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how does the lead generation business model work how do you make money with lead generation that's what I want to talk about in today's video I am the cold email King I wrote the book cold email Manifesto and we've made millions of dollars selling leads both at x27 our lead generation agency and now at lead chart so in today's video I want to take you through the process of selling leads what is the lead generation business model stick around this is going to be a good one but before we jump into it make sure that you subscribe down below and smash that like button for the YouTube algorithm all right let's go to the piece of paper and I'll show you the lead generation business model so what is business business is buying something for one dollar and selling it for one dollar plus some amount this amount is your profit so the true lead generation business model would be buying leads for let's say from lead shark for 0.50 per lead and then you sell them so you buy for this amount and then you sell for any amount over this so 0.50 and up so how can you frame the leads in a way that gets people to buy well there are plenty of ways to justify this profit number the first thing that you can use to justify it is time savings slash hand holding that means that people pay you an extra fee because they don't have to use the database somebody hires you as a lead generator and gives you the criteria and you just deliver the leads every single month so that's Time Savings that's Automation and that allows you to add some profit for your labor another way to do it is arbitrage Arbitrage means taking advantage of the difference between the actual price and the price that the consumer thinks it should cost so this will allow you to go on a platform like upwork for instance and sell leads for a dollar a lead because they don't know that a lead should be 50 cents or if you're on the bigger lead shark packages maybe you negotiate a crazy good Enterprise deal and you get leads for 35 cents now you can sell them for 50 cents and still make money in between that is arbitrage so what is the lead generation business model well you download leads from lead shark you sell them to customers on various other platforms and you make a profit you make money that is the lead generation business model so how do you actually sell these leads once you have them well there's a couple different platforms that you can go to you can sell leads on Fiverr there's a ton of different lead generation offers there people will go there and buy leads you could sell leads on upwork which is another freelancing platform where there's a ton every time I try to buy leads on upwork I get hit by 20 or 30 different people trying to offer them so it's a very competitive Marketplace maybe not the best place to go for Arbitrage but a great place to go for Time Savings the number one spot to sell leads though is not Fiverr it's not upwork it is direct pitching via cold email what is a cold email a cold email is sending a message to somebody that has never met you before and pitching your product or service to them in a way that gets them to buy what I like about cold email is you are entering the world of the qualified prospects you're sending cold emails to sdrs that's a sales development rep you're sending cold emails to director of sales you're sending cold emails to CEOs even anyone that's buying leads you can contact directly via cold email and that's what makes this more effective because if you want to use Arbitrage you really don't want a customer that knows how cheap leads are otherwise the Arbitrage opportunity wouldn't exist if you reach out to a CEO to sell cold email leads and they tell you that they can get leads for 50 cents on lead shark now all of a sudden you can't sell the leads for 65 cents or a dollar so in order to maintain that Arbitrage and that information disconnect you will need to send cold emails to these people in order to find the script for selling lead generation vehicle email we actually made a whole YouTube video on that so I would watch that next if I were you in terms of finding the lead criteria then there's one place to go to get these leads in order to sell them as part of the lead generation business model and that is leadshark.com has all of the leads you need verified ready to go with the zero percent bounce rate guarantee so even if your leads bounce on send you get five for free so you're actually incentivized to have more bounces and our company is incentivized to decrease the bounce rate so check that out at leadshark.com if you have any more questions on the lead generation business model let me know in the comments down below I'd love to get a conversation going thanks for watching the video be sure to smash that like button to encourage yourself content on YouTube subscribe for more videos like this and I'll talk to you soon thanks for watching I'm Alex Berman