Is lead aggregation dead?

As a producer of lead aggregation software, this question "Is lead aggregation dead?" is an important one. Upcoming TCPA changes and other regulation revisions in many lead verticals certainly suggest that the days of just buying everything under the sun for one's clients are over, or at least soon will be. However, there will always be a need for companies that can secure quality traffic for lead buyers and should view these changes as an opportunity rather than a crisis.

First, it is important to understand the difference between lead aggregation and lead arbitrage.  Lead arbitrage is simply buying a lead from one company and selling it to another for more money than you paid.  Arbitrageurs add no value in the lead process and just take advantage of marketplace inefficiencies.  Regulation changes may well reduce or eliminate lead arbitrage as the additional costs of compliance and technology impact the potential profit.  Lead aggregation, on the other hand, is the process of compiling leads from multiple marketing methods and/or vendors and routing them in a standard, consistent format to the lead buyer.  In fact, lead aggregation adds value to each party involved in the process, the lead buyer, the lead seller and the lead itself.

Lead buyers benefit from lead aggregation by having access to more traffic methods, more vendors and ultimately more leads than internal marketing efforts alone would allow.  Additionally, lead aggregators can utilize technology, like the lead distribution system, to evaluate lead source quality and optimize the lead flow that works best for the lead buyer.  These actions result in a lower cost-per-acquisition for the lead buyer.

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Lead aggregation also benefits the lead seller by providing additional coverage and allowing the lead seller to concentrate on the generation of leads.  Any lead not sold represents a loss of revenue opportunity for the generator but lead aggregators can help optimize the lead flow by providing additional demand.

Finally, the lead itself is also better off in a marketplace containing lead aggregators.  Typically, a lead submission is a request to be contacted for a specific service but if the lead generator does not have coverage for the specific qualifications submitted by the lead, no service provider will ever contact them as their request went unsold.  The lack of followup contact reduces the perceived value of the entire lead generation process.  Lead aggregation helps increase the chances of a lead speaking with a service provider.

So while lead aggregators should definitely be aware of the changes in the industry, lead aggregation provides too much value to the lead process to die out.  Lead aggregation companies may need to adjust or alter their offerings based on regulations in their specific vertical but ultimately help to provide an efficient marketplace for all parties involved.  If you would like to learn more about how can help your lead aggregation business, please click on the Contact Us tab or call 800-776-5646.

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