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You’ve been playing with ChatGPT and Claude. You know AI can do real work. But you’re stuck figuring out how to turn that into actual income.
Lead generation solves that problem. Businesses pay for customers. You use AI to find and deliver those customers. The math works from day one.
This guide shows you exactly how to build a lead gen business using AI, from your first buyer conversation to your first profitable campaign.
Why Lead Generation Works for AI-Powered Businesses
The business model is simple:
Traffic -> Landing Page -> Lead Capture -> Qualification -> Delivery -> Payment
You’re the middleman between people looking for services and businesses offering them.
Here’s why this model is perfect if you’re starting an AI business from scratch:
Low startup cost. You need a landing page, ad budget, and a buyer. AI handles the expensive parts (copy, creative, optimization) that used to require agencies or employees.
Revenue from day one. Unlike SaaS or content sites, you get paid when you deliver a qualified lead. No waiting months for traffic or traction.
Scalable systems. Once a campaign works, you can run it forever. AI helps you test faster and optimize continuously.
Clear skill development. Everything you learn (copywriting, paid ads, conversion optimization) applies to any online business you build later.
Before AI, lead gen companies needed teams of copywriters, media buyers, and developers. Now you can do what they do, faster and cheaper, using Claude and the right workflows.
Choose Your Lead Gen Model
You have four options. Start with the one that matches your current situation, then graduate up as you prove results.
Model 1: Affiliate Lead Gen (Start Here)
Send leads to existing networks and buyers. No relationship-building required.
The process:
- Join an affiliate network with lead offers (MaxBounty, ClickDealer, or vertical-specific networks)
- Drive traffic to their landing pages or yours with redirect
- Get paid per qualified lead
Why start here: You skip the hardest part (finding buyers) and learn the mechanics first. Once you understand what converts and what quality looks like, you have leverage for direct relationships.
Typical payout: $5-50 per lead depending on vertical.
The tradeoff: Lower payouts because the network takes a cut. But for your first 100 leads, that’s fine. You’re buying education.
Model 2: Direct Lead Sales (Graduate Here)
Build relationships directly with businesses who need customers. Higher margins, more control.
The process:
- Find businesses that buy leads (more on this below)
- Negotiate pricing and quality standards
- Build campaigns to generate leads
- Deliver leads directly via email, CRM, or real-time API
- Get paid per lead or appointment
Why this works: Cutting out the network doubles your margin. A lead you sold through an affiliate network for $25 goes for $50+ direct. Same lead, same effort, more profit.
Typical payout: $20-200+ per lead depending on vertical.
The tradeoff: You need to find buyers, manage relationships, and handle disputes. But once you have 3-5 reliable buyers, you’ve built a real business asset.
Model 3: Exclusive Lead Agreements
Sell leads to one buyer in each market. Premium pricing for premium commitment.
The process:
- Partner with one business per geographic area
- Guarantee lead exclusivity (they’re the only ones who get it)
- Generate and deliver leads
- Charge 2-3x standard rates for exclusivity
Why this pays more: A roofing contractor who knows they’re the only one getting the lead will pay $150 instead of $50. They’re not racing against competitors to return the call.
Typical payout: $50-500+ per lead.
The tradeoff: You need volume before anyone will pay exclusive rates. Build this after you’re generating 50+ leads per week in a market.
Model 4: Performance Marketing (Rev Share)
Get paid when leads become customers. Highest upside, highest complexity.
The process:
- Partner with businesses
- Generate leads
- Track through to sale
- Get percentage of closed revenue
Why this is the endgame: A roofer closes a $15,000 job from your lead. At 10% rev share, that’s $1,500 instead of a $100 lead fee.
Typical payout: 10-30% of closed revenue.
The tradeoff: Longer payment cycles, dependent on the buyer’s sales team, requires tracking infrastructure. Don’t start here. Build to it after you have proven quality and trust with a buyer.
