How Much Can You Make Selling Leads?

When it comes to selling leads, the sky's the limit. The higher the return on investment (ROI), the more expensive a potential customer will be; and the lower the ROI, the less likely they are to pay for leads. Let's say you have two sources of potential customers: Source A and Source B. Source A generates more revenue in their first year and maintains their income-generating value better than Source B in subsequent time periods.

It's important to understand that you can lose money if you don't have experience in the vertical market. The value of a potential customer depends on the lifetime value of a sale compared to the cost of obtaining that sale. You may have 20 or even 200 or more sources of potential customers, and you can divide your “archived time” into a larger number of more detailed groups. Best-in-class companies close 30% of qualified sales leads, but you have control over the lead if the customer can't close it for X days.

Potential customers are essential for businesses to grow, but they don't always come as expected. There are programs, called CRM (customer relationship management) systems, that you can use to track leads, contacts, sales, and more. This is in addition to the original payment made by the customer who bought leads exclusively in the first place. Therefore, it's important to come up with an efficient plan to keep those leads and convert them into loyal customers.

Before moving on to planning your digital marketing efforts, calculate the value of each potential customer and execute your marketing based on the number of potential customers and return on investment.