What is lead generation? If you are unsure of what lead generation is then hop across here and get a 1m primer. .
So it's a fair question to ask given that it isn't for everyone.
"Would A Lead Generation Service Work For My Business?"
Scenario 1 - Retail
If you are a retail shop or e-commerce store selling products then prospects for you are people that would be interested in the product you sell. You could very well benefit from advertising but for small purchases of less than 100 pounds sending people direct to your product page or to a brand awareness page can yield direct sales. Lead generation is a more complicated and strategic method, used for more expensive services and the target customer is not going to buy straight away. Lead generation is not a good fit. But simple advertising campaigns are.
Scenario 2- Travel services
If you are selling travel related services then depending on what those are and how much they cost then lead generation could work! If a family holiday to Antigua is costing 4,000 pounds and the profit is 600 pounds on this sale but considering a LTV (Life Time Value) situation then this certainly has enough profit to consider. For any lead generation project you would need to consider that it is going to cost you quite a lot (with paid advertising) to yield a positive result. This is why it is only effective for more costly purchases such as a family holiday. There are cases where you should be exploring organic search (SEO) most probably in ALL CASES however.
Scenario 3- Financial Services
Financial services such as life insurance or mortgages offer businesses great LTV and as such are great candidates for lead generation. They benefit greatly from the strategic nature of a complex funnel with retargeting campaigns. The high relative cost of PPC campaigns is adsorbed in the LTV for the client and you can get a very healthy ROAS with high CPC.