Lead generation is a marketing process of identifying and attracting potential customers with the goal of converting them into actual customers.

Generating leads is essential for business growth. Because customers can be fickle, and not all leads will turn into customers, businesses need to have a continuous lead generation strategy.  Constant lead gen efforts help the business in acquiring a healthy customer base and ensure that it regularly has new sales opportunities.

Why Should You Outsource Lead Generation?

While lead generation is undoubtedly essential to a business marketing plan, it can also be labor-intensive. It involves a wide range of campaigns and strategies to turn a significant number of attracted audiences into qualified leads. Since lead generation activities can be a time-consuming and expensive process, many companies choose to outsource these tasks to third-party service providers.

Outsourcing lead generation services means hiring a third-party company to help you generate and manage business leads. A lead generation company has professional teams who can provide a wide range of services, such as content marketing, email marketing, Search Engine Optimization (SEO), appointment setting, event promotion, or content creation.

Outsourcing lead generation to companies that specialize in sales development can help businesses generate more leads efficiently, leading to higher conversion rates and increased revenue.

It might be a good idea for your business to outsource lead generation if:

  • You need to scale your lead generation efforts quickly. It can help you scale your business quickly without having to invest in additional resources or infrastructure. This is especially beneficial for companies experiencing rapid growth or entering new markets.
  • You lack the expertise. Generating leads requires expertise and resources that your business may not have in-house.
  • You need to reduce costs. Outsourcing lead generation can be more affordable than hiring and training a dedicated team of in-house lead generators.
  • Your sales team is overwhelmed. The sales team’s core responsibility of closing deals may be compromised if they spend excessive time generating leads. By outsourcing, your sales team can concentrate on what they do best: selling.

Factors Affecting the Cost of Outsourcing Lead Generation

The cost of outsourcing lead generation services varies depending on several factors, such as:

Number of Leads Required

One of the most significant factors that affect the cost of outsourcing lead generation is the number of leads your business requires. The cost of outsourcing typically increases as the company needs more leads because it requires more resources, time, and effort.

To calculate the cost per lead, you need to know the number of leads generated and the amount of money you’ve spent on a particular campaign.

Type of Industry

Some industries require more specialized knowledge and expertise to generate leads effectively. For instance, the healthcare industry could demand a higher level of expertise in medical terminology and regulatory compliance compared to the retail industry. Some require extensive research and outreach to identify and qualify potential leads. This is common to B2B industries and may lead to higher outsourcing costs.

Here is a general overview of the average cost per lead based on the type of industry:

Scope of Services

The more complex the scope of services, the higher the cost is likely to be. For example, if your business needs multiple services, such as lead qualification, lead nurturing, and lead scoring, the cost will be higher compared to a simple lead generation service. Also, if the project requires advanced technology, additional fees may be charged by the service provider.

The Expertise of the Service Provider

Lead generation companies that have expertise in generating leads in your industry or niche may charge higher fees than providers with less expertise. If a customized lead generation campaign tailored to your specific business needs is required, this may also incur additional costs. The service provider’s knowledge of specific marketing channels, such as email marketing and social media marketing, may also influence the fees.

Duration of the campaign

Shorter campaigns could have a higher cost per lead because setting up and optimizing the campaign for the best outcomes takes a lot of time and effort on the part of lead generation service providers. On the other hand, longer campaigns may have a lower cost per lead because the initial set-up costs are spread out over a more extended period. This results in a more cost-effective pricing structure.

The duration of the lead generation campaign should be determined by the business’s goals and budget.

Location of the Service Provider

Depending on the service provider’s location, labor expenses can vary widely. For instance, service providers from countries with lower labor costs could charge less for their services.

Here’s an estimate of the rate per hour in some regions:

  • North America: $50-$150
  • Asia: $20-$50
  • Europe: $40-$100

Note that these are general estimates, and actual costs can vary depending on the specific outsourcing provider, services offered, and other factors.

Average Costs to Outsource Lead Generation

While the cost of outsourcing lead generation services varies widely due to a range of factors, here are some guidelines on the average outsourcing cost for different sizes of businesses.

  • Small Business: $2,000 to $5,000 per month
  • Medium-sized Business: $5,000 to $10,000 per month
  • Large Business: $10,000 per month or more

Should You Outsource Lead Generation or Keep it In-house?

Outsourcing lead gen and keeping it in-house both have their advantages and disadvantages and the choice comes down to a number of factors. Here are some factors to consider:


Outsourcing lead gen can be more cost-effective than hiring an in-house team. If you keep an in-house team for lead generation, you have to invest in employee benefits like insurance, bonuses, and training, and spend on technology.

