How To Make Money Generating Online Leads For Local Companies

October 23, 2009 by Elizabeth
Filed under Business and Management

Welcome back!

One of the few drawbacks to affiliate marketing is the intense level of competition that exists online. Because it costs practically nothing to get started, there’s no barrier to entry. That means anyone can jump in and start promoting affiliate products. You have probably seen this in your own niches.

Today, I’m going to reveal a way you can make money online by generating leads for local businesses. Think of this strategy as affiliate marketing on a local level. Here’s the best part: this model is automatically insulated from most of your competition. Very few marketers are doing generate sales leads How To Make Money Generating Online Leads For Local Companies this. Instead, most of them are taking the path of least resistance and focusing entirely on Clickbank and CJ. With a little planning and careful execution, you can slip under the radar and generate thousands of dollars in commissions each month.

Here’s a basic blueprint for getting started…

Identify Local Businesses To Approach

You’ll find the best opportunities with companies that sell a product or service at a high price point. That usually implies that each new customer is valuable to them; each one drives a lot of profit. That means the business will be willing to pay you generously to send qualified leads their way.

Avoid retail businesses. They’re a poor choice because the average transaction is usually small. Chiropractors, plastic surgeons, auto dealerships, and cosmetic dentists are more appropriate. For example, did you know dentists charge up to $600 for teeth whitening? Most of that is profit. Imagine how much you can charge local dentists per lead.

Determine The Value Of Each New Customer

Before you can create your compensation schedule, you need to know how much each new customer is worth to the local business. Don’t be afraid to ask the business owner. You might be surprised by how well they know their numbers. For example, a cosmetic dentist should be able to tell you how much each client is worth, depending on the services that client needs. An auto dealership might be able to tell you how much each incoming phone call is worth to them (they usually know their metrics well).

Once you know the value of each new customer, ask the business owner about their conversion rate. How many teeth whitening leads does the cosmetic dentist convert into paying clients? Multiply the value of each customer by the conversion rate to identify the value of each lead.

For example, suppose the dentist makes $300 on each teeth whitening procedure. If he converts 15% of his leads, each lead is worth $45. Your compensation will be based on that figure.

Figure Out How To Track Leads

There are a few methods you can use to track the leads you generate for local businesses. The easiest way is to collect the lead information yourself and then forward it on to the business owner. A small content site that supports a landing page with a multi-field form works perfectly. When visitors complete the form and submit it, their information can be emailed directly to you and the business owner.

You’ll find that some businesses have a staff of salespeople whose sole job is to convert incoming calls (auto dealerships do this a lot). In that case, establish a unique telephone number that routes directly to the business. Drive traffic to a landing page that qualifies leads and encourages them to call the number. Get paid for each call and let the salespeople do what they do best.

Drive Traffic

While you can definitely use the search engine optimization strategies I’ve explained in past posts, drive traffic with PPC and social networking sites. You can generate traffic quickly with PPC, and as long as you’re converting visitors into leads, your backend profit will cover the expense. Plus, you can refine your targeting on PPC in a way that is more difficult with SEO.

Social networking sites are great because they let you drill down into specific demographics. That’s valuable. For example, if you’re generating leads for an auto dealership trying to move a particular muscle car, you can target males in a certain age group.

Focus Your Efforts

If you have never worked in the local marketing space before, start with one type of business and one product or service. Focus your efforts. For dentists, generate leads for a specific service. For auto dealerships, focus on a specific model. It’s too easy to spread yourself thin and become distracted and less effective in any given category. Once you become more comfortable with the process, and have established systems that automatically drive the traffic, move into other niches.

Affiliate marketing is growing more crowded each day. However, with the right marketing strategies, you can generate leads for local businesses and enjoy a territory that is largely your own.

P.S. You should review my show with Rachel rofe on how she makes money with local companies in her area. Good Stuff!

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