Gearing up to start your lead generation business or agency? Finding a scalable niche should be the top priority in 2024. High competition and market saturation can lead to ultimate failure. On this basis, we gonna explore industries that need lead generation.
What to do if you are inexperienced? Focusing on more than one lead generation industry can turn into a disaster and will dilute your energy. You can add more service industries after some time and experience.
Most businesses outsource their lead generation work due to the inefficiency of in-house teams and the high cost of maintaining them.
To be honest, every business needs lead generation to grow. Profitability is another factor that should be considered during the research process.
Take Away:
“Lead generation services is a competitive market and choosing the right niche is a must for success. The industry you pick for your lead gen agency should have low or medium competition. Consider all the factors like cost per lead, market trends, revenue, and risks before finalizing the choice. Local lead generation industries are good to go for beginners.”
What Is Lead Generation Niche?
Leads are potential customers who must be passed through a complete sales and marketing process. The lead generation niche is a specific industry that service providers offer.
For example, SaaS, financial services, and home improvement. Most lead generation agencies start with one or two service categories and expand them later.
How To Choose A Profitable Lead Generation Niche?
A profitable lead generation niche carries a competitive return on investment. A business industry that has long-term worth can be a good service to offer.
It’s challenging for any business or agency to select which niche they should go with. Here are some factors that should be involved in their final decision.
1. Market Demand
You can’t choose a lead generation industry based on assumptions and false claims made by some YouTube or LinkedIn influencers. Do people even need lead gen services in that industry?
Analyze the market demand using different surveys, statistics, and manual research. Industries with higher demands bring more competition because everyone wants to scale their lead gen services agency.
Also Read: 55+ Lead Generation Statistics And Trends
2. Total Addressable Market (TAM)
Market size also known as the TAM is another important thing to consider during the research process. How many businesses are out there in that industry? Every lead generation agency owner wants to grow, so it is better to choose a scalable market.
Go through the recent industry reports and studies from reliable sources like Statista, Gartner IBISWorld, etc. Take input from industry experts and cross-check your estimates before moving forward.
Use different online tools, databases, and business directories. Sources like LinkedIn, CrunchBase, Product Hunt, and Google Trends can be helpful.
3. Customer Lifetime Value Analysis (CLV)
CLV analysis is important for revenue estimation. There are different metrics involved in deciding the Customer Lifetime Value, like:
- Average Revenue Per User (ARPU)
- Customer Retention Rate (CRR)
- Customer Acquisition Cost (CAC)
Collect and analyze the historical data for understanding including the industry benchmarks. Industries with higher CLV are willing to pay more for lead generation. Check this metric for all the shortlisted niches and then make your decision.
Formula 1:
CLV=ARPU x Gross Margin / 1- CRR
Formula 2:
CLV= ARPU x Customer Life Span
CLV Calculation Example
Suppose your average revenue per user (ARPU) is $500, the gross margin is 70% and the customer retention rate (CRR) is 80%.
CLV= 500×0.70/1-0.80 = 350/0.20 = $1750
A well-calibrated approach performs well in the long run. These are just estimated metrics and you should be prepared for any scenario.
Also Read: Lead Generation Landing Pages – 8 Examples And Templates
4. Evaluate Cost Per Lead
Evaluate both direct and indirect costs involved in the lead generation process. Here is the cost breakdown for further understanding.
Direct Costs: It includes ad spending, content creation expenses, and other lead acquisition costs. Team salaries and promotional expenditures are also part of direct costs. Tech equipment, software, and tools are necessary add-ons that increase the per-lead cost.
Indirect Costs: These are general expenses utilized in different business operations. Office rent, utilities, business promotion, and administration-related tasks. Indirect cost is spread across all the customers and must be included in the overall business plan.
5. Revenue Streams
There are generally two types of revenue streams that lead generation agencies prioritize. One is recurring payments while the other is one-time revenue. The majority of agencies accept a single subscription model while some accept both types of payment for their services.
Revenue is dependent on cost per acquisition(CPA) and cost per lead (CPL). If this goes high the profit automatically shrinks and it can be fatal for new agencies.
5. Risks Involved
Market saturation and changing dynamics are some serious concerns for B2B marketers. Global economic constraints and privacy regulations also impact lead-generation efforts.
Sometimes agencies commit unrealistic results just to retain their clients. It can be challenging to meet their expectations in tough conditions. Maintaining talent and service quality is another formidable task for scaling a lead gen agency.
6. Experience Required
Starting a SaaS lead generation agency without any experience can lead to absolute failure. Choose a niche that suits your background and expertise.
If you are at ground zero, do some research and get practical knowledge about that industry. Get a consultation from industry experts and attend webinars for exposure.
7. Future Projections
The future of lead generation leans on personalization and the use of systems in the whole process. Integration of AI and ML learning won’t be an option but a necessity.
