Transcription
In this video, I'm going to explain how to make 500K per month with a lead generation business. In this video, I'm going to be giving you guys a raw, unedited, step-by-step guide on exactly how I went from zero 500K per month, and now I'm doing 700K per month with a lead generation business. So, let's dive in.
Now, why am I the one to basically teach you this and explain this to you? Well, when I started in lead generation about 5 years ago, I barely made any money for the first 3 years. I made just about every single mistake possible, which I'll get into more in a minute. And I actually ended up in over six figures of credit card debt just learning what doesn't work. So I've made a lot of the mistakes, not every mistake, but a lot of the massive mistakes that you can make running a lead genen business. And now we've scaled to a point where we're consistently doing $700,000 per month. I've also been mentored by people who have sold their business for $70 million and $60 million. I have two of those mentors and we are now generating leads so good where one of our clients paid us $3,000 for a package of leads and made back $210,000 in commission. So you can imagine when somebody is paying you that much and making you that much, you can charge a lot more for what you're selling, right? Let's get into it.
So, what I'm going to be covering is how to pick a vertical, the three tiers of lead buyers, how to differentiate your leads, what something I call the payperx spectrum, how to acquire lead buyers so you can sell your leads consistently at a profit, the different funnel types that you can use to generate high intent, high-quality leads, how to test creatives and generate the leads online. Um, pricing and monetization so you can be as profitable as possible, as well as the number one metric that actually matters with lead generation. Most people don't talk about this and it is the reason that they can't scale past 50 100k per month in lead genen as well as the move which I learned from some of my mentors that have exited that turns a normal lead generation business into something that can sell for 8 n or in some cases even 10 figures. So let's dive right on in.
Now the most expensive lesson of my career and what ultimately I believe led me to end up six figures in credit card debt was selling to the wrong people. So, when I first got started in lead generation, I'm going to kind of switch to story mode here and then we'll go back to the slides. Uh, basically the way that I got into it is I used to sell insurance doortodoor. And so, I would drive all across the state of North Carolina knocking on people's doors, selling them something called final expense insurance. And basically, I was working for this company that would generate these leads and they would send out these little mailers to people's doors and try to get them to send it back in. Basically, the whole the whole reason they would send it in is it says, "Send this mailer back in for a free Walmart gift card." Right? That was the whole premise of the lead. So, we get this stack of mailers back from all these people in like section 8 and trailer parks and different things requesting free Walmart gift cards and it happened to mention something about buying insurance. So, we'd go out, knock on all these doors, we're working like 80 hours a week. One week we would be in like the most far remote mountains in North Carolina where you couldn't even get a sell signal and it would be like driving up and down like a crazy pitch in a sedan just to get to somebody's door. And then the next week you would be at the beach where like there's sand all over people's front porch. Like we were we were driving the entire state of North Carolina selling this insurance. We were working like 80 hours a week and I did this for about 8 months. And at the end of it I had only made around $26,000. And the reason that I barely made any money is because I was selling to the brokeest people in America. The type of people that send a lead back requesting a free Walmart gift card are not the type of people that you're going to build a stable business off of. And it took me a long time to realize that. And that's obviously a very extreme example. However, a lot of people will create a lead generation business selling to painters or um massage therapists or just some random niche like that or even someone who I was coaching recently who built a whole lead business off of selling to wedding photographers. Like these are people that are not making serious cash on a consistent basis and it's incredibly difficult to base your business off of that. So, I'm going to talk more about that in just a moment.
Now, there's four filters that every single vertical needs to pass. So, whenever you're deciding what vertical or another term for this would just be niche, whatever niche you're going to go into for your lead business, you really want it to meet four different criteria. And the first one is that the customer LTV, so basically with lead generation, you're generating customers for your customers. So, that in customer, the LTV should be above $5,000. Ideally, $5,000 in profit. So, lifetime gross profit, not just lifetime value. So, you want your clients to be able to make $5,000 from their clients. Now, the reason why is for you to have enough margin to be able to generate leads at a ridiculous amount of scale. You want your clients to be able to pay you a higher dollar amount per lead. And in order for them to justify that, the LTV of their client needs to be above $5,000. Again, ideally, lifetime gross profit. The next thing you want to look for is industries that are already spending heavily on marketing. So, if you can find an industry uh that spends a bunch of money on TV ads, they spend money on billboard ads, they spend money on direct mail, they're already spending money on Facebook, Google, pay-per-click, all these different uh channels. If you can go into an industry like that, like for example, legal, uh wealth management, remodeling, contractors, things like that. They're already spending as an industry billions of dollars on marketing. them allocating a portion of that towards you is not nearly as difficult of a sale as trying to convince someone that barely spends any money on marketing to consistently pay you for leads. Find industries that are already spending very heavily on marketing. The third thing is you want to find stable businesses that stick around long term. You don't want to find people that are in business today and out of business tomorrow. You want to find ideally, you know, industries where there's businesses that have been around for decades or even hundreds of years. And I'll give you guys some examples of that in just a moment. And then the last thing is you want to find businesses that have a replicatable system. So the same way that I would generate leads for company A would be the exact same way I would generate leads for company B within that niche.
So I'll give you some examples, a few niches here that pass all of these. So perfect examples, we have law firms with certain uh there's different types within law. So you have like personal injury, which is basically like if someone gets in a car accident or gets hurt at work, they can basically sue the insurance company and win a big amount and then the lawyers will take a percentage of that. So that's a very very high LTV industry, especially with personal injury. I mean, there's lawyers that can make a few million dollars on one case. So that would be a perfect example of if they're paying you per lead or per appointment or per whatever, they have so much margin to play with, they're going to be willing to pay more. So law firms, there's also estate attorneys, family law, um, criminal defense. There's a ton of different industries within just law. The law is a great one to look at. HVAC, right? So, if somebody is purchasing a a brand new HVAC system and then they buy, you know, maybe a maintenance plan on top of that, that's something where the LTV could be well over $5,000. Roofers as well, very high LTV, very high profit from somebody selling a roof. If you bring them one extra customer and they do the roofs and then maybe they also install gutters, we're talking about tens of thousands of dollars. It's very, very reasonable for them to pay you a few grand to acquire a customer. Remodelers. So this could be home remodelers, kitchen remodelers, bathroom remodelers, or just someone that does all of it. These are usually very very large jobs. These people have an extremely low chance of being replaced by AI anytime in the future. Uh wealth management is another one. This is where I focus on u wealth management or financial services at large. The nice thing about this is uh there's different products they can sell that have a large upfront amount that they get paid. So there's a large commission and then they get a long tail uh in terms of recurring revenue with wealth management. Similar thing with tax strategy. There's tax tax businesses that have been around for decades and decades and decades and decades. They also charge pretty high ticket relative to the clients that you're bringing them. And they can also sell products that have high commissions. So, this is another great industry. Same thing with mortgages as well as business loans. So, these would be some industries that I would be looking at if I was planning on starting a lead generation business. And to be honest, if I wasn't already in wealth management, the one that I would personally be looking at is probably business loans because the commission that you can earn if you help somebody get a loan for, you know, a few million bucks, you can get like 15%. Again, it depends on the company you're with, but you can get 15% of whatever you help them get as a loan. So, if you help them get a million dollars, you're getting $150,000 as a commission. So, very, very, very uh high ticket stuff there.
There's basically three types of lead buyers. And whenever you're deciding who to go after, you want to figure out the the tier of lead buyer that you're going towards. So when I first got started, I was only going after small buyers. And honestly, 3 to 5K a month might have even been high compared to the people that I was going after. So when I first got into lead genen, again, I started as one of those insurance agents who was selling stuff doortodoor. And I realized that there had to be a better way to generate leads than this direct mailer thing. So what I did is I started helping individual insurance agents generate their own leads, right? And we would charge, we ended up doing a pay-perle model with that. We were charging anywhere from 35 to 50 bucks a lead. The clients would maybe pay us $1,000 a month. A big client would be $2,000 a month. They were very small buyers. They would complain about every single lead. They would charge back. They would request refunds. And like I was literally jumping on the call with them to close them on $1,000 of leads, which is just the dumbest thing you could possibly do. So small buyers are incredibly frustrating. You need a ton of them just in order to do 100k a month. And uh they're very, very difficult to manage. So I don't recommend going after small tier buyers. The good thing with small tier is your profit margin can be much higher because they're not buying a ton of volume. So there are pros and cons to each, but in my opinion, with small buyers, the cons far outweigh the pros.
The next one is midsize buyers. So, this is usually going to be like small businesses and these people will spend anywhere from 5 to 25k per month. Uh, sometimes even more. These are usually going to be 3 to $30 million a year companies. Um, they close within 1 to two weeks and they think more from a business owner mindset. So, this is what I would say is like your a really great foundation for a lead genen business. This is what we primarily focus on. And the reason why is they'll purchase enough volume and they won't at the level of small tier buyers. But the the third tier, which is enterprise, they want such volume discounts and there's so many hoops that you have to jump through that I think it's it's not very beginner friendly and it's good to add on later on, but I would rather have the base of my lead genen business be based off of mid-tier buyers that are spending anywhere from 5 to 25k a month, which is still a very good amount. Some of our mid-tier buyers spend upwards of 40k a month with us at the moment. To get to 100K per month, you need four to five clients. So, you do the math. to get to 500K per month. Realistically, you need 25 clients, which is very, very manageable. I'll talk about how to acquire each of these in just a moment.
But enterprise buyers, which is the third tier, this is going to be I I've had some experience with these these buyers. The issue is like when I say there's hoops to jump through, they have all of this compliance stuff that they're very, very worried about in terms of um TCPA and different things. And they want to they usually want you to customize the way that you're generating leads to meet their demand. Whereas with mid-tier buyers, you can say, "Hey, this is the way that we're generating the leads." And then you kind of have them fit within your model, which makes it much much easier to scale. Let's continue.
So those are the three tiers in terms of creating your offer. So we've gone over the different industries, different types of lead buyers. Now, we need to figure out what offer we're actually going to be selling them because just selling them leads like names and numbers is very much so commoditized, right? And we want to basically have our offer with with lead generation. It's just like anything. It's really just the offer is the is the ultimate thing that matter. How can you create an offer that puts you in a category of one? So you're no longer commoditized and you can price accordingly. You have what's called pricing power. When you're a commodity, if it's just names and numbers, anybody can can do that. And so you're competing against everybody that can run ads on Facebook, which spoiler alert is a lot of freaking people, right? So we don't want to be a commodity. We want to basically differentiate our leads in some way.
So this kind of brings me to talking about what I call the paper X spectrum. Basically, I'll go back to the other slide in just a moment, but I want to explain this first. So the pay-per X spectrum is basically what you can actually deliver to your customers. So over here on the far left side, we have pay-per-click. Now when I say lowrisk, I mean low risk to you as the business owner. When I say high risk, I mean high risk to you as the business owner. Low value is value to your customer. High value is high value to your customer. For example, there are businesses that sell pay-per-click. So, literally, you just pay them a certain amount amount of money and they charge you per click that they bring you to your website. Now, that's very low risk. It's very easy to generate clicks, but it's also very low value. You're probably not going to be able to sell clicks to a business unless you're Google. Pay per lead is very, very simple. You're basically just charging them for names and numbers. So, hey, I'm going to get you somebody that fills out this form. You're going to pay me $20 per person I get you. I'm going to try to generate them for 15 and then I make a $5 spread on the difference. That is very, very commoditized. Next up, we have paper qualified leads. So, instead of me just getting you a bunch of names and numbers that may or may not be qualified, I'm making sure that these people can actually afford your service or qualify for your service, you can maybe have a uh a team that calls them and qualifies the lead. Or you could just be qualifying them through conditional logic through whatever form that you run. Now, pay per appointment. This is where it starts to get more valuable. We're booking appointments directly onto their calendar and they're paying us per person we put on their calendar. Now, it's more valuable than payer lead, but the biggest issue you're going to run into here is people hate paying for notion. So, if you're selling them appointments, but 50% of those appointments don't even show up, they're not going to be very happy with that. The next level is selling them qualified appointments or showed qualified appointment, right? If you're literally giving somebody showed appointments and all they have to do is close, like they're paying you for a person to show up on their calendar. Uh the equivalent of this for other industries would be pay per call. So pay per show or pay per call are higher risk to you as the business owner. They take more operations but they're much higher value to your client. So in terms of the spectrum here again the farther the right you go the more valuable it is to your customers and the more you can charge. Right? Pay per client. This is something that some people do in certain industries like for example legal. A lot of people will do uh it's called pay per signed retainer in legal. So basically, if someone gets in a car accident, they'll have a team of reps that call them, get them to agree to sign up with that law firm, and then they sell that signed retainer, usually for a few thousand. So paper client, paper show, paper qualified appointment, paper appointment, paper qualified lead. Again, the further we go to the right, the better our offer is, the more value it ultimately has.
What this comes down to is if we want to make more money, we want to eat the complexity for our customers. I would not advise you to just sell generic leads. I would advise you at the very very least to sell qualified leads and better and better you are sell qualified appointments or even showed appointments which is ultimately what we do which has allowed us to scale so fast. So what Amazon did this is why Amazon is so successful is they follow a philosophy called eating the complexity for their customers. So essentially what that means is if you go on Amazon literally all you have to do I mean I ordered something earlier this morning. I wanted to buy some highlighters so I could take notes in a book. I press a button on Amazon and later today I'm going to have highlighters that show up at my apartment. I'm going to go down and get them and then I can use the highlighters in the book. What's actually going on behind the scenes? Well, Amazon is getting highlighters. They're storing them in their warehouse. They're distributing them across warehouses across the country so that me in Scottsdale, Arizona can get a highlighter in a day and somebody that's in Boston, Massachusetts could get that same highlighter in in a day as well. Handling the logistics of delivering that. Like there's so much that goes on behind the scenes, the routing, the customer support, doing returns, stocking all the inventory, but all that I see on the front end is just one click buy, the highlighters show up. That is the concept of eating the complexity for your customers. So the more that you can do that for them on the lead genen side, hey, all you do is you pay me a few thousand and then I bring you a client that's paying and ready to go. That is like as good of an offer as it possibly gets. And it requires you to be good at operations, which I'll talk about more on this channel, and I can explain what we do and how we're able to deliver showed qualified appointments. Um, but that ultimately is where you really get extreme pricing power.
Once you figure out your offer, now we need to actually go and acquire lead buyers. I do not want to spend money that I do not have. So, I am not going to spend money on trying to generate leads until I have people that I know are willing to buy leads from me. The primary method that we get clients for our offer uh for our 500k per month lead offer is we literally just run basic ads that say what the offer is. So it'll say insert niche only pay per showed appointment. Click the link below to apply or to get this offer. It's super simple. It's super direct. But again, if we go back, the better you make the offer, the easier it is to sell. Like if I'm selling pay per client, my ad could literally be, you know, me doing anything, doing a upside down handstand naked with a sticky note in my mouth that says pay per client and people would click on, right? Like it doesn't matter what the ad is. If the offer is so good, you just state the offer in the ad. And that is where I would recommend for you to go to. So pay appointment, paper qualified lead, pay client, or pay show is what I would focus on as opposed to payer lead. So, you do a simple ad, you get them to book a call, and then you have a sales team or yourself in the beginning. You just jump on the call and close the deal. Once you start to get proof, then you can start to get into things like cold email, referrals, as well as networking and partnership.
In an ideal situation, what you want is you want to have a zero or negative cost per acquisition. So, the way that you can do that, if you're doing cold email, the cost of sending a cold email, especially if you have a good offer and you have proof that it works, is negligible. I mean, you could blast every single person in your niche for under $10,000 and they would all know your offer because you'd be in their inbox. So, cold email is extremely profitable once you kind of like it's going to be much easier once you're able to prove that you can deliver it. Same thing with referrals cuz once you have clients that are happy, it's easy to get referrals and same thing with networking and partnerships. Once you can show somebody that you can get qualified clients for their audience, they're going to be very willing to set up a referral partnership with you. Uh just last month, one one individual, one person sent us $50,000 of business, which was close to like 8% of our total cash, one person. And so we're working on scaling that now. But we're able to do that because we've shown that we have a product and an offer that works. All right. So in the beginning, just focus on ads. It's very simple, easy to do. And then once you have proof, you can start adding on some of these other things to get your cost down lower.
