A Business Plan for Providing a Lead Generation Service

by WorkFromHome on January 6, 2012

Every single business needs customers to be able to turn a profit. While people in various industries will tend to be at least somewhat skilled in their respective crafts, not everyone is skilled at the process of attracting new customers. The idea behind this business plan is to develop a method for providing businesses with new customer leads that they will pay for. Since you’ll be building a list of leads for potential customers, the business owners you work with will be able to spend their time worrying about the functions of their companies instead of trying to find new customers themselves. The end result is that both you and the business owners benefit from the relationship you build.

The Reality of This Business

One of the most basic principles of business is the idea of supply and demand. Something that’s lost on most people is that a supply without a demand is borderline useless, but a demand without a supply is something that can be turned into lots of money. If you can cultivate a list of good leads for a specific industry or service, then you are in possession of a demand that does not have a matching supply. Since it’s fairly easy to find a supply once you have a demand, it makes sense that you will be able to easily sell these leads in most cases for a fair amount of money. What’s more is that you can build different lists of leads with different demands at the same time since you aren’t tied down to any single industry. This provides a lot of flexibility and a large degree of job security since one industry going down won’t necessarily mean ruin for your lead generation business.

The Basic Model for Locating Demand

Back before the Internet was used by so many people, there was a simple method for collecting sales leads and locating demand. This method involved a piece of paper with an advertisement printed on it that included a telephone number to call. People could call the number and speak with someone who would take down their personal information. In a few days, the people interested in whatever was being sold would receive a phone call or personal visit from a salesman, and the salesman would try to make the most of the lead.

This instructive example is a method that still works today, but it requires you to strategically place your paper fliers. For example, if you were trying to promote some sort of weight loss product, it wouldn’t make sense to post one at a bar since there won’t naturally be a huge amount of demand for weight loss products at bars. However, if you posted the same flyer outside of a gym entrance, then your phone would be ringing much more often. While you might want to use a website or email address to collect personal information instead of a phone number, the idea is still solid and it can still work today if you put the effort in.

Leveraging the Internet

While the use of paper fliers is still effective to some degree, you may find it much easier to use the Internet instead. There are a number of advantages to using the Internet, many of which have to do with keeping costs low. Your upfront costs are lower on the Internet since you don’t have to pay for transportation to post and maintain your fliers. Additionally, you don’t have to pay for an endless supply of paper advertisements if you strictly stick to the Internet. The Internet also makes it much easier to keep your business organized since all of the personal details that you collect from sales leads will be in a digital format.

The Basic Lead-Building Website

To start off your business on the Internet, create a simple website that collects contact information. Use this to build your first set of leads and to qualify customers for what they are interested in. It doesn’t take much to get started with this approach, and you can even make the website using a free content management system like WordPress. There are also free plug-ins that you can add to collect and organize the information you get from your leads. While you’ll still need to pay for a domain name and some very basic web hosting, these costs can be as low as five dollars each month on average. If you decide to pay for SEO services to boost your website in the search rankings, the costs will be offset by the increased number of leads that you’ll collect.

Selling Your Leads

Once it comes time to sell your leads, you’ll want to contact businesses individually to discuss how much they feel the leads are worth. After you feel like you’ve found a company or individual that is offering you a fair price, then you can pay yourself with some of the money and use the rest to maintain your business for the months or years to come.

Related Articles:

Previous post:

Next post: