Is Lead Generation Business Profitable? Can You Still Make Money With This Business Model? - Ippei Blog (2023)

Is Lead Generation Business Profitable? Can You Still Make Money With This Business Model? - Ippei Blog (1)

The lead generation business model is profitable and one of the best ways to secure a passive income. But what is it? And how much does it cost to start?

In this article, we take a closer look at lead generation, including the pros and cons of the business model. We'll also cover topics like how much money you can make. Plus, how to become a digital landlord. And why starting a local lead generation business is the best way to make money online in 2022.

What Is The Lead Generation Business Model?

Lead generation is a way to drive more sales. And how to find more people to buy the product or service offered by small businesses. You're like the middleman. But you don't own any product. And you don't need to invest a ton of cash upfront. Instead, your only job is to drive to your offer.

Then get leads that you sell for a profit. (Think of platforms like HomeAdvisor or Thumbtack). But with local lead generation, your focus is on a specific location. And in a highly targeted niche. So not only is local lead generation less competitive. But do it right, and it can give you a steady cash flow.

Pros & Cons Of Lead Generation

No business model is without disadvantages and risks. A few pros and cons of lead gen include things like:


A recession-proof business model that's in high demand and easy to validate.

Low startup costs, and you don't need to rely solely on paid advertising.

You own the websites and the leads. So you have full control over your business.


Ranking websites is time-consuming.

The business model requires a learned skill set.

(Video) Lead Generation Business - Easy Money? Here's Why I Quit

Finding business owners who want to pay for your leads can sometimes be challenging.

How Much Does It Cost To Start A Lead Generation Business?

Lead generation is profitable. Plus, it doesn't cost much to get started. And because you're providing a valuable service for local business owners, you can make a lot of money. That's the power of selling leads. But you need to generate a qualified lead stream. And that includes a few non-negotiable costs like:

Domain & Hosting

$10-$20/year for your domain and $5-$18/month for hosting on platforms like Namecheap or Siteground

Call Tracking Number

$9-$12/number with software like CallRail

Secure A Google My Business

You can use a free Gmail account

(Video) Why Lead Generation is a HORRIBLE Business Model // Sweaty Startup 159


$6-$24/month on platforms like Google Workspace

Third-Party Lead Generation Software

$300-$2000+/year with options like SEMRush and Mangools

(Video) Ippei and Dan Review: Pros, Cons, and Alternatives

If you can generate leads that convert and keep your clients happy. You will make money with this business model. (Like this student in our lead generation training program).

~Peter's Story:

What Are Popular Lead Generation Strategies?

I prefer the rank and rent business model. Not only is it a proven concept. (And how I amassed an income of $52K/month). But with the skills taught in our local lead gen program, it's a low-risk and low-cost way to make money online.

The program's been live for almost a decade. And it now has over 7000 students. Plus, our training provides real-life results. And the ranking strategies you learn can handle any curve ball Google throws. But there are other lead gen methods to consider like:

Lead Generation Strategies

  • Email Marketing:A way for lead generation companies to capture and nurture leads from a potential client. (A person that ultimately becomes a paying customer). But you need to know how to write concise emails with compelling headlines. Emails only see an averageopen rate of 21.33%. So you should consider investing in tools likeMailChimporDripto help with customized campaigns and marketing automation.

  • Sales Funnels & Landing Pages:Grab the attention of your target audience using compelling copy and a clear call to action. But even the best sales funnels and landing pages only get you around 2.4%-4% conversions. So you need to have an irresistible offer. Something that will drive a potential buyer to click through your lead magnet and landing page. But you can use tools likeLeadPagesandOptinMonsterto streamline your process.

  • Paid Advertising: (Google Ads, Facebook Ads, YouTube Ads, etc.) You and your team need to be the best marketers. So, know how to design ad campaigns that convert. And how to create a unique angle with an offer people can't refuse.