Which Model to Start With
| Factor | Affiliate | Direct Sales | Exclusive | Rev Share |
|---|---|---|---|---|
| Startup Difficulty | Easy | Medium | Hard | Hard |
| Per-Lead Payout | Low | Medium | High | Variable |
| Control | Low | Medium | High | High |
| Relationship Depth | None | Medium | High | Very High |
| Scalability | High | High | Limited | Medium |
| Risk Level | Low | Medium | Medium | High |
If you’re starting from zero: Begin with affiliate offers to learn the mechanics, then move to direct sales within 60-90 days. The progression is: learn the game (affiliate) → build relationships (direct) → extract maximum value (exclusive/rev share).
Pick a Vertical That Pays
Some niches pay 10x more than others for the same amount of work. A home services lead might pay $30. A legal lead in the right tort can pay $500+.
The pattern is simple: the higher the customer lifetime value, the more businesses pay per lead.
Lead Values by Vertical
| Vertical | Lead Value | Why It Pays | Good for Beginners? |
|---|---|---|---|
| Home Services | $15-100 | Recurring need, local | Yes |
| Insurance | $20-150 | Commissions on policies | Medium |
| Healthcare | $20-150 | Lifetime patient value | Medium |
| Education | $30-100 | Program enrollment fees | Medium |
| Real Estate | $20-100 | Commission potential | Medium |
| Financial Services | $30-200 | High transaction values | No |
| B2B Software | $50-500 | High contract values | No |
| Legal (PI, Mass Tort) | $50-500+ | High settlement values | No |
If you’re starting out: Home services is the best training ground. Local focus, consistent demand, buyers are easy to find. The lead values aren’t the highest, but you’ll actually close deals and learn the business.
After you have experience: Legal and B2B software have the highest payouts, but they require deeper expertise and longer sales cycles to land buyers.
For the full process on evaluating verticals, see Niche Research with AI.
Use AI to Analyze Your Best Vertical
Before you commit, have Claude analyze which vertical fits your situation. Copy this prompt and fill in your details:
I want to start a lead generation business. Help me select the best vertical.
My situation:
- Starting budget: [AMOUNT - be honest]
- Experience: [NONE/SOME MARKETING/EXPERIENCED MARKETER]
- Time available: [HOURS PER WEEK]
- Geographic preference: [LOCAL CITY/STATE/NATIONAL]
Analyze 3 verticals that fit my constraints. For each one, tell me:
1. What I'd be selling (the lead type and typical buyer)
2. Realistic per-lead payout for a beginner
3. How hard it is to find buyers
4. Estimated cost per lead from paid traffic
5. Main compliance requirements I need to know
6. Why this does or doesn't fit my situation
Then give me your top recommendation and tell me exactly what to do first.
This analysis saves you from picking a vertical that sounds profitable but doesn’t match your resources. I’ve seen people burn through $5,000 trying to crack legal lead gen when they should have started with home services.
For more business research prompts, check skills.sh.
Home Services: The Best Starter Vertical
Here’s a concrete breakdown so you see how to analyze any vertical.
Home Services Lead Values:
| Service | Lead Value | Demand Pattern | Beginner Friendly? |
|---|---|---|---|
| Roofing | $30-150 | Seasonal (storms, spring) | Yes |
| HVAC | $25-75 | Seasonal peaks | Yes |
| Plumbing | $20-60 | Year-round | Yes |
| Windows | $20-80 | Spring-Fall | Medium |
| Solar | $50-200 | Year-round | No (complex) |
| Remodeling | $30-100 | Year-round | Medium |
How to find buyers in home services:
- Search Google for “[city] [service] contractor” and look at who’s running ads. These companies already spend on marketing and understand lead value.
- Call them directly. “I generate [service] leads in [city]. Are you currently buying leads, or would you test a few to see quality?”
- LinkedIn outreach to business owners with 10-50 employees (big enough to handle leads, small enough to need them).
The contractors running Google Ads are your best prospects. They understand marketing. They’re already spending money. They just need more leads than they can generate themselves.
Find Buyers Before You Generate a Single Lead
This is where most beginners get it backwards. They build campaigns first, then scramble to find buyers.
Don’t do that. Line up your buyers first. Understand exactly what they’ll pay for. Then build campaigns to deliver it.
Use AI to Build Your Buyer List
This prompt generates a targeted list of potential buyers and outreach strategy:
I want to generate [SERVICE TYPE] leads in [CITY/STATE].
