KJ has been in the AM industry for many years. He joined STM in 2012 and has shared valuable knowledge with members - for example see this post where he shared a powerful sponsored content strategy and this post where he revealed some next-level tricks he was using to find buyers for his leads.
KJ also operates his very popular affiliate marketing blog at: https://www.kjrocker.com/kj-rocker-blog/
A couple of years ago we finally met up for coffee during AWA Bangkok. We didn't just talk about AM. He shared his personal journey which inspired me to no end. Here's a guy that started with no seed money and still made it big - the rest of us really have no excuse. You can see a glimpse of his story here: https://www.kjrocker.com/about-me/
Then a few days ago when I was asking him to once again contribute to the annual "What's Working in Affiliate Marketing" report (which BTW is coming out REAL soon!), we started talking about how he was capturing leads and selling them to insurance companies - and I thought, "why don't we do an interview and post it in the forum?"
His reply - being the awesome human being that he is:

We ended up spending 2 hours type-chatting - below are our chat records, presented almost completely in its original glory aside from mild editing and formatting to preserve the original flavor. 
For those of us that are promoting lead gen CPA offers, this interview may inspire some to change your direction - to separate yourselves from the masses, avoid the heavy competition, and pay more for better/more traffic because using this new model you can stand to make 50% more than with CPA offers.
This post can transform your life if you'd take action.
I tried to ask questions that ranged from noob to vet for everyone's benefit. If you still have questions please feel free to ask them below!
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Amy: First off: Do you look for buyers first or sellers first? I've always wondered about that. To avoid running into the problem of either a)having leads but no buyers yet to sell to, or b)having buyers but no leads to sell to them yet.
KJ: Good question to start the conversation!
Ok so to avoid these problems I do my own research: Call companies and brokers, see if they are buying leads, and if so how much and what are their expectations, what information they need.
And then I do research on the customer side of things and see if there is volume or opportunity, and whether we can generate traffic.
Once that is done the next step is to build the funnel and have everything ready.
And then onboard buyers, show them how it works, how we control quality, why we can provide them better leads.
Amy: Great thank you! That answered several questions I had. Would you mind going into your basic technical setup? I know there are SaaS solutions that will capture and distribute leads but they're pretty expensive.
KJ: This is a very commonly asked question. So in a basic setup we will need: Tracker, lead distribution software like Leadbyte (is the perfect solution IMO) or Leadprosper.io (basic but very cheap). Leadbyte basic subscription costs £250 per month and Leadprosper is even cheaper - these two are used to collect and distribute leads amongst the buyers.
You can decide who to send leads to etc. using these distribution setups, for example you can send leads based on cap, payout, time of day etc. on ping/post basis (i.e. you send pings in real time to sell the lead to the highest bidder).
For the rest, you may need an autoresponder like ActiveCampaign or Mailgun to send text / emails. This is all you need on the backend.
On front end of course you need websites etc. to integrate API with your lead management system etc.
These lead distribution systems are integrated with the buyers' CRM so you don't need to do anything manually.
Amy: So regarding pricing do you set a minimum bid? Or just sell at highest bid?
KJ: Selling price depends on you and your arrangements with the buyers, and how many you want to sell. I usually have fixed prices and sell based on cap. Also I have different lead tiers and all of them have different rates.
Amy: So you don't really use the "sell to the highest bidder" feature much then!
KJ: No because not every buyer has ping and post enabled CRM. And I like fixed rate better.
Amy: Makes sense! KJ do you sell each lead to one buyer or multiple buyers?
I guess it would depend on your funnel as well. For example those "fill out this car insurance questionnaire to get quotes from multiple companies" websites are selling to multiple buyers.
KJ: I tried that in past - when there were individual insurance brokers and they couldn't pay the price for exclusive leads. But that didn't work well for the customers as they would have 3 insurance sellers calling them - so that wasn't a good idea in terms of user experience.
Now I only sell exclusive leads, and brokers I work with usually compare all the insurance companies for customers anyway.
Amy: When you say "brokers usually compare all the insurance companies for customers anyway" you mean they resell to other insurance companies? Or?
KJ: By "broker", I mean my buyer who is usually an insurance brokerage business with a call-center setup, and are writing insurance for the consumers so they are authorised to write insurance on behalf of insurance companies.
So they don't resell, but they compare all companies and choose the one that works best for the customer, and then just sell them that package.
Amy: Nice to see a system that works out for everyone involved!
KJ do you have tips on how to create a good lead gen funnel? Both to ensure good lead quality and to maximize lead capture rate.
