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How to Start Local Lead Generation Business

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A lead is someone who has expressed an interest in a company, product, or service in one way or another. A lead generation business is designed to provide individuals and other businesses with the contact information of potential leads.

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If you are a budding entrepreneur looking to start your own local lead generation business, here are some of the most crucial things that you need to keep in mind:

Identifying a Niche

The first thing you need to do is to identify the kind of niche that you want to specialize in. A niche is a smaller, more focused subset of a given market. It is, essentially, a small market segment.

Although you can certainly service every single business in the country, having a smaller and more targeted pool of leads means that you can offer your clients quality over quantity. Make sure that you research first to determine the niche that is not just interesting for you, but would also offer sufficient revenue.

Below are the three categories of niches that you can choose from:

  • By industry – A lot of lead generation businesses tend to choose an industry niche or a vertical market. This refers to vendors that offer goods and services in a particular trade, profession, or solution, such as car dealerships, weight loss, or pets.
  • By geographic location – Starting a local lead generation business means that you offer local businesses leads from a certain geographic area. For instance, some lead generation businesses choose to focus on a specific area, while others like Ippei Leads are able to service clients from multiple cities and locations.
  • By demographic – Demographics can be further categorized into other criteria such as age, education, religion, language, or ethnicity. For example, you can start a lead generation business that specifically targets leads who are millennials or Catholics.

Following Regulatory Requirements

Make sure that you are aware of the state and federal regulations that regulate the niche that you are interested in. For example, in some states, you need to obtain a license if you plan to operate a lead generation business targeting the real estate or mortgage industry.

Here are some of the most important areas of legal concern that you need to research more about:

  • Privacy and Piracy – In some jurisdictions, there are privacy and piracy laws in place that highlight the importance of user privacy when using the Internet. Make sure that you have a system in place for online tracking systems as well as for monitoring the use of any proprietary content you release.
  • Testimonials – In the United States, the use of testimonials is highly regulated. If you are going to publish testimonials, make sure that you have a written approval from your client. Furthermore, if it is a paid testimonial, you need to have a clear disclosure of such on the site.
  • Email compliance – In many places around the world, consumers have the right to stop receiving correspondence from businesses. Spamming is a violation that can result in hefty fines and penalties

Getting Clients

When you are just starting out, you need to create as much buzz as you can to get people interested in your services. Make sure that you have an attention-grabbing headline on your website and send out ads that are memorable.

Here are some of the most common ways for you to get clients for your local lead generation business.

  • Cold calling
  • Sending letters
  • Contacting them through their social media pages
  • E-mailing
  • Targeted image and video ads
  • Using forums for classifieds
  • Offering product trials

No matter which method you use, make sure that you let the potential client know how they can benefit from working with you. Let them know clearly what they are going to get and set up a way for them to contact you to hire you or request more details about your services.

Providing the Service

Starting a lead generation business does not require a significant investment in equipment and tools. However, it does require you to have a systematic process in place. Decide whether you want to provide the service on your own, or if you want to outsource your lead generation business.

Here are some of the top benefits of either method:

  1. DIY
  • Save on labor expenses
  • Exercise your sales skills
  • Clients will appreciate that you are hands-on with your business
  1. Outsourcing
  • Focus on other aspects of the work that is less energy-intensive
  • Access to specialists with the right skill set—people who are focused on getting you sales
  • Implement a better system for best practices and improve metrics for assessing your results


Remember that the lead generation industry is a highly competitive one. Bigger lead generation companies may have the leverage in terms of manpower, capital, and technology. However, there are still many companies out there that would rather hire smaller business for a more personalized approach.

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