Sales Leads Business

How Profitable Is A Sales Leads Business? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is A Sales Leads Business? (Updated for 2024)

So you want to start a sales leads business?

And the first question that came to your mind was, “well, are sales leads businesses actually profitable?”

With a market size of $55.3B - there’s plenty of business to go around.

Especially considering:

You could start a sales leads business with as low as $200
Based on our data, sales leads businesses generate an average of $5.42M per year
You could see gross margins as high as 50% with sales leads businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a sales leads business.

Let’s dive in!

Is a sales leads business profitable?

Yes, a sales leads business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $5.42M per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your sales leads business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your sales leads business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a sales leads business worth it?

If you’re wondering if a sales leads business is worth it, the answer is a big YES. With sales leads businesses, you have the potential to earn $5.42M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $55.3B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a sales leads business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful sales leads businesses case studies.

Examples Of Profitable Sales Leads Businesses

Here are a few examples of profitable sales leads businesses, and a few more details about them:

1. The Pedowitz Group ($18M/year)

Jeff and Cherie started The Pedowitz Group in 2007, leveraging their expertise in sales and marketing. They saw an opportunity to provide consulting services in the digital marketing space and quickly gained momentum through word-of-mouth and industry referrals. Today, they have achieved over $20 million in annual revenue and continue to focus on growth and providing excellent service to their clients.

Is it profitable? Yes
How much money it makes: $18M/year
How much did it cost to start: $500

How This Couple Started A $20M/Year Sales And Marketing Consulting Firm

Pedowitz Group, a $20M+ consulting agency, shares the story of how they grew their business by prioritizing customer retention/loyalty, being platform-agnostic, and focusing on strong results aligned with clients' key business objectives.

Read this case study

Read by 4,351 founders

2. Chili Piper ($40M/year)

Alina Vandenberghe and her co-founder Nicolas began Chili Piper in 2016, inspired by their extensive backgrounds in product development and sales processes. They identified a common pain point for sales teams: the inefficiency and frustration involved in scheduling meetings and managing sales leads. Through attending numerous industry events and engaging directly with potential customers, they validated that there was a significant need for a solution that could streamline this process.

Their initial approach was very hands-on; at these events, Nicolas would secure interest and demos on the spot, then Alina would handle onboarding and support, allowing them to gather critical real-time feedback. This feedback loop helped them continuously refine their solution, ensuring it met the actual needs of their users. One major challenge they faced was conceptualizing their brand and logo, which Alina sketched over a hundred times before they landed on the right design, overcoming this through persistence and external design help.

Key lessons from their process include the importance of deeply understanding their customers’ problems and remaining adaptable based on direct user insights. They learned early on that personal engagement and a customer-centric approach were crucial components in developing an effective, valued product.

Is it profitable? Yes
How much money it makes: $40M/year

How Alina Vandenberghe Grew Chili Piper to $40M Revenue

Aspiring founders will learn how Chili Piper's founders bootstrapped their way to $3 million ARR without paying salaries, raised over $54 million in funding, and secured rapid growth through strategic partnerships, personalized customer service, and effective influencer marketing campaigns.

Read this case study

Read by 52 founders

3. Wingman ($1.5M/year)

Shruti conceptualized Wingman after her hands-on experience at a fintech company called Pioneer.

While working on their go-to-market strategy, she faced challenges in understanding why some sales reps excelled while others did not, despite similar efforts. Additionally, she struggled to relay customer feedback to a distributed team.

These experiences led her to recording, archiving, and making sales calls searchable, which would help analyze performance and improve communication. Thus, Wingman was born.

Shruti explaining how she got the Wingman business idea

Is it profitable? Yes
How much money it makes: $1.5M/year

How Shruti Kapoor Built Wingman To Seven Figure Revenue and Sold to Us-Based Clari

Discover how Shruti Kapoor transformed her fintech challenges into Wingman, a real-time sales insights powerhouse generating $1.5 million annually by providing actionable feedback to sales teams for just $100 per rep per month—despite starting with zero conversions from 40 targeted meetings.

Read this case study

Read by 362 founders

Learn more about starting a sales leads business:

Where to start?

-> How much does it cost to start a sales leads business?
-> Pros and cons of a sales leads business

Need inspiration?

-> Other sales leads business success stories
-> Marketing ideas for a sales leads business

Other resources

How much can you make with a sales leads business?

With a sales leads business, you can make an average of $5.42M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $200. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a sales leads business make a week?

Based on our data, average weekly revenue for a sales leads business ranges around $113K. As such, you could see monthly revenues of $452K.

To know if your sales leads business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your sales leads business.

How much do sales leads businesses owners make?

The income of a sales leads business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established sales leads business is about $113K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a sales leads business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Sales Leads Business Profit Margins

Generally speaking, a sales leads business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a sales leads business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, sales leads business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, sales leads business owners can ensure long-term sustainability and profitability for their business.

Sales leads business owner salary

The salary of a sales leads business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established sales leads business, in a prime position, might see an average weekly salary around the ballpark of $102K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a sales leads business may be a promising business to start - but the success of your sales leads business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable sales leads business.

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Starting A Sales Leads Business: Everything You Need To Know

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