Help me find and approach lead buyers:
1. WHO BUYS THESE LEADS
- What types of businesses?
- What size companies (employees, revenue)?
- What signals show they have budget for leads?
2. WHERE TO FIND THEM
- Specific search strings for Google
- LinkedIn search filters
- Industry directories or associations
- Signs they're already buying leads
3. HOW TO APPROACH THEM
- Cold call script (30 seconds max)
- Email template that gets responses
- What to offer in the first conversation
- How to structure a test period
4. WHAT TO NEGOTIATE
- Starting price range for my vertical
- Volume commitments
- Return/dispute policies
- Payment terms
Give me a list of 10 specific companies I should contact first, with reasoning.
The Outreach Script That Works
Direct, no fluff. The free test batch removes all their risk.
Email:
Subject: [Service] leads in [City] - quick question
Hi [Name],
I generate [service] leads in [area] and noticed you're
one of the top [service] companies in the market.
Quick question: are you currently buying leads?
I'd like to send you 5 leads to test - no cost, no commitment.
If they convert, we can talk terms.
Worth a quick call?
[Your name]
Phone (if email doesn’t get response):
“Hi [Name], I’m calling because I generate [service] leads in [city] and I’m looking for one more contractor to work with. I noticed you’re running Google Ads so you understand lead value. Can I send you 5 free leads this week to test quality? If they work, we talk. If not, no hard feelings.”
The free test batch is everything. Once they close a deal from your leads, they’re hooked.
Qualify Your Buyers (Yes, You Interview Them)
Not all buyers are worth your leads. Some will dispute everything, pay late, or blame you for their bad sales process.
Before committing to a buyer, verify:
- Verified business (licensed, insured, has reviews)
- Already spending on marketing (Google Ads is a good signal)
- Responds to leads quickly (ask them: “How fast do you call back?”)
- Has a sales process (not just the owner answering calls between jobs)
- Will provide conversion feedback (you need this to optimize)
- Agrees to payment terms in writing
Walk away if they:
- Won’t sign a simple lead purchase agreement
- Want to pay “when they close” (you’ll never see money)
- Take days to follow up on leads
- Have no reviews or obvious quality issues
Your leads have value. Don’t give them to buyers who will waste them.
Build Your Lead Capture System
You’ve got buyers lined up. Now build the machine that produces leads.
The Landing Page Structure
Your landing page has one job: get the form filled out. Everything else is noise.
ABOVE THE FOLD (what they see first):
├── Headline (problem or outcome focused)
├── Subheadline (what they get)
├── Trust signals (reviews, badges)
└── FORM (the conversion point)
BELOW THE FOLD (for skeptics who scroll):
├── Benefits (3-5 bullets)
├── Social proof (testimonials)
├── FAQ (handle objections)
└── Second form or CTA
The form is everything. Fewer fields = more leads, but lower quality. More fields = fewer leads, but higher quality. Start with: Name, Phone, Email, Zip Code, and one qualifying question specific to your vertical.
For the complete walkthrough on building pages that convert, see AI Landing Page Creation.
AI Prompt for Landing Page Copy
Use this to generate your first landing page. You’ll still need to customize, but it gets you 80% there:
Create landing page copy for [SERVICE] leads in [CITY/REGION].
The visitor is someone who needs [SERVICE] and is looking for quotes/options.
The offer is: [FREE QUOTE / FREE CONSULTATION / FREE ESTIMATE]
Generate:
1. HEADLINES (5 options to test)
Under 10 words each. Focus on the outcome they want.
2. SUBHEADLINE
One sentence that clarifies what happens when they submit.
3. FORM FIELDS
List the exact fields in order. Tell me which are required vs optional.
Balance: enough to qualify, not so many they abandon.
4. BENEFIT BULLETS (4)
Specific reasons to request a quote now.
5. FAQ (4 questions)
Address the objections that stop people from submitting.
6. THANK YOU PAGE
What to say after they submit. Set expectations for next contact.
Write like a human. No marketing jargon. Short sentences.