Is Lead Generation Business Profitable? Can You Still Make Money With This Business Model? - Ippei Blog (2)

You need to take the time to learn the skills to turn a potential lead into a paying customer if you plan on using this strategy. Becausepaid advertisingis expensive and costs continue to escalate. So know where your audience hangs out. And make sure you're advertising on the right platform for maximum exposure. Also, be sure to bill your client's ad spend separately from your fee, or you risk making no profits.

But you can use tools likeGoogle Analyticsor lead gen tools likeLeadFeederto optimize your marketing strategy. But be ready to shift gear fast when things aren't working. Of course, you can use various B2B lead generation strategies. And obtain leads from multiple platforms. But no matter what method you choose, the end goal stays the same. Get leads for small business owners that you can sell for profit.

Can You Make Money With Lead Generation?

Yes, you can make money with lead generation. And if you can generate a steady stream of high-quality leads. Then, you will make a lot of money with lead gen. The lead generation industry was valued at over $300.7 billion in 2020. And it continues to grow at 15.6%.

The key is to know how to get your leads to convert. And how to drive purchase-ready customers to your offer. So you need a lead generation strategy that will attract a potential customer. However, if you learn how to build and rank websites that reach the top of the SERPs, you own prime real estate and a steady cash flow. Just like this student in our program was able to achieve.

~Helen's Story

Once you're at the top, your lead gen properties are front and center for people armed with purchase intent. But, of course, it takes time to rank your sites. So, you need to learn skills like:

  • SEO & Google Ranking Factors
  • Digital Marketing & Google Analytics
  • Content Marketing & Copywriting
  • UX & UI

Organic search traffic is difficult to obtain. And Google is getting less willing to hand over traffic. Plus, with its constant algorithm changes, you need the skills to get to the top of the search engines. Like the ones we teach in our lead generation training.

Is Lead Generation Business Profitable? Can You Still Make Money With This Business Model? - Ippei Blog (3)

But once you know how to drive organic online traffic. You can write your own paycheck. Plus, because the lead gen model is a low-cost investment, you just need to get your systems streamlined. Then rinse and repeat. And there's no limit to how many websites you build. Or how many lead gen assets you own. (I have over 80).

(Video) 110 Lead Generation Sites In 10 Months!

Is Lead Generation In Demand? And Who Are The Best Lead Gen Clients?

Yes, lead generation is in high demand. Leads are one of the most critical factors in business. And small business owners need a stream of high-quality leads that convert to paying customers. But most lack the skills or don't have time.

However, 27% of business owners depend on organic traffic for lead generation. So if you can prove your service will increase their ROIs. Or if you can make their company stand out from the competition. Then, your services will be in constant demand. But not all clients are a good fit for the lead generation business model. So you need to do some research before you choose your niche. And consider things like:

Lead Gen Client Criteria

  • Do they provide a product or service people want?

  • Is there a demand in the market?

  • Do they have a good product to audience fit?

  • What's the level of competition in this niche?

You want to pick a niche with enough demand and competition to have options when it's time to sell your leads. So leverage a lead generation tool like Whitespark or SEMRush. (To check out the competition and assess how difficult it will be to rank your lead gen property).

Pro Tip: Organic traffic takes time. But it's more sustainable long term than paid advertising. Plus, you can earn a steady cash flow for your skills. And scale your lead gen business to make a passive income.

How To Become A Digital Landlord

Lead generation (also known as rank and rent) is a low-cost way to start and scale an online business. Unlike traditional real estate, you don't need significant capital to build and rent your digital assets. Domains cost around $10/year, and hosting sits at about $25/month. Add in costs for your tracking ($15/month). And you own an asset that can earn you $500-$2000+/month.

Is Lead Generation Business Profitable? Can You Still Make Money With This Business Model? - Ippei Blog (4)

Building your lead gen website like the one above takes about 10-15 hours and 6 weeks-6 months to rank. (I published that site above in 2015. And I've been earning $2000/month for the last 8 years). But once your site is at the top of Google, it has insane value.

Start bringing in leads you sell to local business owners to capitalize on that value. And after your site is rented, it requires little to no maintenance. Leaving you time to scale your lead generation empire like this lead gen student.

