Lead distribution has evolved significantly since the early days of Internet marketing. Companies now require sophisticated systems to route leads efficiently across various industries, sometimes at incredible volumes. Through the 25+ years boberdoo has served lead generators, sellers and buyers, we've identified ten standard methods for distributing leads effectively. Understanding these methods can help you choose the right approach for your business needs.
Price-Based Distribution
- How it Works: The system uses ping post technology to "ping" all matching buyers about a new opportunity without revealing identifying contact info. Buyers use automated rules to evaluate the ping and return a bid.
- Industry Examples:
- Home Improvement: A homeowner requests a roofing quote. Contractors matching the zip code and project type receive the ping, submit bids, and the highest bidder wins the exclusive contact info.
- Legal Services: Law firms bid dynamically on case inquiries based on their specific expertise (e.g., auto accident vs. workers' comp) and their current caseload capacity.
Price-based distribution functions like a real-time auction house for leads, where the highest bidder wins; when a lead enters the system, it triggers an instant auction among qualified buyers. The system uses ping post technology to "ping" all matching buyers about the new lead opportunity. Each buyer's system receives a "ping" containing key lead details and returns a "post" with their bid amount within milliseconds. This happens in real-time before the lead knows their information has been processed. Buyers can set automated bidding rules based on lead characteristics like location, project type or customer demographics, allowing their systems to make split-second bidding decisions. Check out this page for more advanced ways you can use price-based distribution. Although all industry verticals match with price-based distribution, from the most common to the niche, two are good examples for explaining how it works.
In home improvement, for example, when a homeowner submits a roofing request, the system instantly notifies all contractors whose filter sets match the lead's criteria. Each contractor receives key details like project type, location, and timeline. They submit their bids, and the highest bidder wins the opportunity to serve that customer. This ensures contractors can aggressively pursue the most valuable leads for their business while maintaining profitability.
Legal services operate similarly, despite being a completely different industry. When someone submits a legal inquiry, the ping is sent out to law firms that match the criteria for the lead. Firms specializing in that type of law can bid based on their expertise and current caseload.
Earnings Per Lead (EPL) Distribution
- How it Works: The system evaluates both the bid price and the buyer's historical performance (like call answer rates).
- Industry Example: Two insurance agents bid on leads in the same territory. Agent A bids $50 but only answers 60% of calls (EPL = $30.00). Agent B bids $35 but answers 90% of calls (EPL = $31.50). The system routes the lead to Agent B, maximizing the likelihood of a successful connection.
Earnings Per Lead distribution revolutionizes phone-based lead routing by incorporating real-time performance metrics into distribution decisions. Instead of relying solely on bid amounts, the system calculates a quality score based on recent call history and revenue generation, ensuring leads go to buyers who consistently deliver value. Earnings Per Lead distribution is very similar to the price distribution method but is more complicated.
Consider two insurance agents in the same territory. Agent A offers $50 per lead but only answers 60% of incoming calls. Agent B pays $35 per lead but maintains a 90% answer rate. Despite the lower per-lead price, Agent B's EPL score ($31.50) exceeds Agent A's ($30.00) because of superior performance. The system recognizes this efficiency and prioritizes leads to Agent B, maximizing successful connections.
This method particularly shines in the legal industry. When a potential client calls about an auto accident, the IVR system collects their zip code and case type. The system then calculates real-time EPL scores for all matching attorneys based on their recent call handling performance. Thisensures leads route to lawyers who bid competitively and consistently provide exemplary client service through reliable call answering and appropriate call duration.
Priority Distribution | Round Robin Lead Distribution
- How it Works: The system checks priority levels first. If Buyer A is Level 6 and Buyer B is Level 5, Buyer A always gets the first match. If multiple buyers share Priority Level 6, the system defaults to a round-robin rotation, giving the lead to whoever has waited the longest.
- Best For: Internal sales teams or lead sellers who need to guarantee fulfillment for premium, contracted buyers before opening leads up to a broader network.
