Local Lead Generation Questions

SPQR

SPQR

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Hey guys,

Lately, I've been investigating lead generation for local businesses as a nice way to get some cash flow going for other projects.

I have done a bunch of keyword research on one particular high-cost service in my area ($500-$2000 per service). I have noticed that other lead sellers in this particular market are selling one lead to up to 4 businesses.

The upside is that I can multiply how much I earn from a lead by four.

The downside being that a lead is first-come, first-serve; so the fastest caller out of the four businesses will come out victorious and claim the client.

So I have a few questions.

1) Is it better to sell one lead to four businesses, or sell one lead to one business?

2) How much should I sell these leads for? (these are people requesting estimates for their project)

3) What is the traditional payment process like when selling leads? (My idea is that I work out with the business what the maximum number of leads they can handle per day is, and then send those leads throughout the week, and then collect payment every week.)
 
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1) Is it better to sell one lead to four businesses, or sell one lead to one business?
sell to one by charging higher fee stating its exclusive.

2) How much should I sell these leads for? (these are people requesting estimates for their project)
check the ongoing CPC in Adwords and estimate the price.

3) What is the traditional payment process like when selling leads?
After fixing the price, provide the first week without upfront and once you built the trust, get paid in advance.
 
Daniel16 said:
check the ongoing CPC in Adwords and estimate the price.
Click to expand...

Thank you for your response Daniel! I've been running some numbers these past few hours trying to see how profitable this will be.

I need a little bit of clarification on this part of it.

The adwords CPC is $2.40. Lets say my quotation form gets a 10% conversion rate (could be much higher, could be lower). I spend $240 for 100 clicks - and out of this I get 10 leads.

If each customer is worth $1500 to the business ($125 per month for a year), is it reasonable to sell the 10 leads to this business for $500 assuming that they're going to be able to close 2-3 sales?

Is this what you meant by "check the ongoing CPC and estimate the price"?
 
Depends too on their profit margin but more importantly, how many of your leads actually convert.
 
ok, if you going to sell the leads exclusive to one, then below price would be my suggestion.

As per your example, your spend is $240 for 10 leads. I am being in local business and also lead generation, this is how I use to charge. 100% profit margin of each lead.

$24 means, you have to charge them $48 or make it as $50 per lead.

Now you still have the quotation form leads which have not converted, it can be sold to other 3 buyers for a cheaper price .
 
SPQR said:
Hey guys,

Lately, I've been investigating lead generation for local businesses as a nice way to get some cash flow going for other projects.

I have done a bunch of keyword research on one particular high-cost service in my area ($500-$2000 per service). I have noticed that other lead sellers in this particular market are selling one lead to up to 4 businesses.

The upside is that I can multiply how much I earn from a lead by four.

The downside being that a lead is first-come, first-serve; so the fastest caller out of the four businesses will come out victorious and claim the client.

So I have a few questions.

1) Is it better to sell one lead to four businesses, or sell one lead to one business?

2) How much should I sell these leads for? (these are people requesting estimates for their project)

3) What is the traditional payment process like when selling leads? (My idea is that I work out with the business what the maximum number of leads they can handle per day is, and then send those leads throughout the week, and then collect payment every week.)
Click to expand...
what do you think its better facebook ads or google ads for local business ?
 
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