Business models
The lead generation business model
The lead generation business model: you find people who want something, and sell their enquiry to the businesses that offer it. Companies pay per lead or per customer, because winning customers is what they find hardest.
How it makes money
Companies pay per lead or per customer, because winning customers is what they find hardest. It can be built around a good website, a directory or a local guide.
Real examples
- Angi connects homeowners with tradespeople.
- Comparison sites earn by sending customers to insurers and banks.
The numbers to watch
- Cost per lead
- Price per lead
- Share of leads that turn into customers
Who it fits
Marketers who are good at search and who understand one industry.
What goes wrong
Poor leads, angry businesses and privacy rules. You must have consent to pass on someone's details.
Try it this week
Pick one local service. Ask three companies what they would pay for one good customer.
Then give it a time: one block of 90 minutes this week, in your calendar. Our playbooks have the next steps for finding your first customers.
Questions
What is an example of the lead generation model?
Angi connects homeowners with tradespeople.
What is the biggest risk with the lead generation model?
Poor leads, angry businesses and privacy rules.
Plan your first week of building it
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