A Twist On Lead Generation

[JDIII2007]

I saw a website today that is a variation on the lead generation model that was used by limos.com. Instead, of having customers be able to hear from several different companies, this website directs the leads to only one company in a city. The company basically has one client in a number of cities across the country and has a dedicted folder or website to each company that I presume they could use for Adwords although I don't see any ads but are certainly using for SEO. They are also charging more per lead in this industry than the other limos.com like companies. My question is which service do you think does better financially and is easier to manage?

I will walk through the CENTS analysis but would like any input on this that you guys may have?

Need:

A common complaint of unhappy customers of the lead gen websites is that they feel the leads don't convert that well. Obviously, using a model where you are sending the traffic to only one customer would appease this group more. However, if you only have one customer per city, you would be married to that business and they would need to do well and last otherwise you would have to be changing them out for new companies with each change. The businesses probably would like the individualized attention that this service could provide though. You could create some SUCS service too depending on how qualified you made the leads for the company. Plus, you could tailor the website specifically to that business and the region. This obviously would vary in importance depending on the service.

From the regular customer standpoint, the need gets a little tricky. You would not be bogging them down with choices so that would be a benefit but customers are being bombarded with the message that they should be getting multiple quotes so I wonder if you not providing them a few extra companies to call or have call them actually hurts them. On the other hand, the message boards seem to say that for many services, the customers end up going with the first company that calls them back and has a price that is in their budget range. Therefore, despite all the talk about multiple quotes and choice, customers really may not care.

Entry:

The entry here would still be similar to any other online lead gen business. Still need coding, advertising, etc. Probably would be no different except maybe easier to get a single company on board. This may also appeal to companies more because they will feel less pressure to lower their bids to compete with low bidders on the traditional lead gen model.


Control:

Seems like you are still in control much like the more traditional lead gen model.

Scale:

I think this is the one that may be a concern. I see scale as possibly being limited because you are only taking one company per city. In the other model, you could be taking 5 to 10 or more and so you could have less scale with this new model.

However, they do seem to offer greater magnitude as shown by their increase in cost per lead over the more traditional lead gen services. Perhaps in this way they could make up for that by charging $10 to $20 more per lead? What do you guys think?

Time:

Think this would be similar to any lead gen business. It may even be easier to get more companies to join as you only need one for a certain city. The Automation probably is similar although it might be slightly more complex depending on how particular you made the lead capture information and whether this varied from company to company.

My Questions
So what do you folks think? How common is this new model in various industries? Do these models perform better financially than the other model? Do they do a better job of meeting the law of effection? I am thinking they could but am curious to hear your thoughts?

 

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[JDIII2007]

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[valueman]

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[nuwav]

Jo Wemainep

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Ewot

O vjopl timmoph iydmatowi mieft vu upi dunqepz nez ci wisz madsevowi gus vji zua'si timmoph ov vu, cav vjisi esi tuni sotlt.
- Vji iydmatowi dunqepz piift vu lpux jux vu dmuti up vjiti mieft. Og vjiz'si tmux vu siedv us katv cef datvunis tiswodi, zua xup'v ci fuoph catopitt gus muph.
- Emtu, og zua fidofi vu hu iydmatowi, zua'mm xepv vu jewi dunqivovust xeovoph et cedlaq op deti vjiz fup'v xepv vu dupvopai.

O edvaemmz vjopl zua neli mitt nupiz qis mief. Zua duamf timm uqip mief vu namvoqmi dunqepoit gus muxis sevi, cav zua jewi nusi tdemi. Juxiwis, og zua timm vuu nepz, vjip vjisi xomm ci vuu nepz dunqepoit vjev fofp'v dmuti.

O vjopl citv ot e jzcsof ug timmoph vu upmz 3 epf miv vjin dunqivi gus vji catopitt. Vjev xez, pu upi tmedlt ugg epf vji qsutqidv ot jeqqz vu hiv foggisipv rauvit.