Priority distribution, also sometimes known as Round Robin, when there are equal lead values as opposed to multiple priority values, relies on manually assigned priority levels to determine lead routing. This method offers simplicity and direct control over lead flow, making it suitable for specific buyers needing guaranteed access to certain lead types.
When multiple buyers match a lead's criteria, the system first checks their priority levels. For instance, if Buyer A has priority level 6 and Buyer B has priority level 5, matching leads will always route to Buyer A first. This allows lead sellers to ensure their premium buyers receive preferential access to leads matching their criteria.
In cases where multiple buyers share the same priority level, the system defaults to a round-robin distribution, rotating leads among equal-priority buyers based on who has yet to receive a lead in the longest time. This creates fairness within priority tiers while maintaining the overall hierarchy.
Weighted Logic Distribution
- How it Works: The system continuously balances the ratio of leads delivered against the buyer's total target.
- Industry Example: In the moving industry, a national chain may target 1,000 leads/month, while a local mover wants 100. If the national chain is currently at 10% of their goal (100 leads) and the local mover is at 5% (5 leads), the system will route the next lead to the local mover to keep their fulfillment ratios mathematically balanced.
Weighted logic ensures proportional lead distribution based on buyer capacity and targets. It is like the priority distribution method but is a more complicated version. Unlike simple round-robin systems, weighted logic maintains precise ratios of lead flow based on predetermined targets, making it ideal for industries with diverse buyer sizes.
The moving industry exemplifies this method's effectiveness. Consider a scenario with two moving companies: a national chain targeting 1,000 leads monthly and a local operator aiming for 100. When a lead arrives, the system calculates each company's current fulfillment percentage. If the national chain has received 100 leads (10% of target) while the local mover has 5 leads (5% of target), the system routes the next lead to the local mover to balance the ratios.
This mathematical approach extends beyond simple lead counts. The system continuously recalculates percentages with each new lead, ensuring consistent proportional distribution throughout the month. This prevents larger buyers from monopolizing lead flow while guaranteeing smaller operators receive their fair share of opportunities.
Waterfall Distribution
- How it Works: Leads are offered to buyers with the strictest criteria and highest bids. If those buyers pass on the lead (or fail to convert it within a specific timeframe), the lead "waterfalls" down to buyers with broader criteria or lower bids.
- Best For: Financial services and mortgage lending, where high-intent, prime-credit leads are routed to premium buyers, while sub-prime leads cascade down to alternative lenders.
Waterfall distribution creates a sequential routing hierarchy in which leads flow from top-tier buyers to subsequent tiers based on specific criteria. This method ensures maximum exposure while maintaining pricing and quality standards.
In financial services, itleads the first route to premium buyers with strict criteria and higher bids. If these buyers don't convert the lead within a specified timeframe, it "waterfalls" to the next tier of buyers with broader criteria or lower bids. This continues until the lead finds a match or expires. It's like priority distribution, but if the buyer in the top position wants to pass on the lead, it goes to priority number two to see if they purchase the lead, and so on.
Custom Logic
- How it Works: Through boberdoo's flexible platform, administrators can combine any number of filters, pricing rules, and routing trees to fit their exact use case. If your lead flow ends with "it depends...", custom logic automates it.
When none of the above lead distribution methods fit the use case, the custom logic method is an option. This method is a component of the boberdoo system. We take pride in our extreme flexibility in all lead types and filters to satisfy our clients. As long as your case doesn't end the decision tree with "...it depends.." we can build a customized lead distribution method that suits the needs of your leads and buyers. Ask us about it here.
Filter Sets and Lead Distribution
Those are the main ways that companies can automatically distribute their leads. All these methods use filter sets in the boberdoo system, so they can be distributed based on demographics, location, time of day or any stipulation you need to route your leads to the correct buyers.
Demographic-Based Distribution
- How it Works: The system parses form data instantly to match the consumer's demographic profile with the buyer's exact requirements.
- Industry Examples: A mortgage lender can set filters to only receive first-time homebuyers under 35. Alternatively, an insurance agency can route Medicare inquiries specifically to senior-coverage specialists, while sending high-risk auto leads to a completely different department.
