3 Digital Marketing Strategies That Actually Work for Small Businesses

In this post I’ll walk you through three practical digital marketing strategies that work for small businesses: buying leads, local SEO, and paid ads. I’ll explain when each strategy makes sense, the common mistakes I see, and simple steps you can take right away to get better results.

Overview: Which strategy fits your business?

Before diving into each tactic, pick the approach that matches your business model and budget:

  • Service-based local businesses (plumbers, landscapers, cleaners) usually benefit most from local SEO and local lead sources.
  • Product sellers (e-commerce) should focus on optimizing product listings on platforms like Amazon, and using marketplace ads or partnerships.
  • If you have budget for immediate traffic and leads, paid ads can drive quick results — but expect to manage and invest over time.

1) Buying leads — fast, but often expensive and shared

Buying leads means paying third-party platforms or lead providers for contact information of people who expressed interest in a service. Examples include lead networks, directories, or platforms like Yelp and Angi (Angie’s List).

Pros

  • Quick way to get prospects contacting you.
  • Useful when you need immediate jobs or customers.

Cons

  • Leads are often resold to multiple businesses — you may pay premium prices for shared leads.
  • Cost can be high and unpredictable depending on the niche.
  • Quality varies — expect to filter and qualify leads.

Tips for buying leads

  • Understand how the provider sells leads: are they exclusive or shared? How many businesses receive the same lead?
  • Track cost per lead and cost per sale carefully. If a lead costs $100 but converts poorly, adjust or stop.
  • Use bought leads as part of a broader strategy — pair them with strong follow-up, rates, and good reviews.

“Buying leads can give you immediate prospects, but don’t expect it to be cheap — and remember leads are often sold to many businesses.”

2) Local SEO — long-term, high value for service businesses

Local SEO helps your business show up in local search results and maps when people look for services near them. For most local service businesses this is one of the most cost-effective channels long-term.

Key elements of local SEO

  • Google Business Profile: complete your profile, add photos, services, and keep hours updated.
  • Reviews: encourage satisfied customers to leave reviews — they drive visibility and trust.
  • Website relevance: your website should clearly describe the services you offer and the areas you serve. Use focused service pages.
  • Local citations: consistent name, address, phone (NAP) across directories helps search engines trust your business.

Why it’s effective

Local SEO often costs less than continuous ad spending and can generate steady organic leads. If competition is low in your area, you may rank faster. But where competition is high, you may need to hire someone experienced to get results.

Common pitfalls

  • Expecting immediate results — local SEO takes time to build momentum.
  • Not having enough reviews or an optimized website, which prevents clicks and calls even if you appear in search results.

3) Paid ads — fast traffic, requires ongoing investment

Paid ads include Google Ads (search, display, YouTube), and platform-specific ads like Amazon Sponsored Products for e-commerce. Paid ads are the quickest way to appear in front of active buyers, but they require budget, testing, and continuous optimization.

Pros

  • Immediate visibility on search engines and market platforms.
  • Granular targeting (keywords, location, demographics).

Cons

  • You must keep paying to maintain traffic; once you stop, traffic drops.
  • Initial results can be misleading if campaigns aren’t given enough time or budget for learning.

Tips for running paid ads

  • Don’t judge a campaign after just a few days or a small spend (e.g., $50). Ads need time to learn and gather data.
  • Set realistic testing budgets — a campaign often needs several weeks to show meaningful trends.
  • Use conversion tracking so you measure leads or sales, not just clicks.
  • For products, optimize your marketplace listings (titles, descriptions, images) before or alongside ads — ads perform better when the product page converts.

“A short test of a few days and $50 is usually not enough — your campaign needs time to learn and show real results.”

Putting it all together: recommended approaches by budget

  1. Low budget / new business: Start with local SEO basics — claim your business listing, get reviews, and make sure your website clearly explains your services. This is what I often offer to new businesses because it doesn’t require large ad budgets.
  2. Moderate budget: Combine local SEO with a small paid ads test (Google or marketplace ads). Use ads to get immediate traffic while SEO builds long-term organic leads.
  3. Higher budget or urgent growth: Use a mix of paid ads, marketplace partnerships (for products), and selective lead purchases if you need quick volume. But track cost per acquisition carefully.

Final thoughts

Each strategy can work — the right choice depends on whether you sell services or products, how much you can invest, and how quickly you need results. Local SEO gives the best long-term return for service businesses. Paid ads bring fast visibility but require ongoing spend. Buying leads can create immediate opportunities but tends to be more expensive and is often shared with other businesses.

If you’re unsure where to start, I recommend a basic audit to see where your website and listings need improvement before spending heavily on ads or leads. If you’d like help, Salazar Digital – Marketing & Web Design offers audits and support for new businesses to get set up the right way.

Good luck — focus on one or two strategies, track your numbers, and give campaigns the time they need to prove themselves.

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