of your company and accidentally autofilled his email address on your data capture form? … or someone with a genuine need for your products and services?
It’s always gonna be the second one. This leads is so much easier, quicker, and cheaper to convert. Lots of companies can generate leads, but the best in the biz will set themselves apart by offering qualified and hot lead generation services.
B2B Lead Generation
Different types of businesses need different types of lead generation. For instance, a typical business-to-consumer (B2C) retailer will need marketing and sales professionals who can connect with their target audience. With business to business (B2B) organizations, it’s not quite the same…
B2B lead generation tends to be a bit more technical. It might be service and subscription oriented, and the biggest clients might need a dedicated management team to make sure they’re getting the best results.
There are lots of crossovers between B2B and B2C, sure… but business-to-business lead generation efforts require their own special set of skills. More than 40% of B2B marketers cited direct one-to-one outreach as the biggest factor in securing qualified leads.
Lead Nurturing
Some lead gen agencies will just identify the leads and let their business clients do the rest. Other lead generation companies take a more active role. They will nurture active leads, encouraging them along the path to conversion.
Remember, it’s conversions, not leads, that drive business success. So, if the agency can generate high quality leads, and push them forwards along that buying journey, they’ll be able to charge more.
Customer Retention
You might even find lead generation agencies who go even further… following their generated leads beyond the point of conversion. But why bother… they already converted?
To create loyal customers, that’s why. There are lots of different estimates out there, but the ballpark figure is that converting a new customers costs between 5 and 25 times more than keeping an existing one.
This makes customer relationship management a really big deal for businesses. Not all lead generation agencies are going to offer this, but business clients love the ones that do…
Local Lead Generation
Local lead generation is an interesting variation on the model. Rather than casting your net wide and reeling in as many fish as you possibly can, you keep things local. You focus your efforts on a smaller area, and you work with businesses with a local focus.
This is gives agencies real opportunities to carve out a niche. The internet and digital technology has allowed small business to go global, selling products and services across the world. And this is great… but it does mean that entrepreneurs from across the globe end up battling it out in an increasingly saturated market.
There’s no danger of this in local lead generation. Agencies can offer lead generation solutions in specialized niches in untapped markets, becoming the go-to in their area of specialty… without the stress of the crowded market.
Click here to discover more about my favorite method of local lead generation…
Search Engine Optimization
Search engine optimization and lead generation tend to go hand in hand. After all, lead gen agencies are big on content marketing, and they craft pages that encourage website traffic… so they certainly know their way around Google.
Some agencies might want to turn this SEO expertise into another revenue stream. They may decide to offer standalone search engine optimization, alongside their lead gen company duties.
Lead Generation Audit
Lot’s of businesses opt to handle lead gen themselves. They know their customers, they know their products… they know the problems they solve and the segments they target. So they just get it done, keeping it in-house.
But lead gen agencies can still play a role here. They can offer lead gen audits… basically like a doctor’s checkup on how those lead generation and nurturing strategies are going. They offer their expertise, their advice and consultation, and they get paid as a result.
Rank And Rent
What is rank and rent? Well, it’s not really a service… but it is something that effective lead generation agencies can do to make money. This basically involves taking a website, and optimizing it both for the search engines and for the sales pipeline.
The site climbs up the Google rankings for specific search terms. Let’s say… “pest control in Bluemont, Virginia”. Those business owners who provide pest control services in the Bluemont, Virginia area… they notice this upstart of a website outranking them across all their key words, and they want to know what’s up.
The lead gen agency who owns the site can then lease the website out to the local business owner. The business owner becomes their digital tenant, and the lead gen agency gets a new revenue stream.
Hit the link right here to find out more about how this model can work for you…
How Does A Lead Generation Agency Benefit Businesses?
One of the best things about lead generation marketing is that it’s totally mutually beneficial.
- The clients gets great leads they can easily convert.
- The agency gets a solid income from their efforts.
- It’s win-win!
All the best business models are based on this dynamic. If you’re having to sell something people don’t want, or if you find yourself overselling your service to make it sound better than it is, it’s not going to end well. Genuine value… that’s got to be the bottom line, every time.
So let’s look at that value in a bit more detail… what is it about lead generation agencies that makes them so vital to businesses?
Better Quality Leads
The most obvious benefit is just that the leads are better! A lead gen agency knows all about how to generate leads… so they give their business clients the very best quality.
This is an important angle for lead generation companies to explore. Yes, agencies can help with nurturing leads and boosting the lead conversion rate. But what if your leads are so good they barely even need nurturing…? This might be the best option for all parties.