KJ: Make sure it has plenty of social proof. Usually quiz pages work best - instead of asking all the questions at once, ask bit by bit so you don't bore your users and turn them away. Don't ask questions you don't need yet - make sure you ask enough questions to qualify a lead.
Using advertorials really helps you boost the lead quality.
Work with your buyers and ask them for regular feedback to ensure quality, and follow up with customers and get their opinion/feedback and use that to improve your funnel.
Try using new technologies like bots, chat bots etc. to make things easier for the users.
Learn about usage of APIs - this is very important! Understand the concept of APIs and how to use them. This helps a lot!
Amy: I bet! Can't do lead gen without knowing about APIs - with all the automation involved.
Lead capture funnels can be complicated to code - sometimes there is logic - for example if the user answers "yes" to question 1, then don't show them question 2. Do you do this yourself or hire a developer/programmer?
KJ: Having a good developer really helps. I am not a good coder at all so that is all done by my developer.
I would like to add another thing here: Usually people try to use done-for-you softwares and platforms for the funnels, but in my opinion they come with lots of issues and are never a good solution (slow loading speeds, limitations & restrictions and also high costs). So custom funnels always work best for me. Now we have in-house pre-made templates which we usually use.
A good programmer can easily work with logics etc., it's not a big issue.
Hiring helps communities as well, for example I tend to hire more female team members from Pakistan as they don't have many job opportunities. So if I can give someone the opportunity to work remotely from the safety of their own home why not.
Amy: That makes so much sense. You truly have a heart of gold - it's people like you that make the world a good place.
KJ: Thank you.
Amy: Next question: Do you have tips on how to find lead buyers, and how to onboard them? Do you send them a sample of leads first and then negotiate pricing?
KJ: For finding the lead buyers there are 2 ways:
1)Paid advertising. Usually google does the job for me - it costs almost £25 on google to find a buyer, with super specific keywords. Linkedin can also be used but that's a little more expensive.
2)Organic outreach. Linkedin is a great source too, you just want to find a few directors / marketing managers and reach out to them, and from their linkedin activity feeds find out who they are interacting with. Also, I would contact the social media page of the company to ask for their marketing manager's contact details, then use their social media team as a reference ("I got your details from your social media team") This way it doesn't sound like I'm cold calling them.
The most important aspect is having a media kit or a sales presentation where you have a complete proposal written. On your proposal make sure you have all the terms clearly stated. I usually don't charge for hoax details, or if the user says they didn't apply for life insurance. But for any other issues whether the user buys the service or not we charge for the lead. Also charge for all your leads in advance - no ads on Monday if no payment in bank by Friday.
I usually arrange a zoom meeting, to first show them my proposal, and then show them the funnel. Walk them through how everything works etc. - how we ensure quality, how we verify user details (phone numbers etc.), our terms etc.
NO FREE LEADS - this really spoils the buyers! You don't want them to get used to it. Give them a bit of discount for the trial but never give away leads for free.
About pricing, there are many ways this can be done, but I use tiers.
1)Verified Leads - we verify phone numbers via API whilst user enters their details.
2)Pin-Verified Leads - once user signs up we send them a pin code which they have to enter on the lead gen page to submit the lead.
3)Hot Transfers - we call the lead to verify their details on the phone, and if they say "yes I want insurance" we would then transfer the call to the buyer.
With every tier, the lead price increases, usually hot key transfers are 2X the normal lead cost.
About pricing: In our initial research we see how much other companies are charging and set our pricing based on that.
Amy: That's a lot of good valuable details! And it leads perfectly to my next question: Do you sign an agreement of some sort with buyers? If so what are some of the terms that HAVE to be in such a document - in addition to the ones you already mentioned above? (I know neither of us are lawyers so this won't be legal advice for sure - just casual sharing of opinions here.)
KJ: Yes there are terms - for example payment terms, rejection criteria (conditions for when you won't charge for a lead). Compliance issues, data protection related terms (e.g. who is responsible in case of data protection related issues), exclusivity (you can also bound buyers to buy only from you or through you in some cases).
Another important part of the agreement is the time frame for lead returns. We usually give 7 days for the buyers to return leads - after 7 days we are not responsible if a lead is not valid.
And also feedback reports, which should again be sent back within 7 days.
Amy: Right - if they don't contact the lead right away and it becomes cold, it shouldn't be your responsibility. But do you do anything with these "return leads" then? Or would they just be garbage at that point?
