6 Ways To Sell Leads to Local Businesses PLUS 5 Essential Generation Steps

May 5, 2024

The 6 ways to sell leads to local businesses are:

  1. Monthly retainers
  2. Pay per leads
  3. Commission deals
  4. Selling digital assets
  5. Going through a leads broker
  6. Buying and selling leads

Lead generation is a business model where an individual or company gathers potential customers or leads and sells them to businesses in a specific industry. This is an important strategy for local businesses, real estate companies, and home services because to boost sales. According to Authority Website Income, 53% of marketers allocate half or more of their budget to lead generation. Many businesses outsource their lead generation strategies to a lead generation service to save costs.

Companies that sell leads online like, Houzz, Kaspr, and ZoomInfo have become models of  success in the lead generation industry. These platforms show how lead gen programs paired with technology can enhance the efficiency of wholesale lead generation. They present a vital resource for businesses aiming to expand their customer base and increase their market presence.

In this article, you’ll learn the 6 ways to sell leads to local businesses. You’ll also discover the 5 lead generation steps to start your own lead generation business.

1. Rank Websites for Local Leads

Ranking websites for specific local services lets you generate leads actively searching for their services online. Once these websites attract traffic, you capture potential customer details interested in these services. You then sell these leads to local businesses looking for new customers.

The price of each lead is determined based on the industry's average customer value and the potential revenue that the lead represents for the business. This model allows you to leverage your SEO skills to generate a continuous income stream by connecting businesses with relevant customers. A single local lead generation site can earn $500 to $2,000 per month from leads. You can create and rank multiple websites for different services.

2. Pay Per Lead

Pay per lead is when a client pays for each sales lead received. It's a common way to sell leads for new and small businesses. You do this by first establishing what a qualified lead is for your client. The client will then pay a set fee for each qualified lead you give them. According to LinkedIn, a lead generated through content marketing could cost from $5 to $20. To know how much to charge your client, you need to know your client’s business revenue. According to LeadsHook, the total revenue will be the basis of the percentage you charge your client. For low value leads which are not easily convertible, you can charge 1-1.5% from the total sale. For high value leads in competitive industries, you can charge 2-3% from the total sale. 

Below is a table for projected average costs per lead depending on the industry for 2023, according to Linchpinseo.


Average Costs Per Lead











Consumer Products


Travel & Tourism


Media & Publishing


Business Services


Industrial & Manufacturing






IT Industry


3. Commission Deal

A commission deal is getting a percent commission on the profit for each lead generated. In 2024, the average price of a lead from a B2B lead generation service is around 20% net profit per sale. But it will still depend on your agreement with the client. They will only hire you if you’ll give a lower price compared to how much it would have cost them to get the lead themselves.

4. Sell the Digital Asset

Selling a digital asset is when you sell a website or social media page you created to generate leads. Some top social media platforms you can sell are Facebook, Instagram, LinkedIn, or YouTube accounts with high follower counts. For businesses, buying your digital assets can also help expand their online presence. According to LAIRE Digital Marketing Agency, a lead generating website can cost $35,000 to $125,000. Selling your digital asset allows you to engage in targeted local content syndication, where you can republish your website content in another platform to reach a larger audience of potential customers.

5. Go Through a Leads Broker

A leads broker is an individual or company you can sell your leads to. The broker will be the one responsible with reselling those leads to local businesses for a profit. With a broker’s network of potential clients, it will be easier to sell your leads. You can deal with lead broker companies like UpLead for a fee. According to HubSpot, the average cost of a B2B lead is around $200.

6. Monthly Local Service Retainer

A monthly retainer is a fixed fee paid monthly to retain services or access to professional advice. In this case, a monthly retainer is when a company pays a set fee each month for a specified number of leads. Lead selling platforms like ZoomInfo provide a similar service by providing access to their database. Delivering high quality leads will make businesses want to continue their partnership with you. According to Expandi.iom the retainer’s fee is $3,000 to $20,000 a month for lead generation agencies. The value you charge depends on the quantity and quality of leads you provided as well as the industry that you are working with.

