A good lead generation vertical is one that helps fill an existing need for consumers and allows you to make a profit. However, this can come in many shapes and sizes depending on your ability to generate leads, find lead buyers and balance this supply and demand.
Let’s talk about some specific verticals.
Auto insurance is the perfect example of a high volume, low return lead vertical. Because of all the drivers in the U.S. and standard 6 month insurance plans, the market of people requesting insurance quotes is massive and consistent. However, because of such high demand, there is also quite a bit of competition. While many marketers can generate thousands of auto insurance leads per month, these typically sell for less than a few dollars each.
On the other side of the spectrum is the solar vertical. As you’d imagine, solar leads are much less common than auto insurance leads. However, while a closed auto insurance policy may net the insurance company a few hundred dollars, a residential or commercial solar purchase could easily be worth thousands and thousands of dollars. We’ve seen lead generation companies sell the right solar lead for over $500. The combination of low supply, rising demand and high lead value make the revenue potential for solar leads very high. Then again, with a smaller and more specific target market, marketing costs are typically higher as well.
Many lead generation verticals sit somewhere in between the previous two vertical examples and this is true of legal leads. While some legal leads (including those for class action lawsuits) can sell for quite a bit, many others sell for a much more modest amount.
I used these 3 examples to show you that all lead verticals have the potential to be profitable. However, this comes in different ways. This may mean high lead volume with low per/lead revenue, low volume with high per/lead revenue or something in between.
Nobody can really tell you what the best lead generation vertical is, but if you think about the demand and profitability of each lead vertical, you can get a much better idea of what it will take to be profitable in each.