Where to Get Traffic
Your traffic source depends on how people find your service.
| Source | When to Use | Cost | Lead Quality |
|---|---|---|---|
| Google Ads | People search for the service | $$$ | High |
| Facebook/IG | People don’t search actively | $$ | Medium |
| Bing | Older demographics, lower cost | $$ | Medium-High |
| Native Ads | Scale after proving the funnel | $ | Medium-Low |
Start with Google Ads if people actively search for your service. “Plumber near me,” “roof repair quote,” “car accident lawyer” - these searches show intent. Higher cost per click, but higher conversion rates.
Start with Facebook if people don’t actively search. Solar, home improvement, debt relief, insurance - these need awareness-stage targeting. Lower cost per click, but you’re interrupting, not answering a question.
Don’t start with native ads. The CPL looks attractive, but lead quality is lower. Use native to scale after you’ve proven your funnel converts with Google or Facebook traffic.
For the full playbooks:
AI Prompt for Traffic Strategy
Build a traffic strategy for [SERVICE] leads in [LOCATION].
My budget: $[AMOUNT]/month
My target CPL: $[AMOUNT]
Volume goal: [NUMBER] leads/month
Tell me:
1. Which traffic source to start with and why
2. Exact campaign structure (campaigns, ad groups, targeting)
3. 5 keyword themes or audience segments to test
4. 3 ad copy angles to test
5. How to know when something is working vs. failing
6. When and how to scale what's working
Be specific. I want to set this up today.
Qualify Leads Before Delivery
This is where most lead gen businesses fail. They generate leads, but the leads are garbage. The buyer stops buying. The business dies.
Quality determines whether buyers keep buying. Period.
Qualification Methods (Choose Based on Lead Value)
| Method | Cost | Quality Impact | Use When |
|---|---|---|---|
| Form Fields | Free | Medium | Lead value under $50 |
| Email Verification | ~$0.01/lead | Low | Always (catches fake emails) |
| SMS Verification | ~$0.05/lead | Medium | Lead value $30-100 |
| Phone Verification | ~$2-5/lead | High | Lead value over $100 |
For leads under $50: Use form fields to qualify (project type, timeline, budget range) and email verification to catch fakes.
For leads over $100: Phone verification is worth it. A 2-minute call confirms the lead is real and serious before you deliver.
AI Prompt for Qualification System
Design a lead qualification system for [SERVICE] leads worth $[AMOUNT] each.
My buyer needs leads that:
- [GEOGRAPHIC REQUIREMENT]
- [BUDGET/PROJECT SIZE REQUIREMENT]
- [TIMELINE REQUIREMENT]
Tell me:
1. FORM FIELDS
What questions qualify without killing conversion?
What answers should disqualify?
2. POST-SUBMIT AUTOMATION
What happens immediately after they submit?
How do I verify they're real?
3. PHONE SCRIPT (if applicable)
30-second script to verify and qualify.
What questions confirm they're a good lead?
4. DELIVERY FORMAT
What info does my buyer need?
How should I send it (email, API, CRM)?
Deliver Fast (Speed Kills Competitors)
Research shows contacting a lead within 5 minutes makes them 21x more likely to convert.
Delivery options:
| Method | Speed | Complexity | Use When |
|---|---|---|---|
| 1-5 min | Easy | Starting out, low volume | |
| SMS | Instant | Easy | High-urgency services |
| Zapier to CRM | Near real-time | Medium | Buyer uses a CRM |
| API/Webhook | Real-time | Technical | High volume, serious buyers |
Start with email + SMS. When the lead submits, your buyer gets an email and text with the lead details. Takes 30 minutes to set up with Zapier or Make.com.
Graduate to CRM integration once you’re doing 20+ leads per week with a single buyer. They’ll want leads pushed directly into their system.
Know Your Numbers (Or Lose Money)
Lead gen math is simple. But most people don’t track it properly and wonder why they’re not profitable.
The Numbers That Matter
| Metric | Formula | What to Aim For |
|---|---|---|
| CPL | Ad spend ÷ leads generated | Depends on vertical |
| Lead Price | What buyer pays you | At least 2x your CPL |
| Return Rate | Disputed leads ÷ total leads | Under 10% |
| Margin | (Lead price - CPL - returns) ÷ lead price | 40-60% |
The rule: Your lead price must be at least 2x your cost per lead.