Reduced Conversion Cost
The average cost to convert a new customer can vary a lot. In the SaaS industry, it’s around $702. For B2B businesses, it’s about $536. In ecommerce, it’s $70.
In all cases, the more cheaply you can convert your customers, the better. You don’t want to be actually losing money whenever you sell a product or service…
Streamlined Marketing
Marketing and sales development can be a real pain. There’s just so much that sales professionals have to do each day, and so little time to do it in. Identifying customers, reaching out to them, nurturing leads and making conversions happen… yeah, it’s a lot.
Lead generation companies take a lot of the strain away from marketing teams. They can handle outbound campaigns, reducing the work loads for marketers… or, even better, they can create inbound content and pages that bring in leads on an ongoing basis, with almost no effort required.
Better Business Resilience
When leads dry up, customers dry up. And when customers dry up, businesses die. This might sound dramatic, but it’s true. Businesses need a solid lead generation strategy… they either do it themselves or they get someone else to do it for them.
Whether it’s B2B lead generation, retail, or something else… the best lead generation companies are keeping businesses alive and ready to grow.
Increased Market Share
At the the very top of the sales pipeline, customers might have a few different options. You’re looking for someone to install a new filter system for your pool. You do a quick Google. And you find five or six companies who can do that in your area.
As potential clients move through the pipeline, the number of options gets smaller and smaller. They learn more about the different service providers available to them, and then they make their choice.
What happens when the customer makes that choice? Do they pick a couple of options and have them race each other to your property? Probably not. You pick one and not the other… this is why lead generation is so effective in increasing market share.
Enhanced Customer Retention
Even without additional customer retention and customer relationship management services, a lead gen agency e can still boost those all-important retention rates.
This is because customers are all about that whole experience. Here are two scenarios to think about…
- The customer is running out of time. They need a service right now, and companies aren’t getting back to them. They do another Google, find a number, and call up a company. The company says they can offer the service next Tuesday, and the customer signs up.
- The customer finds the company’s website easily. They leave their details and the sales team gets back to them a few hours later with a load of different options. The customer chooses their service option and sets an appointment.
The second option is how lead generation should work. The lead generation website and form was right there, easy for the customer to find, and the sales and marketing teams were quick to follow up. This second customer is far more likely to turn into a loyal client.
How Does It Stack Up? – Comparing Lead Generation Efforts With More General Marketing Services
So lead generation definitely fits into the wider marketing landscape, but it also stands alone. It has its own techniques, its own aims, and its own results.
Let’s see how it stacks up against more general marketing services…
| General Marketing | Lead Generation | |
|---|---|---|
| The Desired Outcome | General marketing is mainly about increasing the profile of the brand, so that more potential customers know what it’s all about. | Lead generation is about bringing in prospects, who can then be converted into customers. This conversion is the aim. |
| The Speed | General marketing is usually a little slower than lead generation, and takes time to achieve its desired outcome. | In most cases, lead generation is faster than general marketing, and leads can be acquired and converted more quickly. However, some types of leads may take longer to nurture. |
| The Techniques | General marketing uses social media strategies, SEO, direct outreach, and a range of other paid and organic initiatives. | Lead generation techniques are very similar to those used in general marketing. But the way in which they are used will be specifically geared towards attracting leads. |
| The Scope | General marketing has a broad scope. As it’s about generally raising the profile of the business, marketing requires a comprehensive approach that brings together lots of different business aspects. | Lead generation is more targeted. Teams are committed specifically on the bringing in new customers, and so they can focus their efforts on developing these leads and prospects. |
| The Effectiveness | General marketing is certainly very effective when done right. Most types of business can’t survive without a strong marketing campaign in place. | Lead generation is just as effective as general marketing, and may be more so for businesses who need to bring in customers and grow quickly. Both general marketing and lead generation are vital. |
Starting A Lead Generation Agency
If you do decide to go down this path, how do you take that first step… how do you go about starting a lead generation agency? Check out this step by step guide to getting started.
Step #1 – Deciding On Your Niche
As we’ve seen, just bringing in ‘leads’ isn’t going to cut it. Business clients want easy conversions. So, you need to specialize. You need to do your research, identifying where the target audience can be found.
You can work in a few different niches, but you don’t want to spread yourself too thin. Remember, you want to be the go-to source of leads in your field.
Step #2 – Getting To Know The Legal Landscape
You’ll be doing a lot of data capture involving contact details and other info. This means you need to be aware of the regulations that apply in your area of operation.
You’ll have to meet the strict requirements of the California Consumer Privacy Act, or CCPA, for example if you operate in California. Bear in mind that other states have their own regulations, which might be different.
