What Is Local Lead Generation? Definition, Models & Methods

May 18, 2023

What Is Lead Generation?

Lead generation is the process of capturing the interest of an identified audience and getting them to share their contact information. The desired outcome of lead generation is to fill the sales funnel with qualified leads and increase a business's revenue.

What Is Local Lead Generation?

Local lead generation is a hyper-targeted form of lead generation. Local lead generation focuses on an exact location and specified niches with clear parameters, like population, demographics, and competition.

What Is The Local Lead Generation Business Model?

The local lead generation business model is an online strategy that leverages precise methods to drive online traffic to a local business. The number one objective of local lead generation is to get a steady flow of inbound leads that convert into sales.

What Is The Best Source Of Local Lead Generation?

Lead Gen Websites

A local lead generation website is one of the best ways to capture qualified leads. Consider that organic traffic acquires 53% of searches on Google. First, get your local lead generation websites to the top of Google search engines. Then they're in front of a specific audience of people actively looking for your product or service.

Unlike paid ads that rely on interruption marketing, people come to you at the top of the SERPs. Once your lead gen websites are at the top of the search engines, you own valuable digital real estate. And local business owners are happy to pay for that level of exposure.

Local SEO

SEO (Search Engine Optimization) is how to rank on Google. The more dialed in your SEO, the better your position in a search result. According to Bright Edge, 68% of online experiences begin with a search engine. In addition, local SEO trusts local signals and relevancy. Therefore, business owners might hire an SEO agency to help them rank higher in the SERPs. 

Signs like an optimized website and Google My Business (now called Google Business Profile), local content, citations, links, and social media profiles tell Google your company is an authority in your niche. So the more cues you provide the search engines, the more traffic you get. 

Local Paid Advertising

Paid ads (PPC ads) or SEM (Search Engine Marketing) leverage keywords, localized content, and digital marketing strategies to create Google Ads and Facebook Ads. According to Econsultancy, paid search will overtake organic search in 2023.

The goal is to produce a lead generation campaign that meets local search intent. As a result, this lead generation tactic can drive inbound leads and capture online traffic. But PPC advertising comes with a price tag. In fact, research suggests costs will continue to rise by 20%-30% in 2023. 

Social Media Platforms

Social media profiles send additional signs to Google. They also allow you to build engagement with your specified audience. Data suggests that over the past 12 months, the number of active social media users increased by 190 million.

As a result, social media platforms present a massive opportunity for local businesses. They're a way to increase brand awareness, drive more leads to your offer and get more sales. First, focus on utilizing multiple platforms. Then, share relevant and local information with paid ads, videos, reels, or content marketing. 

Landing Pages & Funnels

The sales funnels are the beginning of the customer journey. Sales funnels offer a chance to capture more leads in a local area. There are several steps to this lead generation strategy:

  • First, start with a compelling and high-quality hook, like a discount or promotional deal, to grab a potential customer's interest.
  • Next, take a possible new lead from awareness to purchase with an offer to invoke curiosity.
  • Lastly, take note that each step of your funnel is intentional. The end goal of this inbound marketing strategy is to send the consumer to your landing page.

A landing page is a stand-alone website that requests customers' contact information to gain a quality lead and secure purchase. According to Eyeview Digital, embedding a video on a landing page can increase conversion rates by 80%.

Why Is Local Lead Generation Important?

Local lead generation is important because it connects your business to the local market. The local lead generation business model explained is clear. The number one goal of lead gen is to produce a high-quality lead that converts to a new customer.

To generate leads, develop trust with the search engines. Local lead gen helps build familiarity around your business and brand. Because the emphasis is on local traffic, it's more cost-effective than ranking in a national market. First, connect with a specific audience. Then generate interest in your product or service by sharing value. 

For example, create content or videos that educate, entertain, or solve a problem on your lead generation website. Consider that local lead generation is one of the most critical aspects of the sales process. Content Marketing Institute reports that 85% of B2B companies state lead generation is their most important marketing goal. 

What Is An Example Of Local Lead Generation?