How do you actually generate these leads? Okay, so we've gotten our first few clients, we figured out our vertical. How are we going to actually get them their appointment or their leads or or whatever we're doing, right? Well, there's two main types of funnels that I personally use in my own business and that I recommend for you to use as well. The quizunnel and the VSSL funnel. So, essentially the way that these work is, let me actually just draw this out for you. All right. So, first we're going to look at the quizunnel. So, the quizunnel basically works like this. You have an ad and then it's going to go to a questionnaire, right? So, you'll have question one. Um, usually with question one, I'll try to just have it be like there's two options. So, it'll be like option A or option B. The lower cognitive load in the beginning of the of the quiz, the better, right? So, just simp two simple questions. And then I'll have question two. I try to keep this one like relatively low cognitive load as well. This might be question A, question B. Boom. Boom. Then question three. Now, I can start to ask them more uh serious questions. So, the way that I decide what to ask is it's really based off of what the customers like what my clients will want in terms of having qualified leads. So, let's say um if I'm doing uh let's say I was doing roofing, right? So, question one might be like, are you a homeowner? Question two might be, do you need a new roof? Question three might be, what's the value of your home? So, it's like it gets a little more invasive the further along you go. And then question four might be like contact info. And then on the thank you page, we'll just go up here for this. On the thank you page, I could show them uh and I could I could vibe code this entire quiz with AI. It'd be very easy to do. On the thank you page, I could show them something like um what the estimated cost for a new roof in their area would be. And then I could say, "Hey, book a call on this calendar to lock in this offer." So, my ad could basically be see the cost of a roof in your area. I ask them a couple questions on a quiz. I get their contact info and then on the thank you page, I show them like a brief estimate and then I give them the calendar to book in. And then I would basically be people get be acquiring customers that would be booking in appointments and I could then sell those appointments. The people that don't book the appointments, I could then sell those as leads. So that's essentially in a very basic form the structure of a quizunnel. I'm going to post another video later in next week after this video is posted and we'll be breaking down some different quiz funnels of billiondoll lead gen companies that are doing this.
Now the VSSL funnel, this is very simple. You guys have probably seen this. Literally add to a video training and then we get their contact info. We may ask them a couple questions and then we give them straight to the calendar. So, the nice thing about this is you can do more education. So, for verticals or niches that need more education, like for example, wealth management or tax, I'm probably going to do like a video VSSL to educate them more. And these also tend to have a higher show rate uh in terms of actually getting people to show up to the call. So, those are the main two funnels that I will use.
One other thing that I highly highly recommend that you do is use what's called OTP or a one-time passcode. So on the contact page when someone puts in their info, you're going to send them a code to verify their number. Now what this does is it makes sure that you don't get any bad numbers coming into your funnel. So that right in itself is a great way to differentiate your leads from other people is if you do that OTP code, you're going to have way better leads than all the other competition. Also, it then trains Facebook's al algorithm to find you better leads because if every person that you're sending back to Facebook and counting as a lead has verified their phone number, well, that means they have to be higher intent in order just to go through with that step.
Next, now that we kind of understand the funnels that we're going to be running, how do we actually test creatives and then use like create the ads that generate the leads for our clients? So, what I do is because we have setters that call all of our leads, I'll get the call recordings of the setters speaking to our actual customers and I'll download all of those call transcripts and then I upload them into AI. I use Manis. You could use Claude or Manis, whatever you want to do, and then I tell it to go through and find unique ad angles based off of what the customers are saying on the phone. So, that's how I do it. You can also have it go and research things online. uh like you know I'll have it go and research current events, things that are going on and then turn those into ads. So what I'll basically do is I'll I'll create all these different angles and create all these different scripts and then I'll send those scripts off to video editors who create ads with AI avatar. So this is very cheap. It's very easy to do. I'm able to get these videos for like 25 to 50 bucks um completely made. I don't have to pay any UGC. That's with the AI avatar and the editing all done. So I'll get like 30 videos. I'll launch them on Facebook and then based off of whatever works, I'll create more like that and then do that again in the second batch. And so we consistently test, you know, over a hundred new ads every single week using this method and we're able to consistently find new winners that we can then scale up, right? So that's a highle overview of the creative strategy that we use. Uh it's really like test a ton of ads. You have no idea what's actually going to work. You figure out what's starting to show signs of life and then you double down on those angles.
