A lead generation company sells pre-qualified sales leads to clients (other companies) who are looking to expand their customer base. A lead generating company essentially acts as a middleman between its clients and those who fit their desired client profiles. Because they lack the time to focus on customer acquisition directly but yet need a steady flow of fresh leads each month, business owners employ lead generation firms and services.

You will be able to produce regular revenues without ever having to speak to the leads you are providing your clients if you can create a system that enables you to send a list of quality prospects to established firms every month.

However, it has grown more challenging to track, reach, and convert prospective customers in the fiercely competitive lead generation business. There are numerous tried-and-true techniques at the disposal of new lead generation companies, so generating leads doesn’t have to be difficult.

The most effective lead generating techniques aren’t reserved for or available to only particular businesses. You can succeed with lead generation if you have the motivation and desire. If a new agency uses the correct tactics, it can succeed.

Choose a niche, industry, or category

Conducting thorough industry and marketing research is essential for your new lead generation business. Most successful agencies have a specific niche. Finding the right niche is crucial — if you choose wrong, your chosen market will be over-saturated and very competitive. Try to find a gap in the market. 

Consider which niches pay the most per lead. Then, identify how large the market is and assess how easy it would be to target these leads (we recommend considering their Loan-To-Value (LTV)). You should also consider the scope of your services. Will you target leads in a specific field or location? Will you work with many types of companies in your niche or only a few? 

Determine fees and costs

Lead generation businesses use many different pricing models. We recommend using a hybrid approach. This approach is best for new lead generation services because it’s low-risk. 

Here’s how the hybrid approach works: your clients select how much they want to spend on advertisements and specialized lead generation campaigns. Then, you spend that amount of money on ads. As you generate leads, you pass them to your client’s sales reps, and they try to convert them. 

Your client then pays you:

• The full cost of the advertising or lead generation campaigns (so if they selected $500, they pay $500)
• A predetermined fee for each lead you generated
• A percentage-based fee for each lead that converted (usually, this fee is 10-20%)

The thing to watch for with the hybrid model is that your margins are large enough that you remain profitable. The hybrid approach has lower commission rates compared to the front-end or back-end models — so you need to be careful. 

Identify your target audience and build client relationships

Once you have identified your niche or market, it’s time to focus on your target audience and develop new client relationships. Consider the goals of members of your Ideal Customer Profile (ICP) and build buyer personas. 

Read Also: What is The Best Lead Generation Company?

We know that 95% of buyers choose a vendor who provides them with content that helps them navigate each stage of the buying process. So it’s important to identify your prospects’ pain points, motivations, and goals so you can offer a practical solution.

Next, learn how to map and optimize a customer’s journey in the sales funnel so you can gain qualified leads more systematically. Putting a system for customer journey mapping in place in advance will help you scale your business later. From there, consider how you will find quality leads and attract customers into your sales funnel.

Utilize outreach marketing strategies

Outreach marketing is all about offering a solution to your potential customers, so it should be your priority as a new business. Outreach marketing will help you to build brand awareness, establish client relationships, and grow your lead generation business.

Here are some outreach marketing strategies you could try: 

• Cold calling
• Face-to-face outreach
• Cold emailing
• Sending a connection request on LinkedIn

You should also consider investing in the following marketing tactics:

• Leveraging search engine marketing and creating targeted landing pages to attract potential clients. Using Search Engine Optimization (SEO) tools to enhance your content will also increase your organic traffic, Search Engine Results Pages (SERPs) rankings, domain ranking, and the effectiveness of your website.
• Integrating Customer Relationship Management systems (CRMs) into your strategy. A CRM will help you manage and optimize your lead generation pipeline at every stage.
• Creating a lead capture form. Lead capture forms are an efficient way to collect prospects’ contact information.
• Fleshing out your website with details about your business and displaying client testimonials. On your lead generation site, detail your business’ key areas of expertise, services, contact information, and fees.

Measure and analyze your lead generation efforts

Conversion funnel metrics are an important part of an effective lead gen strategy. Measuring your Key Performance Indicators (KPIs), Return On Investment (ROI), and conversion metrics will help you assess your performance, limit costs, boost conversions, and improve the effectiveness of your strategies.

In short: it will improve your strategy so that you can generate more revenue. 

For seasoned salespeople and marketers looking to test their talents while earning money, lead generation businesses are a great option. Don’t be fooled by the low entry barrier, though. If you send clients low-quality, uninterested leads, they won’t want to work with you. All of the strategies we’ve listed here are worth investigating because it takes effort to create a lead generating funnel that is effective.

Most agencies typically choose one to three primary channels to concentrate on. It might result in cold email, Facebook ads, or even SEO for you. However, each of them requires work, so be patient and concentrate on quality.