It’s not just data capture either. If you’re sending out emails or any other form of communication to your possible leads, you’ll need to keep CAN-SPAM in mind. CAN-SPAM applies right across the USA, and governs what you can and can’t do during outbound lead generation.
Step #3 – Developing Your Brand
Branding is always a big part of starting a company. Your prospective clients need to know who you are and what you offer, otherwise you’re just lost in the crowd.
Think back to Step #1 here. Consider the niches you operate in and the businesses you want to nurture leads for. This needs to be reflected in your branding.
Step #4 – Deciding On Your Budget And Your Rate
While lead generation software can help you out (a bit more on that later), generating leads is still an expensive business. If you want to bring in qualified leads that are going to actually sell, you need to be prepared to spend some money.
But how much? This is where your analysis comes in. Examine the average cost of leads in your field and consider how you can make savings. Find a balance between keeping costs low and delivering a reliable stream of super qualified leads.
Of course, it’s not just costs that has an impact on your budget. Your income will help you balance the books here. Think about how what kind of rates you can expect for a lead generation company in your industry.
Step #5 – Choosing Your Revenue Model
In other words… where’s your revenue coming from? You’ve got a few choices here…
- Getting paid for every lead you bring in – This is sometimes known as the ‘front-end model’ because you’re bringing the lead right up to the front end of the business and they do the rest.
- Getting paid just for converting leads – The back-end model, because you’re not getting your fee until the lead reaches the back-end for your client.
- A mixture of the two? – The hybrid model because… well, it’s a hybrid. You get a reduced fee per lead and a larger fee per conversion.
Bear in mind that companies may prefer you to work on the back-end model, just because this gives you more reason to give them good quality leads.
Then again, the front-end model is cheaper per-lead – so businesses that are super confident in the way they nurture leads might prefer this route.
Step #6 – Selecting Lead Generation Techniques
This is where the fun stuff starts. What are you going to do to bring in these leads? Maybe you’re placing ads on social media platforms, perhaps you’re keeping things organic with strong SEO and a well designed landing page, or it could be your using data capture forms to gain contact details.
You’ll need to refer to your research from the last step here too. This will give you some understanding of how much each lead gen technique is going to cost you, and which ones offer the best chance of success
Don’t expect to just choose one of these techniques and stick to it. Your sales process needs to be wide ranging, bringing in leads from different sources to give your clients the best possible chance of high conversion rates.
Step #7 – Putting Lead Generation Tools On The Case
Remember those tools we discussed earlier on? You’re going to need to start choosing which lead generation software you want to use to build your toolkit.
Think about what you need help with – maybe it’s social media marketing, performance analysis, workflow management, or something else. Then, do your research and find the best rated tools to help you make this happen. The tool needs to be a great fit for you and your business, not just the cheapest one or the one with the best review.
Step #8 – Analyzing Your Progress
There’s an old principle that can be applied basically to all aspects of life, work and business – if you measure it, it will improve simply because you’re focusing more attention on it. The flipside to this, of course, is that anything you don’t measure is in serious danger of going badly wrong.
So how will you measure your lead generation efforts? Perhaps you’ll look at volume of qualified leads, or conversion rates from social media marketing programs and other endeavours.
Maybe you’ll look at something a bit harder to measure… like the relationship with your client’s sales and marketing teams. The idea is to end up with a rich collection of datapoints you can use to improve and develop your services.
Step #9 – Scaling Your Lead Marketing Efforts And Results
Once the first four steps are out of the way, you are well on your way to generating high quality leads and making a difference for your partners. This is where you need to grow, scaling your business in a sustainable way.
Automated tools can help you do this to some extent, but you will need to grow your teams too. You may decide to hire new personnel, or bring in freelancers and outsourced personnel to keep your business firing on all cylinders. Scaling should be sustainable – reach too far too soon, and you might find that your resources are stretched to the max.
Step #10 – Building Lasting Relationships
It’s not just about the leads you generate… it’s about the friends you make along the way. Ok, you got me… it’s totally about the quality and volume of the leads you generate, but you’ll still need to build strong business relationships with the leaders in your field.
Think about those key decision makers, the people who make the call on who gets the key contract. Who are they going to choose… the lead gen agency they have a great relationship with, or the one that doesn’t respond to emails and no one else seems to have heard of?
Make sure you’re the first name on the list for all those those CEOs, marketing and sales teams, and key lever pullers in your industry. Get out there, network, and make it happen.
Learning The Ropes – Picking The Best Lead Generation Courses
You might have noticed something in that ten step program for launching your lead gen agency? This can be hard… really hard. So this is why people looking to break into the lead generation company market tend to look for a little help along the way.
They turn to the experts, and they sign up for a course.
But there are plenty of lead generation course out there, you’ve probably seen a whole bunch of them. So how do you pick the best lead generation courses for you?
Find The Value
This is true for all courses and programs. Where is the value coming from? I’ve seen too many programs that say things like “the easy way to make seven figures”, or “get $100k a month without lifting a finger”… but this is meaningless without a real value proposition.
We’ve already looked at the benefits of great lead generation. So ask how the course connects with those benefits?
If you’re learning something like local lead generation, then you might be solving a genuine problem for niche businesses in your area.
If you’re just learning how to write a cold email and pick up a phone… then I’m not sure where this value is coming from.
Decide What You Want To Get Out Of The Program
I tend to look for three main points when I’m reviewing a program…
- Are the coaches and the materials top notch?
- Is there a real route to great profits when you sign up for the course?
- Will this course give you the freedom to live life the way you want to live it?
Now, I know that everyone is different, and you might have your own list of ‘must-haves’ for a course. This is fine. You’ve just got to be sure about what you’re getting out of it.
Make sure the course helps you develop the right skills you need. At the end of the program, you need to be able to offer lead generation services that clients actually want to pay for, so make the results are worth it.
Get To Know The Gurus
Most people aren’t out to scam you. Remember, running a scam is illegal… it’s fraud. So most people are not going to sting you and run off into the night with your money.
Of course, that doesn’t mean that every course is worth your time and money. You still need to take your time and get to know more about the guru and the program before you sign up.
Check out some testimonials, look for ratings on TrustPilot and Yelp, weigh up the complaints and issues on the Better Business Bureau. Speak to the guru yourself before committing to anything, and use any free trials and cooling off periods. This will give you a good idea what the lead generation course is all about.
My Guide To Lead Generation Companies – The Conclusion
It’s time to bring this guide to a close. We’ve covered quite a lot… from defining what lead generation agencies actually do, through to identifying the best lead generation companies and courses out there in the market.
So what’s the conclusion here? Well, I would say that lead generation is one of the most effective ways to make money in [YEAR]. There are lots of different approach you can take as you break into the market, but I would put local lead generation at the very top.
Here’s why…
- With local lead generation, you can get in on the ground floor, becoming the go-to for leads in your area and in your industry.
- There’s far less chance of market saturation, because you’re dealing with specialized niches that you can dominate.
- All businesses need great leads, so you’ll always have a solid stream of clients to serve.
- The whole business model is based on real value… you’re delivering a great service to your clients, and they give you good money in return. These aren’t just imaginary profits conjured out of thin air.
So how do you get started on your journey with local lead generation?
Well… you can simply check out my #1 pick for making money in [YEAR]…
My #1 Alternative For Making Money Online In 2024
I’ve personally tried all of the major online business models, along with other random ways to make money, such as:
- I’ve promoted women’s health supplements
- Posted links around Quora and Reddit posts to get people to my product links for affiliate commissions
- Tried to become a mini online influencer for brands
And I made money with all of them, so trust me when I say there is no “perfect” business model.
That being said, my #1 recommendation for making real money online is, hands-down, the Digital Rental Method.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, starting a Digital Rental Method business is for you. This such a great way to get into the world of local lead generation…
Why?
1)Time commitment: If you have an hour or two per day, you can do this. Even if you want to drop everything and commit fully, that works, too.
You don’t have to be constantly working to make money. The income you generate is recurring.
Imagine taking off for a month to places like Hawaii, Paris, National Parks, & other spots people only dream about – all while collecting dozens of little $500-$2,000 checks. It’s like a dream come true.
Other lead generation models can be seriously lucrative, but it’s hard to find that work life balance. Digital Rental Method is very different…
2)You Own & Control EVERYTHING: I’m not a fan of any business model where you’re not in the driving seat.
This is one of the things that makes Digital Rental Method so great. You’re in control, you’re the boss, and you own everything.
3)It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
Again, you might make money from other lead generation models, but you won’t achieve this kind of scalability. Just a few clicks and a few minutes of your time… that’s all it takes to drive big returns for your business.
4)Great Margins: When you follow the Digital Rental Method, your profit margin is nearly 100%.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases and the effort put into creating the next property decreases.
Best case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
5)You’re Helping REAL People: Following the Digital Rental Method means you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If we can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put FOOD on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So what will you do? You could keep looking at other lead generation options… like B2B lead gen, or maybe adding more strings to your bow with consulting and nurturing…
Or you can make the right choice for you, right now… you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people who need it.
If this sounds like you, click here to see how it all works.