KJ: If they don't contact the lead right away it's not our problem, we still charge them. Let's say if a user doesn't pick up the phone or says they already bought insurance etc. when the buyer calls, we still charge for the lead. We usually recommend for buyers to contact a lead within minutes to minimize these issues.
Also there is a 10% cap on returns as well - I won't accept over 10% in return leads unless there is an issue from our side.
Also these leads can still be sold to other buyers too, usually % on sale.
Amy: Very nice and efficient! Nothing gets wasted, and everything's fair.
And how do you avoid duplicate leads?
KJ: That is all managed by the lead distribution systems I mentioned above - hoax details, wrong phone numbers, wrong details - everything is filtered through lead distribution software. We do our best to only send valid leads by filtering out bad leads so they don't get send out.
Amy: What in your opinion are some of the most lucrative verticals for lead gen right now?
KJ:
-Finance is a hot niche
-Solar is really taking off in Europe because of the energy crisis
-Business financing
-Debt ---> this one is really taking off January this year
-R&D tax credits
-Home improvement
-Compensation & claims niches
-Refinance
-Loans mortgage
-Private medical insurance (specially in UK as NHS has long waiting lists people are looking more towards private insurance)
-Wealth management
-Tax Rebates is also a very good niche
Honestly there are many opportunities starting from local level to nationwide, there are many niches one can dive into.
Amy: There are some not-very-typical verticals in there - lots of opportunities it sounds like!
KJ: Another thing is lead gen can be profitable in every geo, not just tier 1. For example I know in countries like Pakistan & India - which we usually don't consider - Real Estate is a great niche to look into.
Amy: That's gold! The best trick to avoiding competition and saturation. Pakistan and India traffic is so cheap - but it's so hard to convert for many affiliate offers.
KJ: Yes but the reward can be big too, especially when it comes to niches like real estate, immigration, construction etc.
Amy: Absolutely! OK - so we've covered technical setup and the buyers' side of things. Last BIG topic: How to actually generate the leads.
KJ: When It comes to generating leads I see many people using Facebook. Personally for me that has been a very unreliable platform in terms of quality, and also because they are very difficult to deal with due to account issues etc. They take ages to restore accounts. So my best traffic sources have been google and native along with a few push notification networks that send quality traffic.
In terms of organic traffic, PR and media publishing really helps. A good PR company can help you drive good volumes.
Amy: I'm so excited for STM members - I bet this interview will change a few lives, if people take action on all this. There are so many opportunities here - there's practically no excuse not to get started. And this opportunity isn't time-sensitive - it's practically ever-green. Because many industries need leads and always will.
Any advice on ad creatives? Images/videos/angles?
KJ: You have to keep in mind compliance guidelines, and your creatives can't be misleading. Also I noticed customer-centric angles work best - for example "KJ got his $200k life insurance at $10/month when he was 32 and saved $5 monthly blah blah". Also you want to use casual creatives - not too professional yet not too aggressive.
Customer stories work great. Sometimes I just use customer reviews (offer them a gift card etc. for a text/video review) and get their permission to use them in ads. That works well.
Normal affiliate style, but done according to compliance guidelines, works best.
Unlike for affiliate offers, you can't run anything you want, as you can be held liable for what you run to promote your funnel.
For affiliates I would like to also mention that selling leads direct is different, as you have to really focus on the quality instead of conversions. That sometimes bothers affiliates but it's something you have to understand. You need to get away from the affiliate mindset. You can't just mislead people.
Not saying everyone does it, but many affiliates are used to using aggressive creatives - you have to learn to be less aggressive with creatives.
Amy: The compliance guidelines - you're referring to the law and also the buyers' terms of service?
KJ: Both, but mostly legal requirements. If you don't follow those you may have issues finding buyers, or issues with the buyers as they have to ensure all the leads they buy are sourced through suppliers who follow the guidelines (usually your buyers can help you stay compliant by providing guidance).
Also I would like to mention for example google in the UK requires you to have authorization before you are allowed to advertise with them. In this case you can either get authorization yourself or your buyers can sign you off with their authorization.
Same is coming soon to facebook:
https://support.google.com/adspolicy...10770884?hl=en
Amy: It's one more hoop to jump through, but that means not everyone and their dog can run.
KJ: Yes for promoting certain niches you will have to get verified first. That is the biggest opportunity. Competition is reduced significantly.
Amy: I wonder if they would authorize affiliates. If not - then that would be one more reason to collect your own leads and sell directly to buyers.
KJ: It's possible, but would depend on whether the network would be willing to take responsibility for their affiliates. Because that makes them legally liable for what affiliates run.