~Kelly's Story

Is Lead Generation Worth It?

Lead generation is worth it. Not only are you providing an essential service. But you offer value once you know how to rank websites and get to the top of the SERPs. And business owners are willing to pay serious coin to get a piece of digital real estate that's front and center for their target audience.

Moreover, you can do lead generation part-time from anywhere in the world. And you don't need to spend much cash to make big bucks with the business model. Of course, it takes time to rank your sites. But once they're at the top, they're like digital billboards. And become a lead magnet generating a steady flow of high quality leads you can sell for profit.

Why Lead Generation Is Our Number One Recommendation

Local lead generation using websites you build and rank is our number one recommendation. Not only is it the most effective lead generation method. But you don't need to rely on paid advertising. And with over 41,683 ZIP codes in the USA, the opportunities are endless. Each ZIP code represents a targeted area.

Is Lead Generation Business Profitable? Can You Still Make Money With This Business Model? - Ippei Blog (5)

Dial down and get niche-specific, and you have a lead gen site that own and isn't wide open to competitors or easily duplicated. Of course, it takes time to rank your sites. (You need to do research and have a marketing strategy). But if you can learn the skills you need to leverage Google. And know how to manipulate SEO tactics for each lead generation campaign you build. You can get your lead gen property (like the one above) to the top of the SERPs in as little as 6 weeks.

Then you own premium real estate. Rent your sites, and you could make up to 95% profit margins. Plus, the sites and leads belong to you. So if you find a business owner that's not the ideal fit, you can pivot quickly and go to their competition. And your money will keep coming in on autopilot.


The lead generation business is profitable. Plus, it's a chance to make real money online in 2022. Learn how to become a lead magnet with the skills taught in our local lead generation coaching program, and you can secure a passive income. Of course, starting a lead generation company takes time and training. But, you can build multiple sites at a time. And from anywhere in the world.

Plus, once you know how to leverage tools. And learn how to drive high-quality leads that convert for small business owners. Then, you can scale quickly for a minimal investment. And write your paycheck every month with no limit to your income potential.

(Video) Being A Lead Generator For Your Own Biz! - Digital Marketing Solutions

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Can you make money with lead generation? ›

The lead gen business model can be lucrative, but it can also be very passive if you are using organic traffic sources, especially similar to those found with AdSense or Amazon affiliate sites.

Is lead generation a good business? ›

A lead generation business is a fantastic way for anyone with practical sales and marketing skills to offer a valuable service to other businesses with proven demand. You don't need to build a product, can use tried and tested strategies, and don't need to reinvent the wheel to see results.

What is lead generation blog? ›

Lead generation is the process of attracting prospects to your business and increasing their interest through nurturing, all with the end goal of converting them into a customer. Some ways to generate leads are through job applications, blog posts, coupons, live events, and online content.

Why lead generation is the best? ›

Lead generation is a process that builds visibility, credibility, trust, and interest from a specific group of people (potential leads). So by focusing on lead generation, it can help drive traffic from high-quality prospects. And with high-quality prospects comes high-value customers.

What is a lead generation business? ›

What is a Lead Generation Business? As mentioned earlier, a lead generation business acquires leads for clients who could then sell a product or service to these leads. Your clients pay you a fee since you are able to direct intended demand towards their products and services.

What is lead generation and how it works? ›

What is lead generation? Lead generation is the process of generating consumer interest for a product or service with the goal of turning that interest into a sale. In online marketing this typically involves collecting a visitor's contact information (called a “lead”) via a web form.

How do you start a profitable lead generation business? ›

You can read our full reviews of each business formation service here.
  1. 5 Steps to Start a Lead Generation Business. ...
  2. Step 1: Choose an Industry. ...
  3. Step 2: Develop Client Relationships. ...
  4. Step 3: Determine Your Commissions and Fees. ...
  5. Step 4: Nurture Leads. ...
  6. Step 5: Analyze Results.
12 Jul 2022

Who needs lead generation? ›

B2B companies need a lead generation funnel for the simple reason that, in most cases, a purchase takes a long time to develop. A 2016 survey found that 48% of companies say leads require a long cycle before making a purchase. 48% of companies say leads require a long sales cycle before making a purchase.

