Lead Generation Business

How Profitable Is A Lead Generation Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Lead Generation Business? (Updated for 2024)

So you want to start a lead generation business?

And the first question that came to your mind was, “well, are lead generation businesses actually profitable?”

With a market size of $399B - there’s plenty of business to go around.

Especially considering:

You could start a lead generation business with as low as $100
Based on our data, lead generation businesses generate an average of $2.33M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a lead generation business.

Let’s dive in!

Is a lead generation business profitable?

Yes, a lead generation business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $2.33M per year with an estimated gross margin of 93%, you could expect to recover your investment within 5 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your lead generation business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your lead generation business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a lead generation business worth it?

If you’re wondering if a lead generation business is worth it, the answer is a big YES. With lead generation businesses, you have the potential to earn $2.33M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $399B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a lead generation business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful lead generation businesses case studies.

Examples Of Profitable Lead Generation Businesses

Here are a few examples of profitable lead generation businesses, and a few more details about them:

Jake Jorgovan, a serial entrepreneur and business advisor, came up with the idea for Lead Cookie, a LinkedIn lead generation and appointment setting company, after brainstorming various business ideas and realizing the untapped potential in the market. Within the first two weeks of launching, Jorgovan closed $12k of monthly recurring revenue by selling to individuals within his existing network, providing rapid validation for his concept. Lead Cookie is now a thriving company, generating between $45k-$70k in monthly revenue and boasting a team of 20 full-time members.

Is it profitable? Yes
How much money it makes: $660K/year
How much did it cost to start: $0

How I Started A $55K/Month Linkedin Lead Generation Business

Serial entrepreneur Jake Jorgovan explains how he started and grew his LinkedIn lead generation company, Lead Cookie, which now averages between $45k-70k every month with only 4-8 hours of his own time per week, and shares insights on building and scaling a successful business.

Read this case study

Read by 7,222 founders

2. Instantly AI ($19.2M/year)

The co-founders developed the tool out of necessity for their lead generation agency. Initially, they used existing tools to help their customers generate leads. However, as they scaled, the cost of using these tools, which required payment per email account, became unsustainable.

In response, they decided to create their own tool, utilizing the skills of their developer. Initially, the tool was intended for internal use. However, after discussing it with others, they recognized its unique value and its potential to benefit many similar businesses.

We noticed that as soon as we tried to scale, the prices increased instead of decreasing. — Kaevand Co-founder Instantly; (Source)

Is it profitable? Yes
How much money it makes: $19.2M/year

How Nils Schneider Bootstrapped Instantly.ai to $20M ARR in 2 Years

Discover how Instantly.ai grew from 0 to $2.4M in just 9 months by solving the problem of costly lead-generation tools for marketers with an affordable and effective AI-powered email marketing software.

Read this case study

Read by 1,035 founders

3. The Pedowitz Group ($18M/year)

Jeff and Cherie started The Pedowitz Group in 2007, leveraging their expertise in sales and marketing. They saw an opportunity to provide consulting services in the digital marketing space and quickly gained momentum through word-of-mouth and industry referrals. Today, they have achieved over $20 million in annual revenue and continue to focus on growth and providing excellent service to their clients.

Is it profitable? Yes
How much money it makes: $18M/year
How much did it cost to start: $500

How This Couple Started A $20M/Year Sales And Marketing Consulting Firm

Pedowitz Group, a $20M+ consulting agency, shares the story of how they grew their business by prioritizing customer retention/loyalty, being platform-agnostic, and focusing on strong results aligned with clients' key business objectives.

Read this case study

Read by 4,346 founders

Learn more about starting a lead generation business:

Where to start?

-> Lead generation business plan
-> How to finance a lead generation business?
-> How much does it cost to start a lead generation business?
-> Pros and cons of a lead generation business

Need inspiration?

-> Other lead generation business success stories
-> Marketing ideas for a lead generation business
-> Lead generation business slogans
-> Lead generation business names

Other resources

-> Lead generation business tips

How much can you make with a lead generation business?

With a lead generation business, you can make an average of $2.33M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 5 months.

How much does a lead generation business make a week?

Based on our data, average weekly revenue for a lead generation business ranges around $48.6K. As such, you could see monthly revenues of $194K.

To know if your lead generation business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your lead generation business.

How much do lead generation businesses owners make?

The income of a lead generation business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established lead generation business is about $48.6K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a lead generation business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Lead Generation Business Profit Margins

Generally speaking, a lead generation business can expect profit margin of around 93%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a lead generation business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, lead generation business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, lead generation business owners can ensure long-term sustainability and profitability for their business.

Lead generation business owner salary

The salary of a lead generation business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established lead generation business, in a prime position, might see an average weekly salary around the ballpark of $45.2K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a lead generation business may be a promising business to start - but the success of your lead generation business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable lead generation business.

Part of

Starting A Lead Generation Business: Everything You Need To Know

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