If you’re paying $25 to generate a lead and selling it for $30, you’re playing with fire. One bad week of higher CPL or increased returns and you’re underwater.
Example math:
- CPL: $20
- Lead price: $50
- Returns: 10% ($5 per lead average)
- Net per lead: $50 - $20 - $5 = $25
- Margin: 50%
That 50% margin gives you room to survive when CPL spikes or a buyer disputes a batch of leads.
AI Prompt for Financial Modeling
Before you start spending, model the economics:
Build a financial model for a [SERVICE] lead gen business.
My inputs:
- Lead price I negotiated: $[AMOUNT]
- Estimated CPL from research: $[AMOUNT]
- Starting monthly ad budget: $[AMOUNT]
- Expected return rate: [%]
Show me:
1. UNIT ECONOMICS
Per-lead profit after all costs and returns.
2. MONTHLY PROJECTIONS
At my starting budget, what's realistic for revenue and profit?
Show conservative, expected, and optimistic scenarios.
3. BREAK-EVEN
How many leads do I need to break even?
What ad spend does that require?
4. SCALING CHECK
If I 3x my budget, does the math still work?
What typically breaks at scale?
Give me a simple spreadsheet structure to track this weekly.
Once you’re generating leads, see AI Campaign Optimization for the ongoing optimization playbook.
What Realistic Numbers Look Like
Here’s a sample P&L for a home services lead gen business in months 1-3:
| Line Item | Month 1 | Month 2 | Month 3 |
|---|---|---|---|
| Revenue | |||
| Leads delivered | 100 | 150 | 200 |
| Price per lead | $50 | $50 | $50 |
| Gross revenue | $5,000 | $7,500 | $10,000 |
| Returns (10%) | -$500 | -$750 | -$1,000 |
| Net Revenue | $4,500 | $6,750 | $9,000 |
| Costs | |||
| Ad spend | $2,500 | $3,500 | $4,500 |
| Tools (landing page, forms, email) | $100 | $100 | $100 |
| Verification costs | $50 | $75 | $100 |
| Total Costs | $2,650 | $3,675 | $4,700 |
| Net Profit | $1,850 | $3,075 | $4,300 |
| Margin | 41% | 46% | 48% |
Notice the margin improves as volume increases. Fixed costs (tools, landing pages) stay flat while revenue scales. That’s the beauty of lead gen: once the machine works, more money in means more money out.
Scale What’s Working
Once you have a profitable campaign, you have three scaling options. Most people only think about the first one.
1. Horizontal scaling (more volume, same game):
- Add more buyers in same vertical
- Expand to new geographic markets
- Test additional traffic sources
2. Vertical scaling (more revenue per lead):
- Improve quality, raise prices
- Negotiate exclusive arrangements
- Move toward rev share deals
3. Diversification (new games):
- Add new verticals
- Try new models (calls, appointments)
- Build an agency offering around what you’ve learned
If you’re just getting profitable: Focus on horizontal scaling first. Get more buyers. Expand geography. Add traffic sources. Don’t get fancy until you’re doing 200+ leads per month.
For the tactical playbook on scaling campaigns without killing your margins, see AI Scaling Campaigns.
AI Prompt for Scaling Plan
Help me scale my lead gen business.
Current state:
- Vertical: [SERVICE]
- Monthly leads: [NUMBER]
- Monthly revenue: $[AMOUNT]
- Buyer count: [NUMBER]
- Traffic sources: [LIST]
- CPL: $[AMOUNT]
- Margin: [%]
Goal: $[TARGET] monthly revenue
Tell me:
1. WHAT TO DO NEXT
Given my current state, what's the highest-leverage move?
More buyers? New markets? New traffic sources? Better pricing?
2. SEQUENCE
What order should I tackle growth initiatives?
What to do this month, next month, quarter 3?
3. WHAT BREAKS AT SCALE
What systems or processes won't work at 2x, 5x, 10x volume?
What should I fix now vs. later?
4. RISKS
What could kill this business? How do I protect against it?