How can blogs be used as a lead generation tool? ›

2: Blogging gives your visitors a reason to convert. Following up from reason number one, blogging is a great lead generation tool because it provides value to the reader – and value makes them want to convert.

How do you generate leads through blogs? ›

Here are 12 techniques to improve your lead generation marketing strategy.
  1. Use CTA's in the text of your blog posts. ...
  2. Try the “Hello Bar” ...
  3. Offer your readers exclusive content. ...
  4. Offer your readers perks. ...
  5. Try a welcome redirect. ...
  6. Leverage slide-in CTA's. ...
  7. Blog summary downloads. ...
  8. Leverage margin banners.

How do you create a lead generation website? ›

10 Lead Generation Website Best Practices for a Website that Delivers Leads 24/7
  1. Start with a solid website.
  2. Build trust.
  3. Make contact easy.
  4. Consider your end goal first.
  5. Add quality forms.
  6. Use conversion opportunities that address each stage of the buyer's journey.
  7. Create buyer persona and pillar page-specific content offers.
22 Dec 2020

Why is online lead generation important? ›

Inbound lead generation helps small businesses in multiple ways. Here are just a few: Build brand awareness and visibility. Online lead generation activities help you in building brand awareness and generating customer interest in your products and services.

What is paid lead generation? ›

PPC advertising

Paid lead generation marketing campaigns also have more detailed lead capturing forms. This is done for a simple reason – you pay money for traffic, and you want your business leads to be as targeted and enriched as possible from the beginning.

What are the advantages of lead? ›

An advantage is that lead has a low melting point, so it is easy to shape and mold the bullet. Bullets were originally either made out of stone or clay balls. However, as firearms advanced and developed, bullets changed very slightly. Bullets remained round, only changing their diameter.

What does lead generation mean in marketing? ›

Lead generation is the process of getting people interested in your business and gradually moving them through a pipeline to become paying customers. Some people still have a perception of lead generation as big email blasts and pushy salespeople. But today, these techniques are no longer successful.

How can you improve sales lead generation answer? ›

Here is an inspirational list of tactics and tips you could look into to boost your sales leads.
  1. Get in as many conversations as possible.
  2. Generate a targeted list of business contacts.
  3. Send cold emails.
  4. Make warm calls.
  5. Use Marketing Automation to nurture your leads.
  6. Set up a live chat on your website.
21 Jul 2022

How many types of lead generation are there? ›

The lead generation typically falls into two main categories: Outbound lead generation which generally include direct mail, advertising, cold calling and email marketing. Outbound lead generation includes blogging,SEO, social media, PPC.

How do you generate local business leads? ›

Here are the five easiest, most affordable, and most high-impact lead generation strategies for local businesses: Use targeted Facebook lead ads. Create a localized lead magnet.
  1. Use targeted Facebook lead ads. ...
  2. Create a localized lead magnet. ...
  3. Run a local contest or giveaway. ...
  4. Create a localized landing page. ...
  5. Go offline.
17 Sept 2019

What is lead generation Interview Questions? ›

Lead Generation Interview Questions and Answers
  • What skills do you have that make you a lead generation expert? ...
  • State some of your significant accomplishments in lead generation? ...
  • How do you motivate your lead generation team? ...
  • What lead generation tools do you use or are you familiar with?
22 Jun 2020

How do I start a lead generation business on youtube? ›

How to start a Lead Generation Business in 2022 - YouTube

Is lead generation sales or marketing? ›

Lead generation is part of marketing with sales being in charge of closing the leads so it makes sense that these departments are aligned when it comes to lead generation.

Why lead generation is key for business growth? ›

It is critical for a business to generate leads in order to succeed. Most firms will lack the sales and consumer base necessary to develop without leads. Customers are fickle, so companies can't count on their instincts.