Advanced data analysis and multichannel marketing strategies will drive better results. Choose a lead generation industry that is inclined towards all these aspects.
List Of Industries That Need Lead Generation In 2024
There are dozens of options out there to start your lead-gen business. But we will give an overview of popular industries that need lead generation.
Best B2B Lead Generation Niches For Agencies
B2B lead generation is getting tough with time and market saturation. However, many industries can be promising for starting your agency. Here are 10 profitable B2B lead generation niches for agencies.
Healthcare And Medical
Global healthcare infrastructure is going through a constant transition with more sophisticated devices, health tech, and services. You can offer lead generation services to supply firms, pharmaceutical companies, and medical professionals.
This industry is booming with modern-day technology and innovations. You can charge $50 to $500 per lead, depending on the product or service your client offers. The monthly service packages or subscriptions can range between $3000 to $15,000.
Lead gen services that can be offered include:
- Targeted outreach to healthcare professionals
- Webinars and virtual events
- Compliance-focused lead generation
- Specialized content marketing
Software As A Service(SaaS)
The SaaS industry has shown tremendous growth in recent times. However, the competition is high due to higher business stakes. More businesses are adopting SaaS to improve their workflow.
SaaS is an evergreen lead generation niche that has futuristic implications. You can charge anything between $50 to $200 per lead for your work. The monthly service pricing can be set between $4000 and $15,000 depending upon its scope.
The marketing strategies that can work include:
- Targeted PPC campaigns
- Email marketing and automation
- SaaS content marketing
- Trial optimization and lead conversions
Real Estate And Property Management
Real estate is a crucial component of a diverse investment portfolio. You can help contractors in connecting with potential investors. Overall competition in this niche is high, however, you can focus a geo-specific real estate lead gen services.
This industry has a wide range of business prospects that require continuous lead generation. The average cost per lead can be kept between $50 to $300. The monthly lead generation packages can vary from $3000 to $12,000.
The services demand include:
- Local SEO and PPC campaigns
- Content marketing for real estate listings
- Social media marketing and targeted outreach
- Lead generation for construction companies and contractors
Financial Services
Finance is a competitive lead-generation industry. Digital transformation has increased the demand for Fintech services. You can help both financial services and products in generating high-quality leads.
Due to high demand $50 to $300 is the ideal cost per lead that can be offered. Monthly retainer pricing can be determined anywhere between $5000 to $20,000.
Here are the key services you can offer in the financial industry:
- Financial content creation (eBooks and whitepapers)
- Paid Google and LinkedIn campaigns
- Lead scoring and segmentation
- Website SEO for inbound lead generation
Industrial Solutions and Manufacturing
You can start offering lead generation services to the industrial and manufacturing sectors. Both industries have great potential and relatively moderate competition. Industry-specific knowledge and technical strategies can be game-changing.
The manufacturing and industrial sectors are attracting more investments with the expansion of smart technologies. The pay-per-lead cost can be set between $500 to $200 with a fair profit margin. The monthly lead gen service packages can vary from $3000 to $10,000 depending upon the client’s requirements.
Service offerings can consist:
- PPC campaigns
- Industry-specific lead nurturing
- Trade shows and events marketing
- SEO and other inbound lead gen strategies
Profitable Lead Generation Niches For Agencies
There are dozens of industry options for lead-gen agencies. The remaining lead generation niches can be further split into two categories.
- Online lead generation
- Local lead generation
Online Lead Generation Niches
Online lead generation industries involve businesses, products, or services with a tech connection. Here are some options to consider:
IT Services
The IT sector is expanding with the demand for cloud computing, network management, and managed IT services. It can be a profitable lead generation industry if you have some technical knowledge and understanding of complex IT needs.
The remote work ecosystem has further fueled its demand. The average PPL pricing for IT services usually remains between $50 to $250. Monthly retainer subscriptions can be fixed from $3000 to $15,000.
The IT-related lead generation services can include:
- Sales appointments
- Webinar registrations
- Social media connections
- Targeted lead generation
- IT-focused marketing
- Technical content marketing
- Search Engine Optimization
E-learning And Education
This lead generation niche focuses on online learning and education-related businesses. Their primary goal is to generate leads with educational marketing and content creation. It is a fast-growing industry and relatively less competitive.
Online learning solutions and remote education are still on the roll. You can charge your clients between $30 to $150 per lead. The monthly packages for this industry usually range between $2000 to $8000.
Service options for this niche can be considered:
- PPC and social media advertising
- Email marketing and automation for education
- Educational content marketing
- Lead generation for educational institutions and e-learning platforms
E-commerce
E-commerce has experienced tremendous growth in recent times. This highly competitive industry has many subcategories to offer lead generation services. It is expected to expand further as per the online shopping trends and latest tech developments.
