Lead Flipping 101: All That You Need To Know About Lead Brokering

Victoria Berezhetska
Content Lead
6 minute read
Victoria Berezhetska
Content Lead
6 minute read

Traditional marketing approaches like cold calls or in-person networking are no longer the only reliable methods brands use to generate leads.

Many businesses are now more strategic with their time and marketing efforts. So instead of devoting precious time to recurring tasks, they utilize a lead flipping strategy paired with automation solutions that eliminate processing errors and boost productivity.

Lead flipping is not a new business idea, but it remains one of the most popular ways to create a more efficient lead distribution process. Here’s a breakdown of all you need about lead flipping and how it helps businesses maximize profits.

What Is Lead Flipping?

Lead flipping, also known as lead brokering, is the process of purchasing and reselling pre-qualified leads after they go through the filtering system.

Many businesses lack the required expertise or do not have access to the network of buyers. For that reason, these organizations struggle with lead buying and lead selling. Since the primary goal of flipping leads is to make a profit, it’s not uncommon for companies to look for a middleman — a lead broker — to handle the transaction.

What Is a Lead Broker?

Enterprises and small businesses collect lots of customer information, including names, email addresses, and phone numbers. As a result, small businesses often look to sell declined quality leads, and that’s when lead brokers come into play.

A lead broker is a person in the middle looking for and dealing with lead sellers and buyers. Brokers typically buy and resell leads generated through email marketing efforts, inbound forms, and live call transfers, among other initiatives. However, cooperating with a broker is just one of many ways to ensure that your leads get maximum exposure and visibility.

Understanding the Lead Flipping Process Through Compliance

While it is an efficient way to earn money, flipping leads has several downsides. Let’s look at some of them:

  • Opted-in information: Marketers must ensure to remain compliant during the exchange of consumer information. Otherwise, the deal might result in a legal dispute.
  • Risk of misuse: When selling leads online, it’s crucial to ensure that you have taken appropriate measures to avoid breaking the law. Make sure to look into GDPR, CPRA, and other regulations on data protection.

Is Lead Flipping Legit?

When a company or a broker sells leads, there’s always a risk of misuse. That is why it’s highly recommended for businesses to ensure they know who they sell to and how their clients plan to use the acquired information.

When handled without care, consumer data can end up in the hands of ill-intentioned businesses and individuals. So it goes without saying that making a sale doesn’t entirely guarantee that your leads will find the answers they want — you must trust the buyers or advertisers you sell to.

Today, niche leads are in high demand. Companies operating in auto loans, home improvement, solar, or finance industries require a steady flow of leads to foster business growth. That explains why many companies are looking to purchase lists of high-intent lead prospects like insurance leads or home service leads.

How To Make Money With Lead Generation

Lead generation remains the lifeblood of marketing and fuels the demand for a brand’s products and services. So businesses are always looking for suitable automation solutions to help them with recurring tasks like educating cold leads, converting them into warm leads, turning them into prospects, and eventually paying customers.

Naturally, not every company is in the lead generation business. But many organizations are looking to give their declined leads a new life, and that’s nearly impossible without implementing the right sales lead software.

How To Get Leads To Sell

Chances are you have encountered offerings online, like sales-ready lead packages. But as a rule, high-quality leads are hard to find. So if you’re looking to buy or sell leads online, consider following these tips:

  1. Focus on the quality of leads and ensure they are interested in the specific service or product.
  2. Concentrate on segmentation by age, interest, geographic location, niche, etc.
  3. Pay attention to the number of leads on your list, but remember that quality matters more than quantity.

Legit Industries Where You Can Make Money With Lead Flipping

Not every niche and lead is created equal, which explains why customer acquisition costs vary. When looking to buy or sell leads, consider the following industries:

  • Healthcare
  • Insurance
  • Finance
  • Solar
  • Loans
  • Mortgage
  • Home services
  • Affiliate marketing

How To Start a Lead Broker Business

If you want to start a brokering or lead gen business, you need to consider how you will generate leads, how much you will charge for your services, and ensure your leads will be interested in buying from specific advertisers.

Once you have created an action plan that will help you start a brokering business from scratch, here is what you need to do next:

  1. Choose a specific niche
  2. Create a website or a landing page and provide valuable and relevant information and education to drive potential clients.
  3. Find companies looking to sell leads or partner with affiliate networks.
  4. Reach out to potential clients and start building long-term relationships.

For business owners looking to establish an ancillary revenue stream with brokering, it’s crucial to have several choices when it comes to the final destination for their leads. For instance, Phonexa’s Ping Post Calls 2.0 feature enables businesses to deliver leads to multiple buyers with various criteria, filters, and prices.

Ultimately, implementing automation software is an excellent choice for companies looking to establish and grow their business and back their initiatives with a competent lead distribution logic.

How To Sell Leads To Local Businesses

Marketers often find themselves in a bit of a dilemma when trying to sell leads to local businesses. A local company, as a client, can be even more demanding than an enterprise because of the smaller budget and higher expectations.

Finding a business and then building a targeted campaign around the client’s needs sounds like an excellent option. But in reality, you may already have the leads you want to sell with no buyers.

Let’s explore how you can improve your chances of selling to local brands.

Nurture Leads Before Selling

After capturing leads, it’s essential to ensure they are likely to convert. Since it’s impossible to sell cold leads, you need to get them interested in your client’s product.

Well-crafted email sequences can help you nurture leads, boost engagement, and increase the likelihood of conversion. Here is an example of an email automation workflow that can come in handy if you’re considering an email drip campaign.

Source: Business 2 Community

Implement a Lead Broker Software

With the right sales lead software in place, you can identify lead sources, get insights into the lead journey, and discover the value of declined leads.

As part of Phonexa’s LMS Sync solution for lead tracking, management, and distribution, the ping tree service improves marketers’ chances of selling their leads by getting connected to more interested parties. Additionally, ping tree technology can help them efficiently distribute their leads to a network of buyers, including local businesses.


Phonexa’s lead management software also offers a white labeling feature to allow businesses to expand their reach, capitalize on lead brokering, and fine-tune their marketing efforts.

Wrapping Up

Setting up a successful lead selling business can be tricky without a ready-made lead distribution system. Companies equipped with the right automation solution and lead flipping insights can build more efficient workflows and find the best destinations for leads they are planning to sell.

Schedule a consultation with one of Phonexa’s experts to learn how LMS Sync can generate more high-quality leads and create an efficient lead distribution process to power your lead brokering efforts.

Got Questions?

Get in touch! We are available 24/7.

Victoria Berezhetska avatar
Victoria Berezhetska
Content Lead

Victoria Berezhetska is a Content Lead at Phonexa. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. In her work at Phonexa, she covers diverse topics around digital marketing, including affiliate marketing, call tracking, lead generation, marketing automation, and so much more.

Education: City University of Seattle

Expertise: Affiliate marketing, digital marketing, call tracking, lead generation, insurance


  • 8+ years of experience in digital marketing, specializing in building customer loyalty

  • Deep B2B and B2C content expertise intertwined with strong analytical and interpersonal skills

  • Unwavering drive for growth and commitment to creating impactful content

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