Demographic-based distribution routes leads based on specific population characteristics that buyers target. This method ensures leads match precise buyer requirements while maximizing conversion potential.
A mortgage lender might focus on first-time homebuyers under 35 with specific income ranges. When leads arrive, the system checks demographic criteria like age, income and homeownership status before routing. This allows lenders to receive only leads matching their target customer profile.
Insurance companies often use demographic routing to match leads with specific policy types. For instance, Medicare supplement insurance leads routes to agents specializing in senior coverage. In contrast, auto insurance leads under-25 drivers to high-risk insurance specialists.
Location-Based Distribution
- How it Works: Buyers set geographic filters. The system verifies the lead's location data and matches it against these territories.
- Industry Examples: A pest control company can set different bid prices based on the lead's distance from their headquarters. In healthcare, patient inquiries are geographically routed to ensure the matched practitioner is in-network and within driving distance.
Location-based distribution ensures leads route to buyers who can actually service them. This method goes beyond simple zip code matching to consider service areas, territories and coverage zones.
A pest control company might service multiple counties but want different pricing tiers based on distance from their headquarters. The system can automatically adjust bid requirements based on the lead's distance from service centers, ensuring profitable operation across their entire territory.
Healthcare providers use location routing to match patients with in-network facilities and practitioners. When a potential patient submits an inquiry, the system checks insurance network coverage areas and provider locations before routing the lead, ensuring matches align with both geographical and network requirements.
Time-Based Distribution
- How it Works: The system monitors buyer schedules and time zones, automatically turning lead flow on or off, or adjusting lead pricing for "after-hours" inquiries.
- Industry Examples: A national insurance agency can route all morning leads to their East Coast call center. As the East Coast center closes, the system seamlessly redirects flow to their West Coast offices, ensuring every lead is called immediately.
Time-based distribution controls when leads route to different buyers based on operating hours, staff availability, and performance patterns; you can even adjust the price for leads outside of operating hours. This method optimizes lead delivery timing for maximum contact rates.
Consider a national insurance agency with call centers in multiple time zones. During East Coast business hours, the lead's route is primarily to Eastern offices. As those offices close, the system automatically shifts distribution to central and western locations, ensuring consistent coverage.
Real estate agencies use time-based routing to balance lead distribution between agents' working hours. The system tracks each agent's availability schedule and routes lead accordingly, preventing leads from going to off-duty agents while maintaining fair distribution among available staff.
Lead Quality/Lead Scoring Distribution
- How it Works: Using services like boberdoo's leadQC, incoming leads are instantly checked for email/phone validity, address accuracy, and IP fraud patterns. The lead is assigned a score (0 to 100).
- Industry Use Case: Buyers set minimum score requirements in their filter sets (e.g., only accepting leads scoring 80+). High-scoring leads command premium prices, while lower-scoring leads are routed at a discount to buyers who specialize in working harder-to-convert prospects.
Lead scoring transforms raw leads into quality-rated opportunities by evaluating multiple data points before distribution. Each lead entering the system undergoes instant verification through boberdoo's leadQC service, which checks phone numbers, email validity, address accuracy, IP location against potential fraud patterns, and gives an appropriate score for the lead type. The system also runs duplicate checks across multiple timeframes and assesses domain quality.
Based on these factors, leadQC assigns each lead a score from 0 to 100. Buyers can set minimum score requirements in their filter sets, such as only accepting leads scoring 80 or higher. A mortgage lender might require different product scores: 85+ for conventional loans, 75+ for FHA loans, and 90+ for refinancing opportunities.
The system enables automatic price adjustments based on quality scores. Higher-scoring leads command premium prices, while lower-scoring leads route buyers specializing in harder-to-convert opportunities at appropriate rates. leadQC also provides
- Comprehensive reporting on lead quality trends
- Help sellers identify and address quality issues with specific sources or campaigns
- Optimal ROI for both buyers and sellers.
boberdoo.com has been developing lead distribution software since 2001. Our system processes over $12 million worth of sales leads daily, serving as the backbone for lead companies across multiple industries. Need help choosing the correct distribution method? Contact us at 800-776-5646.