What are the Steps to Selling Leads to Local Businesses Successfully?

1. Choose a Local Lead Generation Niche

Choosing a niche is deciding on a specific type of business and area to focus on when selling leads. Instead of targeting many industries, focus on a particular field. Search on Google for business listings without websites and choose an area with a population of 75k to 250k. Choosing a specified field will tailor your lead generation strategies to meet the needs of these businesses.

2. Verify the Niche Opportunity With Market Research

Verifying niche opportunities with market research means determining the viability and profitability of the market. Identify your target audience and the demands for the services and products that they need. Note the competitors you will have in your chosen niche. Research important keywords. Target long tail keywords that you can rank for quickly. You can use tools like Google Trends to assess the potential of your chosen niche.

3. Pick a Lead Generation Method

Picking a lead generation method is choosing a strategy that will increase the chances of attracting potential customers in your chosen niche.  You can generate sales leads by ranking a website with local SEO, using paid advertising, utilizing cold calling and emailing, and social media outreach.

  • Rank a website with local SEO. Local SEO involves optimizing a website to rank higher in local search results. You can do this by optimize your Google My Business listing, using local keywords, and creating location-specific content. This helps businesses become more visible to local customers searching for their products or services.
  • Paid Advertising. Paid advertising, such as Google Ads, allows businesses to place ads on Google's search results and other websites. Target specific keywords and demographics to attract leads actively searching for the service or product. Google Analytics can help analyze the performance of your ads. Identify which ads generate the most leads and conversions.
  • Cold Calling. Cold calling involves contacting potential customers who have not previously interacted with your business. Reach out through outbound telemarketing to pitch your product or service to generate interest or a sale.
  • Cold Emailing. Cold emailing targets potential customers via email. Use a lead magnet, such as a free ebook or webinar, to entice recipients to provide their email addresses, allowing for follow-up and engagement. Use a customer data platform (CDP) to organize your list of qualified lead contacts before sending out your email campaigns.
  • Social Media Outreach. Social media outreach involves using platforms like Facebook, Instagram, and LinkedIn to connect with potential customers. Share relevant content marketing pieces and engage with users. 

4. Find a Local Business to Buy the Leads

Finding a local business to buy your leads makes it easier for you to work closely together. You can help connect these businesses to the right market and the right customer. According to Hubspot, 46% of searches in Google are looking for local information.

You can find these businesses in online directories and local business referral networks. Show how your leads will add value to their business and discuss a partnership. Some companies that sell leads to local businesses are Kaspr, ZoomInfo, CIENCE, and HomeAdvisor. These lead generation businesses give access to a database of email addresses and phone numbers. They provide B2B and B2C contacts, including company data for other services. Some of them also use AI-powered tools to find potential customers. 

To approach local businesses to sell leads, you first need to identify companies within your niche that will benefit from new customer inquiries. Use local business directories and LinkedIn. You can then try and contact them through phone calls, emails or in-person visits. Tailor your pitch to show how your leads can help grow their business. It helps to offer them a small batch of leads to show your value.

Listen to your customer’s concerns to handle objections when selling leads to local businesses. A good tip is to share success stories and case studies about how your leads have helped small businesses like them. If they’re worried about the price, you can offer flexible payment options and highlight the return on investment.

5. Negotiate Payment Terms With the Local Business

Negotiating payment terms with a local business is discussing and agreeing on a model that benefits you and your customer. You can provide them with options like a monthly retainer, paying per lead, or a commission-based payment. Factor in the niche, the quality of the lead, the number and the consistency of leads generated.

Assess the potential value, research competitors, and calculate costs to set the right price for the leads when selling to local businesses. You can factor in conversion rates and average customer value. Use competitive intelligence gathering to find out what your competitors are charging for similar leads. Consider the profit margin that aligns with industry standards and provides value to both you and the buyer.

