Hidden Potential with < $5,000 in Tax Debt
In the lead generation industry, it’s common for businesses to chase after the “big fish” – leads with a higher tax debt liability. However, there’s a largely untapped market that many are overlooking: leads with tax debt under $5,000.
The Misconception
The general perception is that these smaller leads don’t offer as much profit potential. But this viewpoint fails to consider the bigger picture and the unique opportunities these leads present.
Why Sub-$5,000K Leads Matter
1. Volume and Accessibility
Firstly, there’s the sheer volume of these leads. The number of people with tax debts under $5,000 far exceeds those with larger debts. This means a larger pool of potential clients and a higher chance of conversion.
2. Lower Acquisition Cost
The cost of acquiring leads of $5,000K is significantly lower than for larger leads. This means you can build a substantial client base without a massive initial investment. Not to mention that getting these smaller clients will also help reduce your overall CPA.
3. The Opportunity of Unfiled Tax Returns
Another significant factor to consider is the issue of unfiled tax returns. A substantial number of individuals with tax debts under $5,000 also have unfiled tax returns. This presents an additional service opportunity for businesses in the tax resolution industry.
Filing these outstanding tax returns is not just a matter of compliance, but also a potential revenue stream. By offering this service, businesses can assist clients in becoming fully compliant with their tax obligations while also generating additional income.
Moreover, once these tax returns are filed, there’s a chance that these individuals might end up owing more than $5,000-10K in tax liability. This could be due to additional taxes owed, penalties, or interest that has accrued over time. In such cases, these clients’ transition from being sub-$5,000K leads to the more lucrative category of owing upwards of $10K in tax debt.
By proactively engaging with these clients when their debt is still under $5,000, businesses can ensure they are the first port of call when the need for more extensive tax resolution services arises.
What we see with our clients:
Although most of our clients are looking for those higher tax liabilities, there are many of them that also purchase the lower tax liabilities from us. Reason being, is because it helps with their overall CPA. As an example, if a client is at a $750 CPA with our higher tax liability leads, purchasing the lower liability leads will help bring that $750 CPA even lower. This is why many of our clients bundle the different tier leads together.
While it might be tempting to focus solely on leads with larger tax debts, don’t overlook the smaller tax liabilities leads as they might come with some great benefits. They offer a cost-effective way to build a loyal client base and can provide significant returns in the long run. Reach out to our team to ask for more information!