Once you're generating leads consistently, you have creatives that are coming in. Now, you need to understand how the business model and how the money of this business actually works. I've also had a few people ask this question on comments on previous videos. It's like, what should your cost of goods be relative to what you're selling the lead for? And I've heard people say that your cost of goods sold should be 20%. So, let's say you're selling a lead for $50 a pop. Other people will say you need to be generating that lead at $10 to make any money. While in an ideal world that would be amazing, the reality is you're probably not going to be able to gen you're not going to be able to generate leads at $10 and sell them at $50. Especially not at scale and especially not with bigger buyers cuz bigger buyers are going to want volume discount. Like they might pay you 200 grand a month, but you might only make 10 bucks a lead. The key is you have to you have to generate revenue through other sources. The way that pay per lead works is there's really two main metrics that actually matter. You have your dollar per lead and then you have your cost per lead. So this is very similar to LTV to cost to acquire a customer. I just call it dollar per lead and cost per lead because it's very simple. If there's one number that actually matters for lead generation, it is this. Your dollar per lead versus your cost per lead. Doesn't matter if you generate the lead for $10 and sell it for $50. This is what matters.
Essentially, there's multiple ways that you can monetize a lead outside of just selling it one time. That is literally the entire secret of lead generation. Big lead lead lead vendors and lead generators would make no money if they only monetize the lead one way or they would make significantly less or barely any. So on this graph you can kind of see what this actually plays out to. Let's say you're generating the lead just as an example for $50, but then you're selling it for 55. Okay. Well, that's just the first time that you sold it. You made $5 profit. Well, let's say you resell that lead multiple times over and over again. Maybe you sell the lead 10 times. The first time you sell it for 55, the next time you sell it for 40, then 30, then 20, and then eventually it goes into an age lead pile and people can buy it for $10. Well, you only paid to acquire that lead one time, but now every time that you sell it, all of that extra money is just pure profit, right?
The next thing that you can do is you can then create affiliate partnership. So, let's say I'm doing um business loan leads. Well, if I'm getting a ton of business owners coming into my funnel looking for capital to raise, well, think about it. What are other things that business owners might need? Well, they might need bookkeeping and accounting. They might need I mean, maybe they need to file an LLC. Maybe they need a business credit card. Maybe they need a business bank account. Maybe they need help with tax savings. Maybe they need wealth management. Like the list just goes on and on and on and on and on and on and on and on. So, I could set up different affiliate partnerships. Maybe they need insurance, for example, business insurance. I can set up these different affiliate partnerships and then I can email those leads saying, "Hey, are you interested in this credit card? Are you interested in bookkeeping, accounting? Are you interested in wealth management? Are you interested in this?" And every single time that they click on something and then go to some some other affiliate partner, I can earn a percentage as an affiliate, right? So, that's another way uh that also kind of ties into selling into different verticals. So, if they come in for business loans and then I uh remarket them and get them to opt in for something related to business credit cards, now I could sell that as a separate lead.
And another way that you can do this is with tiered pricing models. So I'll use another industry as an example. Let's say I have leads that are coming in uh and I'm selling them to to roofers, right? Well, the the value of a lead is dependent on, you know, maybe how big the roof is. Like doing a small roof versus a big roof would be different amount of money for the roofer. So why not charge a different amount of money for the lead? A lot of people would just charge a flat base per lead and they're missing out on a lot of the incremental value. So instead of just saying it's going to be $200 for every lead, well maybe it's $100 for the lowest value leads, $200 for the medium value leads, $400 for the higher value leads, $500 for the highest value lead. Well, if my cost per lead on all of those is 60 bucks, every higher tier is way more profit that is allowing me to scale this business. So you guys can see how your cost of goods sold relative to what you sell the lead for one time is not really important. What's important is how much dollars you can get per lead that you're generating relative to your cost. And if you're able to have more LTV per lead over a long period of time, that is ultimately where this business is made extremely profitable.
