Tapping into Billion Dollar Markets With This Small Business Model

Hey Cashflowers,

This week we are diving back into business ideas. Luckily this week we are going to quickly dive into a billion-dollar market-tapping idea:

Lead Generation

How can you tap into billion-dollar markets with this idea? Read the breakdown to find out the pros and cons!

Let’s dive in!

Overview

Lead generation is exactly what it sounds like, you’ll be finding leads but this time not for your own company.

You’ll be finding leads for other people’s companies, and exchanging those leads (extremely valuable) for money in return, hence how you’re going to cashflow this business model.

How are you going to do this?

You can do SEO, create websites for companies that don’t have them, run online ads, or even directly cold call.

Lead generation is something every business in the world needs.

Remember:

A business without customers doesn’t make money.

Road Blocks

Getting into lead generation isn’t hard on anything but time.

Building a relationship with large companies might be difficult in the beginning, and you may have to learn to sell, but you won’t be the one actually providing any service or hiring many people.

Virtually no startup capital is needed to agree with a company on the phone for a set price per lead, nor will you be spending any of your own money on anything you do for this company, as it’s all their own work product.

Tap the Market

Here’s the key:

If you’re finding leads for a business that averages $20 per customer's total lifetime value, you’ll be making as little as 50 cents per lead.

Sounds kind of ridiculous.

Billion-dollar markets are worth billions because people spend a lot of money.

Think of things like construction, retirement homes, internet providers, etc…

All of these different business models have a really really high lifetime value for each customer.

If a customer to a construction company averages $500,000 in total spend, what is one single lead going to be worth to that company?

You could get paid upwards of $1,000 for a lead like that.

So…

The way to tap a billion-dollar market is to find a huge market where a lead is worth a lot and find leads for said company within that market.

Easier said than done, but that’s the breakdown, and it’s nearly fail-proof.

Pros and Cons

There are pros and cons to this business model, as with any other, so let’s get into them.

Pros:

• You’re not actually doing the work. You’re finding leads and passing them on, so your customer journey is short and easy to deal with.

• No startup capital is needed, just a good relationship with a company that’ll get you in the door to help each other out.

• You have the ability to choose who you work for, and what companies are most valuable to work with.

Cons:

• You’ll likely have no initial connections

• Learning to generate leads is a skill you’ll have to learn, but luckily it isn’t difficult

That’s all this week!

-Cheers!

Cashflow Chronicles

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