Amy: I remember you saying how selling leads directly to buyers has increased your profit margin by 50%. And you've just mentioned the possibility to getting authorized by google to run ads in certain niches. Can you think of any other advantage you're enjoying by selling leads direct, vs. running affiliate lead gen offers?
KJ: Yes - building your own mailing list, collecting your own data, building audiences across multiple advertising networks, being able to upload conversion data directly on ad networks and generate look-alike audiences, having more control over pricing I sell leads at - and above all, freedom to create new pages and chat bots based on traffic source.
No frequent bans as compared to affiliate offers, as domains are not blacklisted or marked as spam.
Offline marketing opportunities, PR marketing, possibility of selling funnels as a business.
Also you have access to all the data right in front of you: Buyer feedback, lead volumes, lead quality reports etc. - so you can act quickly to fix things.
Amy: Oh wow! We can technically chat for another 2 hours just to elaborate on these topics - but let's see what questions forum members will ask. If you wouldn't mind answering their questions that is!
But for now I'll just ask this: Can you provide more details on "freedom to create new pages and chat bots based on traffic source"?
KJ: Sure! For example I like to create lead pages etc. based on a traffic source. For FB I may have an FB chat bot, for whatsapp I may have a whatsapp chat bot. And different kinds of landing pages for native vs. google traffic. It gives us the freedom to make the most out of our traffic and customize things the way users want, instead of waiting for the advertiser to make changes for us.
Amy: So the conclusion here is that the advantages are worth ALL the extra headaches correct?
KJ: That is correct!
Amy: I think I've asked all my questions! Don't know how to thank you KJ - that's a LOT of information and it looks like you didn't hold anything back! I can't wait to edit this and share it in the forum!
KJ: No problem and it was my pleasure Amy. Love sharing what I know as these are the communities I learnt from.
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Lastly: Don't forget to check out KJ's blog, where he shares tips on lead gen and so much more! https://www.kjrocker.com/kj-rocker-blog/
That's all for now! If you'd take the above information and run with it, do some testing of your own, you too could make this work!
If you have further questions, please post them below, and I'll see if I could get some answers. 
Amy
Thank You For Interviewing me Amy and taking time out of your busy schedule for me, As always I don't think I can ever pay back all the kindness and love I got from affiliate communities so its always pleasure to share what I know with everyone and if that helps someone earn a living that's the best thing one can do 
Cool interview bro, I am from your adjacent country India. And i remember seeing your interview in urdu(few years ago) where you had talked about your background and stuff. And i found it quite inspirational.
There are very few successful media buyers in Asian community.
And by the way, i am the same dude you were talking to on
Nice interview, thank you bro 
There is a ton of great insights in this interview! Thanks for sharing your knowledge KJ and thanks Amy for putting this together.
Now let me re-read it again, I'm sure I've missed some juicy bits 
Thanks alot for the interview.
In all the years as an affiliate I thought several times myself about selling leads directly.
This thread gives me definitely some food for thought.
I can also imagine that once you know the real value of a lead you will never go back to running leadgens as an affiliate.
What I like is "So my best traffic sources have been google and native along with a few push notification networks that send quality traffic."
Maybe I should really give it a try to see how it works on Push traffic, then I could just use my normal trafficsources without learning new ones.
TikTok is also getting lots of attention lately, did you test TT for your campaigns as well?
Just in case I want to start to sell leads myself, can you give a rough overview about the whole process to get started?
For example what´s needed for software?
You already mentioned Leadbyte and Leadprosper but is there additional software needed to verify phone numbers and such stuff?
Or is it all done by Leadbyte and Leadprosper as well?
I know that you said "That is all managed by the lead distribution systems I mentioned above - hoax details, wrong phone numbers, wrong details - everything is filtered through lead distribution software." but I just want to make sure.
If these systems take care of such things as well than the whole backend setup you need is basically just a server, a tracker and the lead distribution software?
About the legal requirements, do you have a tip where to get information about it?
Because as you said, as an affiliate you can run so much more and here you are responsible for the whole funnel and you will be hold accountable for everything that happens there.
Also what would you say how long it will take when I want to start?
First, thanks alot for your reply.


@kjrocker I sent you a DM... not sure if it actually sent as it does not show up in my sent folder but sometimes STM is a bit buggy with DM's
Flippa approached a couple of times with 3x my avg annual site revenue estimate on their customers behalf.Btw if anyone is attending Affiliate World Dubai I will be there if you guys wanna catchup PM me to arrange a meeting 
Thanks so much @kjrocker and @vortex for this guide.