How do you actually set this up and what does the scaling road map really look like for this? When you're first getting started, you want to just focus on paid market. So, this is Meta, Google, YouTube, Tik Tok. Uh some people are even doing apploving now. I'm going to test that a little bit later, but you really want to start off just doing paid ads. But the cool thing about paid ads is you get all of this attention, all this traffic coming in. So if I'm generating leads for again roofers, well, I have all these homeowners interested in roofs. Well, I could just, you know, have a couple Facebook pages and generate all these leads and then sell them. But if I'm already getting all this attention, why don't I keep the attention and then turn it into a brand which is then actually exitable and sellable long term? Like perfect examples of companies that did this, Nerd Wallet, Credit Karma, I think Credit Karma's uh revenue is over a billion dollars a year. Nerd Wallets is like 600 million. These are massive, massive companies. And what they did is they turned the traffic that they were getting and they turned it into an organic presence. They have websites and apps where people will go to learn about their credit. Well, if I'm doing something for roofers, what if I made a whole site, a whole brand around helping homeowners save money, right? I could have them come in for roofs. I got have all this educational content on how to shop for a roof, how to pick the right roofer, all these things. So, they're getting a lot of value from me. Well, then they might also need HVAC. So, I could make all this content around HVAC. Now, when they need to buy a new HVAC system, guess who they're going to come through? Me, and I'm going to sell the lead again. Do the same thing for plumbing. Do the same thing for yard maintenance. The same thing for security systems. You can see how it comes from just running ads to a page and then selling the lead to now you're building a whole brand, an organic presence. So start with the paid ads, but then parlay that into building an organic brand that has real enterprise value that you could sell long term.
And then where this gets really crazy is you go from just being a lead vendor that's selling a bunch of leads. And one of my mentors, I told you guys, um, one sold it for 60 million, another sold it for 70 million just as lead vendors. But if you want to start making stupid money, you instead of just selling the leads as leads, you start taking the leads internally. So I'll give you a perfect example. Uh, one of my mentors, his name is Josh Snow and uh, he's one of the guys. He sold his business for $70 million. They were doing pay per call, which is very similar to pay per appointment, but they're just transferring inbound calls. And they were doing it for Medicare insurance. So, basically seniors in America when they turn 65, they get a a health insurance called Medicare. He was basically selling calls for people to be to purchase that. He ended up selling that business for $70 million. But on one of our coaching calls a few months ago, he told me he's like, "Tim, you know, one of my biggest mistakes and one of my biggest regrets is selling that business instead of just building my own Medicare agency and taking half of my calls internally." And he said, "Had I done that instead of just selling the leads, I would be a billionaire right now instead of 100 millionaire." I mean, 100 millionaire is not a bad outcome. from one simple switch from just becoming a lead vendor to becoming a true owner of one of these largecale businesses and becoming a billionaire. I mean, that's that is a massive lift on your leverage simply by taking some of your own leads internally. If you think about it, you know, the the most valuable skill is being able to acquire customers, all of these massive companies. I mean, if a company is willing to acquire your business for $70 million, they're probably expecting to make 10x on that. And so if you start figuring out a niche, you figure out legal, you figure out wealth management, you figure out insurance, you figure out home services, and you're selling all those leads, you turn it into a brand, and then you start taking some of those internally, maybe you start buying up home service companies. Now you're talking about owning a real empire that you know could outlast you. And so that's where I really believe that lead generation gives you this ability unlike any other business. You can't do this with running a marketing agency. You can't really do this with e-commerce. lead genen really has this full path that just prints massive amounts of profit.
So to recap, pick a vertical with 5K plus LTV and heavy marketing spend. Sell to midsize buyers first and then start to build towards enterprise. Differentiate your leads. Don't be a commodity. So either sell per appointment, add in that OTP, uh do paper show, do qualified lead, don't just sell uh form fills your buyers with simple ads that just state your offer and then just test a ton of ads with AI at volume. So monetize the higher value leads. You can do affiliates. You can sell the leads multiple times. Drive down your cost per lead and drive up your dollar per lead with organic. And then start taking some of the leads internally and scale to literally limitless amount. Ladies and gentlemen, that is how you scale a lead generation brand to 500k per month. Um I'm documenting my own journey of scaling this business to a million dollars a month and then ultimately turning that into a billion-dollar empire. So if you guys want to be along for that journey, I'm going to be sharing all of the lessons that I learned along the way. So, hit the subscribe button down below and hit me up on Instagram if you guys have any questions. I'll see you in the next one.