How Much Does It Cost To Start A Lead Generation Business? (In 2024)
Looking to start a lead generation business?
But curious about:
- how much it costs to start a lead generation business?
- what are the typical lead generation business startup costs?
- or the actual cost of starting lead generation businesses?
Well, we have the data to prove it, supported by real lead generation businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a lead generation business?
Based on our data reported by actual lead generation business founders, the average cost of starting a lead generation business is between $100 and $2,000,000.
Additionally, our data shows that the the median startup costs for a lead generation business are around $4.13K.
Remember, though, not all lead generation businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of lead generation businesses
Real World Examples: How much does it cost to start a lead generation business?
We asked real lead generation business founders and business owners how much it actually cost to get started?
Here is what they said:
Ross Knap
Founder of CallPage ($65K/month)
"Soon after we raised $50,000 from AIP Seed Capital and there was no looking back."
Ross Knap is the founder of CallPage, a software business that has grown rapidly and operates internationally.
Joel Allen
Founder of GoEdison ($18K/month)
"Our “launch” is kinda funny. We launched with a video and a blog and a few hundred dollars in the marketing budget."
James Harper is the founder of GoEdison, a small business marketing agency that helps service-based businesses increase call volume and lead-generation.
Jake Jorgovan
Founder of Lead Cookie ($55K/month)
"Within the first 2 weeks, I had closed $12k of MRR by selling to people within my existing network. That was rapid validation that I had something that was working!"
Jake Jorgovan is the founder of Lead Cookie, a Linkedin lead generation and appointment setting company that helps B2B companies schedule appointments with their target customers.
Jeff Pedowitz
Founder of The Pedowitz Group ($1.5M/month)
"We had just moved into a new house, we had three young (and hungry!) kids, and so our first job was working on redesigning an environmental company’s collateral."
Jeff Pedowitz is the founder of The Pedowitz Group, a sales/marketing consulting agency that has grown to over $20M in revenue annually.
Ebs Turner
Founder of Prop Media ($15.5K/month)
"The business started with no investment and a negative bank balance."
Ebs Turner is the founder of Prop Media, a property specialist marketing agency that generates around $18,000 per month.
Tareq Hasan
Founder of weMail ($120/month)
"If it comes to the cost of developing, the process is a continuous one, regarding investments and efforts. Our initial cost was for the webserver, domain & Google cloud servers, and Google cloud functions. You can also consider the investment behind our marketing, engineering, and design team along with the logistics."
Tareq Hasan is the co-founder of weDevs, a company specializing in WordPress products that started in 2008.
Tim Sumer
Founder of Video Jaguar ($32K/month)
"I was able to bootstrap most of the startup costs and utilize my digital marketing firm, USA Marketing Pros, to help design and market the website."
Tim Sumer is the founder of Video Jaguar, an all-in-one video marketing software business that was launched in August 2019 and is currently doing $32,911.77 per month in sales.
Sunny Paris
Founder of noCRM.io ($220K/month)
"We used probably 80k€ to get a product and 500k€ to break even."
Sunny Paris is the co-founder of noCRM.io, a Lead Management Software business launched in 2014 that has grown to $2.4M in annual recurring revenue and $200K in average monthly revenue.
Eldar Galiev
Founder of Growave ($110K/month)
"One of the lessons that we learned from the Growave launch is that we took over six months to launch the product, costing everything. Thanks to profits from ThinkLab, we managed to pull it through. Otherwise, it wouldn’t be possible to release Growave to the market."
Eldar is the founder of Growave, an all-in-one marketing tool for Shopify brands.
Arrigo Lupori
Founder of Koala Rank ($8K/month)
"I spent weeks working first on my own, then with a designer, I paid $350 on Upwork to bring up a branding that felt more thought through, more professional, and, most importantly, 100% unique."
Arrigo is the founder of Koala Rank, a content marketing service for small B2B firms that started in January 2020 and has grown to generate $8K in MRR.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful lead generation businesses that you can learn from.
Starting a lead generation business - what you should know:
Starting a lead generation business involves various costs and factors that can impact your budget significantly.
Initial Setup Costs
The initial setup costs for a lead generation business primarily depend on the tools and software you choose. Basic CRM systems like HubSpot offer free tiers, but more advanced features can run you $50-$100 per month. Website development can cost from as low as $500 for a simple site to $5,000 or more for a custom-designed, feature-rich site. Additionally, legal fees to set up your business entity may range from $500 to $1,500.
Marketing and Advertising
Your expenditures for marketing and advertising will vary greatly depending on your strategy. SEO-focused strategies may require an initial investment of around $500-$1,000 for content creation and optimization tools. Paid advertising on platforms like Google Ads can cost anywhere from $2,000 to $10,000 per month, depending on your target audience and competition. Social media advertising can be more affordable, with some campaigns running effectively at $500-$1,500 per month.
Software and Tools
Besides CRM systems, you’ll need other tools for email marketing, analytics, and project management. Email marketing platforms like Mailchimp can cost between $10 and $300 per month, depending on your list size and needs. Analytics tools like Google Analytics are mostly free, but more advanced tools can cost $100-$500 per month. Project management tools like Trello or Asana range from free to $12.50 per user per month for premium features.
Staffing
If you choose to hire staff or outsource tasks, this will be another significant expense. Hiring freelance writers and designers can cost between $30-$100 per hour, while virtual assistants can run about $15-$30 per hour. Full-time employees will obviously carry higher costs, including salaries, benefits, and taxes, potentially costing you upwards of $40,000-$60,000 per year per employee.
Understanding these cost factors can help you budget more effectively and set realistic expectations for your lead generation business.
Potential Costs of Starting a Lead Generation Business
Starting a lead generation business involves several upfront and ongoing costs. Below is a detailed breakdown of potential expenses you may incur:
| Expense Category | Description | Estimated Cost (USD) |
|---|---|---|
| Website Development and Hosting | Custom website design, domain registration, and hosting fees. | $500 - $5,000 for design, $10 - $30 per month for hosting |
| Lead Generation Tools | Software for capturing and managing leads, such as OptinMonster or LeadPages. | $25 - $200 per month |
| Customer Relationship Management (CRM) | CRM systems like HubSpot or Salesforce for tracking leads. | $50 - $300 per month |
| Email Marketing Software | Tools for email campaigns and automation, like Mailchimp or ConvertKit. | $30 - $150 per month |
| Content Creation | Blog posts, eBooks, whitepapers, video content creation. | $50 - $500 per piece |
| Social Media Management Tools | Platforms like Hootsuite or Buffer for managing social media accounts. | $10 - $99 per month |
| Advertising Costs | Paid advertising on Google Ads, Facebook Ads, LinkedIn, etc. | $100 - $1,000 per month |
| SEO Services | Search Engine Optimization services to improve website ranking. | $500 - $2,000 per month |
| Freelancers and Contractors | Hiring freelancers for specialized tasks like graphic design, copywriting, or technical support. | $20 - $100 per hour |
| Licensing and Legal Fees | Business licenses, legal advice, and contracts. | $200 - $1,000 (one-time) |
| Office Supplies and Equipment | Computers, software, phone systems, and other necessary office equipment. | $1,000 - $5,000 (one-time) |
| Training and Certifications | Courses and certifications relevant to lead generation. | $200 - $1,500 |
| Miscellaneous Expenses | Other unpredictable or variable costs. | $100 - $500 per month |
This detailed table should provide a comprehensive understanding of the potential costs involved in starting a lead generation business, allowing you to plan your budget more effectively.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