An example of local lead generation is the rank and rent business model. Rank and rent is a simple concept. In 2024, it offers some of the best online scaling and monetization prospects on the internet. The idea is to build micro websites in the right location and target the right service. Get uber-specific about what you offer. For example, create a site that offers popcorn ceiling removal instead of just all drywall services. Then employ local SEO strategies like citations, links to social media profiles, and backlinks to get your rank and rent websites to the top of Google. 

Once you're there, you own prime real estate. When your sites start producing leads, you sell them to a local business owner for 85%-90% profit margins. You're like the arbitrator between a potential lead and a small business. But unlike physical real estate, you have low overhead costs. You're like a digital landlord who owns prime real estate without the headaches of bad tenants or substantial monetary investment costs. 

Rank and rent is super scalable. Because the focus is on the local market, you can get your lead gen website to the top of the search engines in 6 weeks- 6 months. According to Search Engine Journal, 51% of all website traffic comes from organic search. The website, calls, and leads all belong to you. And at the top of the SERPs, you get the attention of organic traffic. 

What Are The Best Tools For Local Lead Generation?


Callsling is a tracking number tool that filters spam calls and automates tasks like invoices and payment gateways. It also offers the option to make outgoing calls on the go using its app. Learn where your calls are coming from and the level of quality calls your sites produce.

Tracking metrics is critical for local lead generation. It lets you know what's working and where to invest for the best returns. Key features of Callsling include lead filters, interactive voice response (IVR), and SMS Leads.


Ahrefs is among the top picks for must-have software for the local lead generation business. Find top keywords, get site audits to improve on-page SEO, and research the best content suggestions. According to Content Marketing Institute, content marketing generates 3X as many leads as traditional outbound marketing but costs 62% less.

Then, leverage Ahrefs to target long-tail keywords with corresponding linking options you can rank for fast. You can also track your SEO performance and progress. Other unique features include Site Explorer (to check out the competition's backlink strategy). And their Rank Tracker option (shows your rating compared to your competitors).        


Majestic software helps find authoritative links from sites with a high domain authority (DA). Using its Link Context feature, this lead gen tool also allows you to spy on websites in your niche or local market.

Majestic shows where your competitors get their backlinks. It can also help build valuable digital real estate and trust with Google search engines. Key features include comparison metrics and filter options.        


Ontraport is a CRM and automation platform. It's developed for lead generators ready to scale. Ontraport offers an all-in-one app that shows you where to invest your time and the best way to discover high-quality leads.

Features specific to Ontraport include a drip email campaign option and lead magnet funnels. Users can also leverage their reputation management software and a testimonial generator. 

Local Grids Heat Map Tool

Local Grids is a rank-tracking software that utilizes proprietary technology. The key to being found in local queries is to be at the top of the Google map pack. Local Grids shows you where your site sits in exact locations. (So you can stop wasting time with incognito searches). Key features of this local lead generation tool include proximity-based searches and progress analysis.        

Google Console

Google Search Console is free. It's a valuable asset that can help evaluate how often a potential client engages with your website. As a result, you get vital data from the search engine in charge. According to SEMRush, Google has 4.3 billion users worldwide and a market share of 92.24%.

GSC can help you determine what keywords to include in your content marketing strategy and what people are searching for now. Access the Crawl Stats report, view the history of Google's crawls, and identify any errors or website coverage issues. Key features include the performance report. A detailed analysis of clicks, impressions, CTRs, position, keyword cannibalization, mobile vs. desktop rankings, and how well you answer search intent. 

Why Local Businesses Should Target Local Leads

Local businesses should target local leads to connect with a definitive market and reach the right customer. HubSpot advises that 46% of all searches on Google are looking for local information. In addition, the local lead generation process is cost-effective because the emphasis is on the local market. 

So you're not competing at a national level. But this results in higher ROIs and an ability to reach a broader localized demand or connect with a qualified lead. Using lead generation in digital marketing offers another channel to capture qualified sales leads for business owners. Data suggests that local search sends 70% of customers to a physical store. As a result, you get higher-quality leads with better conversion rates. 

What Are The Pros & Cons Of Local Lead Generation?


A pro of local lead gen is increased brand awareness, and visibility

Another pro of the model is an expansion and more significant business opportunities. For example, lead generation can give you an angle for your digital marketing agency. Then you have a unique sales proposition and can get even better results for your clients.

