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THREAD:
Business Breakdown: “Best ____” / “Top 10 ____”
How these companies are generating hundreds of millions of dollars through lead generation on Google (and how you can do it too).
Business Breakdown: “Best ____” / “Top 10 ____”
How these companies are generating hundreds of millions of dollars through lead generation on Google (and how you can do it too).
Ever search Google for “best __” or “top __ “ ? The top of Google’s ad results are filled with companies listing the “top 10” choices. These are lead generation companies. They are getting paid a commission for every lead or phone call they generate to the companies on the list.
Here is an example of what a page looks like:
The order of the list is based on who is paying them the highest rate, not necessarily the quality of the company.
Take a look at the search results for the term “best home warranty”:
Take a look at the search results for the term “best home warranty”:
Two of the biggest companies in this industry are at the top of the results.
https://www.consumersadvocate.org/ https://www.naturalint.com/
https://www.consumersadvocate.org/ https://www.naturalint.com/
ConsumersAdvocate runs all their traffic from one domain.
Natural Intelligence generally separates each vertical into its own domain.
In this case: https://www.top10homewarrantyreviews.com/
Natural Intelligence generally separates each vertical into its own domain.
In this case: https://www.top10homewarrantyreviews.com/
Both companies are spending and generating hundreds of millions each year.
ConsumersAdvocate is the second biggest spending domain on Google search ads, spending 10.8 million per month.
ConsumersAdvocate is the second biggest spending domain on Google search ads, spending 10.8 million per month.
It is a bit harder to track down Natural Intelligence since they are spread across so many domains. But here is their biggest spending domain, spending 1.51 million per month.
Here is the main site for Natural Intelligence, you can see some of the different verticals they are in: https://www.top10.com/
Natural Intelligence is based in Israel with 377 employees.
Natural Intelligence is based in Israel with 377 employees.
ConsumersAdvocate is based in Puerto Rico with 77 employees. I would assume they are taking advantage of Act 20 / 22 so that their owners pay 4% income tax.
Take a look at the site designs, they are fairly simple. Literally just lists in most cases, but well optimized for conversions. The big advantage that these companies have is their business development and their volume of leads that they generate.
Because of this, they can negotiate much higher commissions per lead that they send in. Someone looking to start competing directly with them in some of these competitive finance verticals would have a hard time with this.
I think there could be an opportunity for someone to take this model and try it in smaller verticals / niches that aren’t dominated by these companies already. There are endless possibilities to create a site like this and start generating leads in a less competitive space.
Think of a niche where leads have a high value, create a site like this and start sending Google Ads traffic to the top companies. Either try to set up a lead gen commission beforehand or take some of the data from your initial test to leverage a lead gen deal with the companies.
Play them off each other to get the highest rate possible and have them fight over being listed in the #1 spot.
Let me know if this is interesting at all, I have a few more business breakdowns in mind. Digging into biz models not typically discussed on Twitter.