Don’t Skip Compliance (Seriously)
Lead generation has real legal requirements. Ignore them and you’ll get sued, fined, or shut down. I’ve seen it happen.
What You Need to Know
| Regulation | What It Covers | Penalty |
|---|---|---|
| TCPA | Phone calls/texts | $500-1,500 per violation |
| CAN-SPAM | Email marketing | $46,517 per email |
| CCPA/State Privacy | Data collection | Fines + lawsuits |
| FTC Act | Deceptive practices | Fines + injunctions |
TCPA is the big one. If you’re collecting phone numbers and your buyers are calling or texting those leads, you need proper consent documentation on your form.
The FTC has gotten aggressive. In 2024, they settled with a mortgage lead generator for $7.5 million over fake lead claims.
Compliance Checklist (Do This From Day One)
- Clear opt-in consent checkbox on your form (not pre-checked)
- Privacy policy linked on all landing pages
- TCPA disclaimer if collecting phone numbers: “By submitting, you consent to be contacted by [companies] via phone/text”
- Records of consent for every lead (timestamp, IP, form submission)
- Lead buyer agreement documenting who’s responsible for TCPA compliance
- Ad platform policies followed (Google, Facebook each have lead gen rules)
If you’re doing serious volume (500+ leads/month), get a lawyer familiar with lead generation to review your setup.
Your First 60 Days (The Actual Plan)
Here’s the timeline to go from zero to generating leads. This assumes you have a few hours a day and $1,000-2,000 to invest in testing.
Days 1-15: Line Up Buyers First
Goal: Get at least one buyer who’s agreed to test terms.
- Use the AI prompt above to select your vertical
- Build a list of 20+ potential buyers
- Send outreach to 10 buyers
- Secure 1-3 buyers who agree to test
- Confirm lead specs (what qualifies) and pricing
Don’t move forward without a buyer. Building campaigns before you have someone to buy the leads is the #1 beginner mistake.
Days 16-30: Build the Machine
Goal: Generate your first leads.
- Create landing page (use the AI prompt above)
- Set up tracking (Google Analytics, form submissions)
- Build initial ad campaigns
- Start with $500-1,000 test budget
- Deliver first batch of test leads to buyer
Keep the budget small. You’re buying data, not volume. The goal is to learn what converts.
Days 31-45: Fix What’s Broken
Goal: Get CPL to target range.
- Analyze test performance (which ads, which audiences)
- Get buyer feedback on lead quality
- Optimize landing page based on data
- Refine ad targeting
- Keep testing until CPL hits target
This is where most people quit. First campaigns rarely hit target CPL. You have to test and optimize your way there.
Days 46-60: Scale What Works
Goal: Prove the model is repeatable.
- Increase budget 2x on winning campaigns
- Add 1-2 additional buyers
- Expand geographic targeting
- Document your processes (you’ll forget what worked)
- Set monthly targets for leads and revenue
Only scale what’s profitable. Kill what’s not. Double down on winners.
What to Do Right Now
You’ve read enough. Lead gen is execution. The money comes from doing it.
Your first action: Open Claude and run the vertical selection prompt from this guide. Fill in your actual constraints. Get a recommendation based on your situation.
Then this week:
- Build a list of 10 potential buyers in that vertical
- Send outreach to 5 of them
- Get one to agree to a test
That’s it. Don’t build a landing page until you have a buyer. Don’t run ads until you have a landing page. Don’t scale until you’re profitable.
Related guides for the next steps:
Planning:
- Niche Research with AI - Deeper vertical analysis
- Pay Per Call with AI - Phone leads pay more
Building:
- AI Landing Page Creation - Build pages that convert
- AI Ad Copywriting - Write ads that work
Traffic:
- Google Ads with AI - High-intent search traffic
- Facebook Ads with AI - Audience-based targeting
Optimization:
- AI Campaign Optimization - Lower your CPL over time
Businesses will always need customers. They will always pay for them.
AI gives you the leverage to compete with lead gen companies that have been doing this for 20 years. You can research faster, build landing pages without developers, write creative at scale, and optimize campaigns using real data.
The path is clear: Pick a vertical. Find a buyer. Build a campaign. Generate leads.
Start today.