How would you like to make $10K a week PROFIT? With the right lead generation website that is very possible! A while ago I wrote about how I made $61,796.49 in a two month period with one of my lead gen sites. Over the years I’ve perfected my efforts and have been able to scale and leverage my websites with the growing social and mobile mediums. While a lot of things continue to change on a monthly basis, lead generation still remains a very lucrative business. Let’s examine one of my websites that generated $9,475.48 in one week:
If your eyes are anything like mine you may need to click on the above screen capture to be able to break everything down: My Leads (Single Optins, Double Optins, Unconfirmed), Advertising Costs, Revenue (CPA and CPM), and most important – Profit.
Friends, if you get nothing else out of this blog post please look at the number of leads I had to generate to be able to sustain a pretty nice profit. Despite what you may have read somewhere else it doesn’t take millions of leads to start making good money. It all boils down to how you monetize them. When I develop my lead generation websites I know from the very beginning they’re going to convert like fire. Why? Because I don’t mess around when I build them. I dump my heart and soul into the entire process. I won’t settle for a crappy design and I’m not just going to shit out a bunch of copy and pasted content. I take the time to make my sites look bad ass. I know they’re going to generate me a good bit of money so I take a lot of pride in them. Not only am I going to buy ads on search engines I’m also going to receive a shitload of free traffic from SEO. I want it all!
This particular lead generation website considers a “single optin” as a visitor that enters their name and email address but doesn’t confirm that the information is valid. I drive all my traffic into a squeeze page that presents them the material they’re looking for with the squeeze page’s main goal in sucking them all in to see something of higher value on the other side. There is a number of different ways you can achieve this, but you have to offer the user something they want. As a benchmark I like to have a single optin rate of at least 35% on my squeeze pages. Even with this, I’m still losing 65% of the traffic, so that’s not ideal, just a benchmark I want to be around. If I’m using a search engine and bidding on highly targeted keywords I expect the rate to be much higher.
These are the leads that have entered their name and email address and then actually checked their email and confirmed it by clicking on the link my first email. This adds them to my auto-responder sequence which is another way I can monetize. You’ll notice in the above funnel I’m getting around a 45% double optin rate. This isn’t that bad as I like to set my double optin benchmark around 50%. So typically it works out I’m paying around $1 for a single optin and $2 for a double. This is going to vary depending on the niche you’re in. The more aggressive the niche, the more you can afford to pay. For example, if you’re into pay day lending you can afford to pay a pretty good amount for a double optin because if the user actually gets a funded loan you’re going to get paid upwards of $100.
There isn’t much you can do with these leads really and still remain CAN SPAM compliant. Sure, you can add terms that inform the visitors when they enter their name and email that their information may be used for marketing purposes, but generally these leads are very poor quality and a lot of the time not even accurate email addresses. If you do make any money at all from these leads, consider it a bonus.
Nowadays I enter “long term site building mode” each time I start a new lead generation funnel. The days of being a small minded affiliate where you could shit out a couple of weak bridge pages, and bitch when you don’t make 100% ROI, are long gone. A couple of years ago you could be a little bit more aggressive with funneling your traffic through lead generation paths, but as technology has continued to evolved, especially with social media, it’s almost impossible. Most of the traffic in the above example stems from targeted search engine bidding but also some direct site media buys on sites with similar target demographics. SEO traffic is all gravy so it makes sense to take some time just to have good, quality content that’s going to get index by the search engines and rank high for target keywords.
The main source of revenue for this lead generation campaign is by arbitraging CPA offers. Basically we’re just filtering our traffic through to another similar offer and then getting a percentage of each sale or lead generated. Let’s use a television for a “hurt hotline” as an example. Companies will purchase media on television channels and have people that have been harmed by [insert drug here] call an 800 number with their information. They’ll then take these leads and arbitrage them out to the ambulance chaser lawyers that pay big $$ for the lead. Sometimes the price varies depending on how well the leads “close.” The same concept applies to your lead generation offers. You can arbitrage out your leads to other products, services, or to other lead generators. Normally the more creative you get the more money you make!
This is often looked by a lot of large affiliates that purchase traffic. While this seems like a no brainer to me (I’ve been making money with CPM ads since ’98) you can put standard IAB units throughout your lead generation website and make money on a set cost per one thousand impressions! I don’t mean to load your squeeze page down with them, since this may take some of the eyes off your lead gen form, but throughout all the content you produce you can be sitting on a goldmine by just adding a couple of standard banner sizes. Google Adsense, Value Click, Tribal Fusion, are all viable options for making money with CPM ads.
The most important thing of this lead generation website is the bottom line. That’s our end goal. I set my profit benchmark at 100% ROI but this differs from day to day because I’m a split testing nut. You’ll notice in my above screen capture I achieve this on some days but others it’s a bit lower and that’s because I’m performing some type of test. When you’re developing your own lead generation funnel you should consider this and examine your ROI on a weekly or monthly basis so you’ll have room to make optimization decisions. One of the most important things I would like to note here is the amount of profit you can generate with the number of leads. Regardless of what you may have previously thought, it doesn’t take that many leads to be extremely profitable. It’s quality over quantity.
I wanted to share this post as a case study to help you benchmark some important items on your next lead generation campaign. The good thing I like about these campaigns is the flexibility and creativity I get to use. There is really no “wrong” or “right” way. It takes a lot of hard work but that’s anything that’s going to generate long term revenue. If you get started on a lead gen funnel make sure you see it all the way through from development to traffic distribution. Many people start these funnels because they love the idea but eventually quit when they realize it’s going to take a lot of work to get them going and profitable! Some of your number may differ, but keep all of these in your head, get creative and you too can generate similar results!
Ryan Gray is the founder and CEO of NameHero, one of the fastest growing independent web hosts in the United States. Ryan has been working online since 1998 and has over two-decades experience in Internet Entrepreneurship.