Why is lead management important? ›

Lead management is structuring potential clients' info during the sales cycle. It helps not miss important steps and have a clear picture of what works and doesn't. Using simple software allows you to save any information about the client and your interactions quickly (screen below).

How much does a lead generation specialist earn? ›

The average Lead Generation Specialist salary in the United States is $47,145 as of August 29, 2022, but the salary range typically falls between $41,955 and $52,932.

How long does it take to make money from lead generation? ›

When most B2B companies have sales cycles that are 6 months or more, it's simple math that lead generation is going to take at least that long to grow the pipeline and convert leads to revenues. It's years 2 and 3 when the big and exciting gains happen.

Is lead generation sales or marketing? ›

Lead generation is part of marketing with sales being in charge of closing the leads so it makes sense that these departments are aligned when it comes to lead generation.

How do you create and sell leads? ›

How To Sell Leads
  1. Organize Your Lead Offering. If you are going to sell leads, you have to start by establishing exactly what your product will be. ...
  2. Acquiring Leads To Sell - How To Do It. ...
  3. Build A Buyer Network. ...
  4. Establish Lead Distribution Logic. ...
  5. Build Lead Purchasing Options.

How do I get free leads for my business? ›

  1. Send effective emails. Email is arguably the most popular channel for lead generation, and for good reason. ...
  2. Track your website visitors. ...
  3. Leverage social media. ...
  4. Improve your Aesthetic. ...
  5. Optimize your blog content. ...
  6. Utilize guest posts. ...
  7. Partner with an influencer. ...
  8. Increase customer referrals.
13 Jul 2022

How much does a lead generation specialist earn? ›

The average Lead Generation Specialist salary in the United States is $47,145 as of August 29, 2022, but the salary range typically falls between $41,955 and $52,932.

What are lead generation skills? ›

There are three key lead generation skills that you need to master if you are serious about growing your online business: Copywriting. Generating traffic. Funnel building.

What qualities should a successful lead generator have? ›

We are going to take a deep dive into what five qualities we think the best people in the lead generation industry tend to have.
  • Nurturing Customers. ...
  • Knowing Social Media. ...
  • Putting Yourself in Customer's Shoes. ...
  • Skills of a Web Designer. ...
  • Creating Great Content. ...
  • Top Lead Generation Qualities Summary:

What is the role of a lead generator? ›

Job Overview

As a lead generator, it's your job to set up appointments and find potential clients for the sales team. You're the first step in the prospecting process, and sales teams rely on your persuasive abilities and creative methods of finding potential customers.

What comes after lead generation? ›

Sales qualified leads will move onto the next stage, while marketing qualified leads will continue to be nurtured until they are sales-ready. Once a lead is determined to be sales-ready it will be passed onto the sales team where the transaction will take place.

What companies buy leads? ›

17 businesses that allow you to buy leads legally
  • 1 - Cognism. Cognism is the best way to buy leads online. ...
  • 2 - ZoomInfo. ZoomInfo is a data provider that empowers corporate teams with business to business sales leads. ...
  • 3 - Lusha. ...
  • 4 - MegaLeads. ...
  • 5 - D&B Hoovers™ ...
  • 6 - Uplead. ...
  • 7 - DiscoverOrg. ...
  • 8 - Seamless.AI.
4 May 2022

How can I generate more sales? ›

Increase sales
  1. INTRODUCE NEW PRODUCTS OR SERVICE. Provide a broader range of products or services for your clients. ...

How do you find customer leads? ›

Top 7 Sales Lead Sources
  1. Referrals. Referrals from your best clients are your best source of quality leads. ...
  2. Former Clients. ...
  3. Competitors. ...
  4. Business & Sales Intelligence Tools. ...
  5. Google Resources. ...
  6. LinkedIn. ...
  7. Relationship Marketing.
27 Jul 2022


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3. Is Lead Generation Business Profitable? | Tyler Day
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4. How I Manage My $15,000/mo Lead Gen Business! Rank and Rent
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5. Businesses Will Always Need This One Thing - Local Lead Gen
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