High Lifetime Value Industries
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Sam Parr and Shaan Puri share insights on starting a lead generation business, emphasizing the importance of targeting high-value industries and understanding customer lifetime value.
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First Steps for Lead Gen Business:
- Research successful competitors (2-3 years old)
- Contact them under pretense of buying or featuring them
- Learn their business model, traffic sources, and pricing
- Understand their lead qualification process
- Identify common formulas that work (80/20 rule)
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Validation Process:
- Contact potential lead buyers first
- Get price quotes for qualified leads
- Test ad campaigns to generate leads
- Compare acquisition cost vs. selling price
- Example: Trucking leads sold for $100-150, cost $250 to acquire
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Target Industry Selection Criteria:
- High purchase price of product/service
- Frequency of purchases
- Size of target market
- Calculate: Price × Frequency × Market Size
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Recommended Industries:
- Senior Living ($6k/month, 24-month average stay)
- Pool Construction ($50k+ projects)
- Moving Companies
- Mental Health Facilities (emerging market)
- Construction Companies
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Strategic Advantages:
- Look for industries with poor digital marketing
- Use content marketing to reduce ad costs
- Focus on educational content for complex services
- Partner with vetted service providers
- Target local markets with less competition
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Revenue Model:
- Qualify leads thoroughly
- Build trust through content
- Connect qualified leads to service providers
- Earn commission on successful conversions
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.