Thinking of starting a local lead generation business? Here’s why I quit this business model and what I prefer instead.
In short, if I have to sell anyway, why take all the risk myself and make it more difficult… when I can just get paid upfront on a retainer? Even for local SEO, why not just get paid $1,500 to $2,500/month upfront?
Now the downsides are obvious:
1. You’re more stuck with the client (it’s difficult to just sell the leads to a competitor) – though, who cares if you’re able to land clients easier with case studies and results
2. You’ll make less money per client (but results are quicker, nothing stopping you landing more clients, and you’re profitable faster so you can move quicker)
Neither business models are easy though and it mostly comes down to preference i.e. what you’re personally looking to get out of running a business. But this should provide a nice contrast to all the “easy money” videos on YouTube, and explain some downsides.
Also note: I don’t actually sell local SEO whatsoever any longer, instead focused on eCommerce SEO, which allows even larger monthly retainers again.
