Lead generation is the key to any successful business. Even the best product or service is worthless if you can’t get it in front of potential buyers. Lead generation is all about connecting potential buyers with the services they need.
This first post in our series on how to make money online will focus on how you can use a lead generation model to start your own internet-based business. Although the term “lead generation” can also refer to connecting potential buyers with products, our focus in this post is on services. We will cover products in future sections on ecommerce and affiliate marketing.
I believe that lead generation is a great first-tier strategy for breaking out of the traditional employment system. You can start your own lead-generating website without leaving your current job. This can allow you to build up the business you will need to support yourself before you kiss the 9-to-5 goodbye.
Driving Leads to Your Own Business
Many people start lead generation websites to support their own business launch. For example, someone who wants to start a business consulting firm might develop a website designed to meet the needs of his potential client base (small business owners). In theory, the basic steps required to start your own web-based business are simple:
- Define or develop a skill that people are willing to pay for;
- Develop a website that promotes that skill;
- Promote that website using search engine optimization or other inbound marketing tools.
In practice, though, it isn’t always this easy. The first step is often the hardest. How do you pick a skill to base your business upon? Of course, there isn’t any one-size-fits-all answer. Each person will need to choose based on their expertise and interests.
Some people will tell you to build your business around your passion. The rationale is that you will be more likely to stick with something if you have a genuine interest in it. This may be true in some cases, but I don’t recommend choosing a business based on your passion alone. Here’s why:
- A business that starts out as a passion can become a drudgery just as quickly as any other. Just because you start out with a passion for baking doesn’t mean that you will still be wild about baking after having been in the industry for a year.
- Most people’s passions aren’t as marketable as their skills. It may be that building a business based on your skill will free up your time to focus on your passions.
While you shouldn’t hate what you do for a living (after all, you are trying to move into a more meaningful life), I recommend that you be passionate about your passions. Be practical about your business.
There is a saying in the writing world: Write what you know. I recommend applying that same philosophy to your new business. Build a business on the area where you can best leverage your existing expertise. Make a list of the things that you are good at. If you are a police officer, think about private investigations. If you are a high school basketball coach, think about private coaching clinics or instructional videos. You get the picture. Once you have that list, run a few searches to see if there are others that are selling similar services online. If so, you may have found your niche.
If you don’t have marketable skills, or if your skills are in an area that you dislike, you will need to develop them. Find industry-specific resources (like www.lynda.com) and develop your skill set. You don’t need to wait until you have the skills before you start your website. In fact, you may be able to start a website teaching others what you are learning. Chances are there are other people looking for information on the same topic.
Note: Don’t forget about other social media tools. LinkedIn in particular can be a great resource for locating groups of potential clients and networking with thought leaders in your chosen field.
Driving Leads to Third-Party Businesses
If you do a good job of capturing leads, you may be able to sell those leads to other service providers. The advantage of this model is that you don’t need the substantive expertise needed to actually provide the service. You provide the leads, and a third-party service provider does the rest of the work.
I first stumbled into this business model when working for a family business in the early 2000s. The business paid a third-party service provider for a stream of qualified leads – sometimes as much as several thousand dollars per lead. The lead generation company was really good at getting targeted content in front of people who were looking for it. When these people contacted the company, the company would collect some basic information online and forward it to our family business. We did all the work in providing the service, but they shared in the profit for bringing the lead.
To really understand this business model, you must realize that you aren’t getting paid for nothing. Lead generation for other businesses is all about core competencies. The service provider’s core competency is providing the service to the end user. Your core competency is knowing how to use the internet to generate leads. This ability to bring in business is the value that you add to the service provider. If you don’t have this skill, you will need to develop it.
Check out this video to see how to entrepreneurs were able to start a multi-million dollar company using a third-party lead generation model (providing leads to schools):
Knowing how to generate leads of this nature requires a close familiarity with the industry and an understanding of what motivates customers. But people who take the time to develop this expertise can do well with a lead generation model.