Here are a few of my questions:
Niches:
- I see mostly BtC in your list. Have you tried BtB, like business loans, corp insurance... Any opinion on that?
- Are there niches you would recommend to people willing to try selling leads direct (assuming they have experience in AM). Or on the contrary, niches you think are too competitive / saturated that should be avoided at the beginning?
Clients:
- are you focusing on brokers? or do you also go direct with some clients such as large insurances? Which one will pay more? I would assume that is the final client, but after thinking about it, a broker may have more options and a higher probability to sell something...
- what minimum amount of leads do you need for a client to be worth the time spent on campaign, building funnel... ? what amount (of leads or revenue) do you usually start with when doing first test with a client?
- what about clients willing to pay a % of their revenues if they convert? Have you tried that vs fixed price? I am asking because on the real estate market, it seems more common, at least in Chile where i am based. Yet not everyone take it seriously, and I recently had people not even calling the lead...
Landings:
- chatbot: are you talking about landing that looks like a chat. I see that a lot with US loan brokers at the moment (this one from LendingTree for ex: https://www.lendingtree.com/forms/pe...umquat/pl_2022). Or using the whatsapp API (for example) to have people interact through whatsapp by replying to questions.
I had other questions about landings, but your video about advertorials replied to them, so I will put the link here for anyone interested:
https://www.kjrocker.com/landing-pag...sing-networks/
A few random questions:
- Any opinion on Bing vs Google Ads?
- You mention building your own mailing list, and using autoresponders. If you are selling all your leads exclusively, what are you using the autoresponders for? Do you nuture the leads? Do you push extra AM offers after a while, not directly competing but somehow related (home insurance for real estate leads for example)?
- About selling / Flippa: I usually see a 3x multiple when people sell established sites with organic traffic. Do you get offers for your funnels (campaigns + funnel + final clients) at that valuation when all the traffic is paid?
I have to go through your blog. By the way, I registered for the free landings, but your Google Drive landing directory is empty. [EDIT. this is fixed]
KJ may still be traveling - we talked while in Dubai. He'll likely log in when he finds some time after returning home. 
Those are some really great questions @jeremie!
Amy
Hi jeremie, Sorry for vanishing again , I would reply to your questions here now
This thread was AWESOME ... It gave me the push I needed to start my own lead gen funnel. Been doing extremely well with it, THANK YOU!
I would also like to update you guys on compliance side of things in the UK , As I mentioned above google requires FCA authorization, Similarly Facebook requires the same now and I believe native ad networks have started asking for the similar stuff...
Here's the email from Facebook
To prevent fraud and impersonation in financial service advertising, we are rolling out a requirement that all organisations running financial ads in the UK need to be registered with the Financial Conduct Authority (FCA).
If you are registered with the FCA, please provide your FCA firm registration number and a contact method linked to your organisation. This information won't be shared with anyone, but it will allow your ads to keep running without interruption.
Your confirmed FCA authorisation applies to all business ad accounts that you own for this organisation.
@kjrocker
Long time no see my man. Learned alot from you back in the PPV days with LeadImpact and TrafficVance. I even did some personal coaching with you on campaigns as well. First read on your blog maybe 8-10 years ago now? Good god time flies.
Good to see you are still rocking and rolling. One thing I remember from your old coaching session....Question 1, what should you promote? Your answer, "not affiliate products. Use these skills to build something of your own!" I always remembered that. I am getting reacquainted with affiliate marketing but am going to quickly move over to local lead generation as its always what I saw as the real opportunity. Less competition, tons of verticals, all GEOs are more open, easier ad compliance, etc.
I've set up multiple real estate local lead funnels already in my life and done quite well with them. Generating awesome leads and deals for not much money. I can see how all other services and businesses lack any understanding of how to generate customers and we can do it with affiliate skillsets all day long.
I have a HUGE mindmap I have been adding ideas to for like 4 years about local leads generation and this had many good additional points in it. Cool to see it is the direction you went as well. Let's me know I am headed the right way. Ultimately you own everything, can see all the tracking, manage all the data, run all the APIs etc. As someone who is savvy with the tech I see it as a major win win overall. Plus get good at creating good quality leads, even on a local scale and you can make more than enough money for whatever you want.
I remember talking with you when you were still in Pakistan I believe at the time. Then Dubai, then UK now? AWESOME! Glad to see you around, and I hope everything in your life is going awesome.
(p.s. I still have some orange flashing yes no buttons on my old PPV landers that I grabbed from your LP domains. You know the ones...) 
Ha ha i remember those landers, those were the days with the laser targeted traffic !!!