On the other hand, choosing to outsource lead generation means that you do not have to worry about these expenses, instead, you only pay for the services that you need.

Expertise and Technology

Outsourcing lead generation gives your business access to professionals who have years of experience in generating leads for different businesses. Aside from their experience, outsourcing companies also have up-to-date tools for lead generation. These specialized programs allow lead gen partners to automate and streamline their processes, increasing efficiency and productivity. With the aid of automation solutions, they can reach a larger audience, capture more leads, and manage them effectively.

If you keep it in-house, however, you may not have the same level of access to expertise as outsourcing. To ensure that your in-house staff has the knowledge and skills means that you have to invest in training and development.


In terms of scaling your campaigns, outsourcing lead generation offers you more flexibility to quickly scale up or down based on your business needs.

For instance, if your business needs to create more leads to meet a goal, you can just increase your budget and resources with your lead gen agency. They have the resources needed to manage the increasing workload and be able to deliver the needed results.

On the contrary, if you need to cut back your efforts due to budget constraints or other reasons, you can easily adjust your contract with the outsourcing partner accordingly. You won’t need to be concerned about the expenses and challenges of finding and training new employees to manage the changing demand.


While outsourcing lead generation may give your business control to scale your efforts up or down as needed, you may have less control over the process, quality, and outcomes. Businesses would not have as much visibility into lead generation activities as they would with an internal team, and may not be able to change strategies quickly.

What to Look for in a Lead Gen Partner

Choosing the right lead gen partner is critical to the success of your business. It can either result in getting high-quality leads that turn into customers or wasting time and resources on leads with poor conversion rates. Knowing what to look for in a lead gen partner is important to ensure that the lead generation efforts are successful. Here are some key factors to consider:

Industry Knowledge and Experience

Companies with no prior experience obtaining leads from your industry or particular channel will have little success delivering them to you. They must have a proven track record of lead generation in your industry to deliver results.


Transparency is crucial because it builds trust and guarantees you’re getting value for your investment. Look for a partner that is transparent about their lead generation techniques and processes. When they are open and honest about their procedures, you can collaborate with them by providing feedback and suggestions and making informed decisions to improve lead quality and drive better results.


A cost-effective lead gen partner helps you maximize your return on investment (ROI). By generating leads that are more likely to become paying customers, you can increase your ROI and accelerate the growth of your business. They will also help you better manage your budget and prevent overspending. Choose a partner who offers flexible solution price options that suit your budget.

Quality of Service

The effectiveness of your business’s marketing and sales activities can significantly be affected the quality of service your lead generation partner provides. The quality of leads they generate will directly impact the conversion rates. High-quality leads are more likely to become actual customers, while low-quality leads can reduce the ROI of a lead generation campaign.

Additionally, a lead gen partner that offers high-quality service will also offer excellent customer service.

Recommendations for Outsourcing Lead Generation

Here are some recommendations to help you if you are considering outsourcing lead generation:

  1. Define your goals. Having a clear understanding of your business objectives and goals is essential. You need to understand your target market and what the business wants to achieve through lead generation. What kinds of leads are you looking for? How many leads are needed?
  2. Choose the right outsourcing partner for your business. Go for a lead generation company that has the experience and expertise in your industry and target market. Look for partners that have a proven track record.
  3. Establish a strong working relationship. Building a solid relationship with your outsourcing partner is vital to success. Communicate regularly, share ideas, and provide feedback on the quality of leads generated.
  4. Monitor performance and ROI. Keep an eye on your outsourcing partner’s performance and measure the ROI of your lead generation efforts. This will enable you to assess whether your outsourcing investment delivers the desired results.

By following these best practices, businesses can maximize the success of their outsourced lead generation efforts and achieve their desired results.

Organizations aiming to expand their customer base may find outsourcing lead generation a good choice. They can focus on their core competencies and leave the marketing efforts to the professionals.

It can also be a wise investment for companies looking to reduce their lead generation cost. While the cost of outsourcing can vary depending on the type of industry, the scope of services, and some other factors, an outsourcing partner can offer specialized expertise, industry knowledge, and access to the latest lead generation tools. With these resources, businesses can develop more targeted and effective marketing campaigns, resulting in high-quality leads and increased sales.

And while outsourcing lead generation services offers many advantages, the decision to outsource should be based on the specific needs and goals of the business. It is important to carefully evaluate the costs and benefits of outsourcing lead generation before making a decision.