Reduced cold calling is also a pro of local lead gen


A con of the model is developing the right lead generation services 

Another con of local lead gen is securing a steady stream of online traffic to your offer

Finding a business owner that sees the value in your service in a local market can be a challenge for lead generators

How To Rank Higher In The SERPs

  • Build a mobile-friendly and user-focused website that has a cohesive internal linking strategy.
  • Use strategic lead generation campaigns and develop an active presence on social media channels. Then link your profile pages to your website.
  • Engage with your online audience on multiple channels and promote conversation.

  • Publish local, relevant, and valuable content.

  • Leverage video marketing approaches like YouTube shorts, Instagram reels or TikTok videos. (69% of people prefer watching short videos to learn about a product/service).

  • Create a Google Business Profile that lands in the map pack and have consistent citations. (A GBP acts like a secondary source. As a result, you'll get a sales lead that converts). 

Blogging Wizard reports that 68% of local business owners need help with local lead generation. So if you have the right local rank and rent SEO skills to produce steady online traffic and convertible leads, you can increase a business owner's profitability with lead generation websites.

How Much Does It Cost To Start A Local Lead Generation Business?

It costs about $500 to start a local lead generation business.  Of course, organic traffic is hard to get, and Google doesn't just give it away. So have a budget to invest in the tools and software you need to succeed, like:

  • Domain & Hosting: $10-$20/year for a domain on sites like GoDaddy
  • $5-$18/month for hosting on platforms like Namecheap
  • Call Tracking Software: $9-$12/number with services like CallRail
  • Third-party Tools: $99/year for software like Ahrefs

Free research tools like Keywords Everywhere and Google Keyword Planner help determine longtail keywords. Or search queries you can rank for fast to climb the SERPs in as little as six weeks. Consider using a free Gmail account. Creating a second site on Google costs nothing. And adding a Google Business Profile is free, but both provide secondary channels. As a result, you can increase the number of leads you generate.

Over 10 million business owners in the USA don't have a website. But there are 8.5 billion searches on Google daily. When you own digital assets at the top of Google, you get a ton of eyeballs on your sites. These are people actively searching online for the product or service you provide.

So if you're at the top, they find you first. Unlike physical real estate investments, the local lead generation business has low start-up costs and minimal overhead. Once your sites rank, they need little to no upkeep. But this allows you to build and scale fast. Develop an online empire to harness time freedom, and earn passive income. 

Is Local Lead Generation Passive Income?

Yes, local lead generation is passive income. But you need to get your systems in place and commit to doing the hard work at the beginning. Local lead generation is five easy steps:

1. Pick a niche:

Target a niche in a location with the right population. Aim for a locale with little competition and high market demand. The most profitable local lead generation niches are phone driven and provide a service. Examples include niches like tree services, gutter cleaning, and kitchen renovations.

2. Build and optimize your lead gen sites: 

Optimization tactics include on-page SEO, high-quality content, h2 tags, and videos or images. In addition, leverage off-site SEO using backlinks, citations, and GPBs.

3. Rank your site

Use localized SEO strategies like links to social media profiles and press releases. Then add local citations and niche-relevant backlinks. But this is how you win favor with Google algorithms and get your lead gen site to the top of the SERPs.

4. Rent your digital property for profits of 85%-90%:

Once your websites produce leads, you find a small business owner and sell them for profit. The websites, the call tracking number, and the leads belong to you. So you control every aspect of your lead generation business. Devise a payment arrangement such as a flat monthly fee, pay-per-lead, or commission deal. Then get paid every month on autopilot.

5. Rinse & repeat

Build and rank as many sites as you want in any niche and any city. Local lead generation has few startup costs (around $500/site) and low overhead. But each one you rent can make you $500-$2000+/month. Take this site, for example, grandrapidstree.com.

I built this lead gen property in 2014. But it's been making me $2000/month for the last 8 years. Plus, this site is only one of over 80 lead gen sites I own and rent. Because local lead generation allows you to scale your online business fast, you can create passive income.

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Ippei Kanehara

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2024, is to build your own lead generation business.

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