Lead Management App Business

34 Pros & Cons Of Starting A Lead Management App Business (2024)

Pat Walls

•

Updated: January 18th, 2023

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Trying to understand the pros and cons of starting a lead management app business?

Here are all of the pros and cons of selling online:

Pros Of A Lead Management App Business

Pros	Description
Flexibility	You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home	It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work	Starting a lead management app business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable	With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
No overhead costs	To get your lead management app business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
High customer retention rates	Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins	The gross margins for your lead management app business are typically around 83%, which is considerably high and allows you to grow your business and manage costs easily.
Control of workload	With starting a lead management app business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Unlimited income potential	With starting a lead management app business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
You are your own boss!	With starting a lead management app business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Predictable income stream	Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
More convenient user experience using an app	The smartphone market is continually growing, and many consumers prefer to use an app over a website. Bonus points if your app is accessible to users without WiFi!
You can generate revenue through your app!	Although it can be pricey to develop an app, there are various different ways to generate revenue. You can make it so that customers pay a small fee to download your app and you can generate revenue through ads + sponsors.
App store allows you to reach a wide audience	If your app is listed in the app store, you are easily accessible to users that frequently visit the app store. App store listings also show as separate entries on Google’s search rankings, which allows for more users to see your business!
You can work from anywhere!	Not only can you start your lead management app business from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
Strong Demand & Relatively Recession Proof	The demand for lead management app business is increasing year over year and the business is known to be relatively recession proof.
Various different ways to make money	With starting a lead management app business, there is not just one business model to choose from. This field is amazing in that there are various different ways to make money. Although this may complicate things, it's great to have different options and sources of revenue.
Make money while you sleep	The advantage of starting a lead management app business is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs.
Results and revenue happen quickly!	Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow all the steps to validate your idea before launch, you are likely to see quick results and ROI.

Cons Of A Lead Management App Business

Cons	Description
Crowded Space	Competition is high when it comes to your lead management app business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Security Issues	With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Lack of benefits	With a lead management app business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation	Often times, as a lead management app business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes	As a lead management app business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net	Typically, as a lead management app business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.
Stressful work	This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Churn	In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Difficult to build trust with your customer	With starting a lead management app business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Complex development process.	The development process for a lead management app business can be quite complex, which may cause delays and challenges when launching and growing your product.
Profit-sharing with the app store	If you are using your app to drive revenue, either through paid downloads or through purchases of your services through the app, then be aware that app stores get a substantial cut (around 30%) of revenue on top of sales tax!
Complex maintenance	Your lead management app business will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.
You might struggle financially (at first)!	If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
Minimal physical activity	A big part of starting a lead management app business is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.
Learning Curve	When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.