Covid-19 was the major catalyst in the rise of direct-to-consumer brands. Depending on the product category and target audience, you can charge anything between $20 to $100 per lead. Monthly retainer offers can be set between $2000 to $10,000.
The popular e-com lead generation service offerings comprise:
- Conversion rate optimization(CRO)
- Abandoned cart email marketing campaigns
- Content marketing (product pages and listings)
- Landing page design and optimization
- PPC advertising and paid marketing
Marketing Agencies
Marketing agencies without solid case studies and portfolios struggle in their early stages. So they outsource their lead generation efforts to firms that deliver promising results. It is a highly competitive industry and well-established marketing agencies are willing to pay more for qualified leads.
Automation and AI tools have completely changed conventional marketing strategies. The pay-per-lead prices can sorted between $30 to $150. Monthly subscriptions should be kept within the $3000 to $12,000 pricing bracket.
In-demand services for marketing agencies include:
- Lead nurturing and CRM management
- Content marketing and thought leadership
- Lead generation for digital marketing services
- Networking and relationship-building
Cybersecurity Solutions
Demand for cyber security solutions has risen with the modern-day data protection and privacy challenges. This is a high-competition niche that requires a substantial cybersecurity background and understanding to get started.
Businesses of all sizes are forced to implement advanced cybersecurity systems for protecting personal and business data. The per lead pricing for this industry can be $50 to $300. Monthly service subscriptions can range between $4000 to $15,000.
The most common services that can be offered:
- Lead generation for cybersecurity services and products
- Cybersecurity consultation bookings
- Virtual events and webinars
- PPC advertising campaigns
Local Lead Generation Niches
Local industries and services also hire lead generation agencies. Here are a few profitable niches for local lead generation.
Roofing
Roofing is a popular home services category and companies always looking for interested homeowners. These services are demanded by both residential and commercial sectors. Local SEO is a key source for generating qualified roofing leads.
The need for roof maintenance services is increased during the windy and stormy seasons. Roofing PPL can range from $30 to $150 depending upon the service requirements. While the monthly retainer offers can negotiated from $2000 to $8000.
Roofing service requirements include:
- Local SEO optimization
- PPC advertising needs
- Phone call and appointment bookings
- Content and social media marketing
Home Remodelling
This is a high-competition home improvement lead generation niche. Its demand has skyrocketed after the emergence of eco-friendly renovations and smart home integration drives. It can be either an entire home remodeling or any distinctive portion like the kitchen, bathroom, and living room.
Pricing for home remodeling leads can range from $50 to $200 per lead. Average monthly packages should be prescribed between $3000 to $10,000.
The key services and offers include:
- Residential and commercial painting leads
- Bathroom remodeling services
- Carpentry and flooring
- Kitchen remodeling
- Local SEO
Cleaning Services
Specialized cleaning service providers hire agencies to generate leads for them. Cleanliness and hygiene awareness have increased the demand. The industry competition is moderate which makes it a reasonable option for starting a lead generation agency.
PPL pricing for cleaning leads can range between $20 and $100. The monthly retainer offers from $2000 to $7000 are good to go.
The lead generation services in this niche include:
- Cold email marketing
- Appointment booking
- Social media marketing
- PPC advertising
- Local SEO for cleaning businesses
Landscaping And Lawn Care
Local landscaping and lawn care companies outsource their lead generation work to agencies. Promotion of seasonal services including property maintenance and enhancement drives the best results.
Understanding the seasonal trends and design innovations can establish a unique selling point for service providers. The pay-per-lead prices for this service can range between $30 to $150. The monthly retainer proposals can go from $2000 to $6000.
The typical services include:
- Email marketing campaigns
- Online display advertising
- Direct mailing
- Appointment booking
Pest Control Services
Your lead generation agency can help pest control companies and service providers in getting new leads. Market competition in this niche is moderate and may have seasonal demand fluctuations.
Its pay-per-lead rates range from $40 to $200 as per client requirements. Qualified leads cost more than raw leads. The monthly packages can be negotiated between $3000 and $8000.
The key services in this niche include:
- Appointments setting
- Local SEO for pest control companies
- Email marketing and lead qualification
- PPC advertising campaigns.
Low Competition Lead Generation Niches For Agencies
As discussed above, market competition is a deciding factor in choosing the right industry for your lead gen business. Here are some low-competition lead generation niches for agencies.
- Personal development and coaching
- Sustainable home products
- Mobile pet grooming
- Customized meal planning
- Art therapy services
Frequently Asked Questions
Wrap Up
Hopefully, you have got some profitable ideas for starting your lead generation agency. Choose the service option as per your interest and research about it. Communication skills also play an important role in the success of a lead gen business.
For B2B lead generation, LinkedIn is the best platform to get started. Use freelance marketplaces, cold email outreach, and PPC ads to get the first client for your agency. To book more appointments there should be a solid offer.