What are the Key Considerations When Selling Leads to Local Businesses?

When selling leads to local businesses, consider:

  • Income potential of the niche: Niches offer higher financial returns for leads depending on the value of each conversion. Industries like IT, with high customer values, pay more for valuable leads.
  • Quality of Leads: Ensure the leads are relevant and have a high likelihood of converting. Valuable leads are those that closely match the business's target customer profile.
  • Relationship and Trust: Build a strong, trustful relationship with the local business. Communicate openly about how you generate leads so they meet the business's needs.

What are the Best Practices for Selling Leads to Local Businesses?

The best practices for selling leads to local businesses are:

  • Ensure leads are well-informed and engaged before passing them to businesses. This increases the likelihood of conversion.
  • Choose the right website design to attract more qualified leads.
  • Rank leads based on their actions and engagement to identify the most promising ones.
  • Build an ideal customer profile. Understand and target the characteristics of high-value customers for a more qualified lead generation.
  • Encourage satisfied clients to refer others, leveraging their networks for inbound leads.

What Tools Can You Use To Sell Leads to Local Businesses?

The tools you can use to sell leads to local businesses are:


Aggregatur is a lead selling software designed to improve lead distribution. It offers real-time call selling and routing, comprehensive tracking dashboards, and intelligent campaign tracking. This allows businesses to efficiently match leads to the right clients.


HubSpot provides a Marketing Hub for effective lead generation. Businesses can capture inbound leads using tools like website forms, pop-ups, live chat, and chatbots.


Salesforce is a CRM platform that unifies marketing, sales, commerce, service, and IT teams. Salesforce's products like Sales Cloud and Marketing Cloud offer tools for efficient lead generation and distribution.


Mailmunch is an email marketing and lead generation software. It engages website traffic and converts them into leads. With features like forms, pop-ups, landing pages, and marketing automation, Mailmunch helps build an engaged audience.


Leadfeeder is a B2B lead generation tool that transforms website traffic into potential clients. By identifying high-potential leads and connecting with decision-makers through contact databases, Leadfeeder optimizes sales and marketing efforts.

What are the Pros and Cons of Selling Leads to Local Businesses?


High income and profit margins up to 80-90%

Low startup costs

Control over your business and assets, such as websites and leads.

Resilient and recession-proof business model with a growing demand in various industries


Time-consuming to run SEO services for lead generation websites 

Difficulty finding potential clients in the local community willing to pay for leads

Requires a specific skill set, particularly in SEO services for attracting potential clients.

Is It Legal To Sell Leads?

Yes, it’s legal to sell leads. According to LinkedIn, the global B2B lead generation market size was $1,900 million in 2021. However, when selling leads, you must comply with the data privacy laws in the area you’re selling to. There is the General Data Protection Regulation (GDPR) in the European Union or the California Consumer Privacy Act (CCPA) in the United States. If you don’t comply with your area’s laws, you can incur fines and penalties stated under the law.

You don't need a license to sell leads, but you will need the appropriate licensing required by the state/country you're in. This is for tax and business registration purposes. Similarly, you should only sell leads to qualified, locally licensed, insured, and legal business owners.

What is the Most Effective Way To Generate Leads?

Local lead generation is the most effective way to generate leads. It connects businesses with their target market at a lower cost. Around 46% of all Google searches are looking for something local to the user. By optimizing for location-specific keywords and creating accurate Google My Business profiles, businesses enhance their presence in local search results. This yields higher return on investments and quality leads with better conversion rates. 

Local lead generation websites for sale make $15,000 to $35,000 according to LAIRE Digital Marketing Agency. For an effective and consistent lead generation website, prices can reach $35,000 to $125,000.

On the other hand, alternatives like PPC advertising and hiring lead generation services might involve higher costs and less targeted reach. According to HubSpot, advertising became less effective with 64% of people finding them intrusive and annoying. If your number one objective is to make money money online through a steady business model, then local lead generation is for you.

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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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