We are frequently asked about the various distribution options in the boberdoo system but surprisingly, few prospective (or current) clients ask about the lead distribution software billing options. While no one would argue that the the ability for a lead generation company to effectively route leads to buyers is of the utmost importance,a company must be able to actively bill clients for those leads if it is to stay profitable. So, on the day after Christmas with month/year end figures approaching and likely a fairly slow lead volume day, read below on the lead distribution software billing options in the boberdoo.com system and give some thought about whether your billing process is as efficient and accurate as it could be. Of course, if you need more information on what lead distribution software is, please click here.
Inaccurate billing drains company resources in the form of the time and effort it takes to review and determine the correct number of billable leads. If your billing process results in attempting to charge the clients for more leads than expected, you are left with unhappy clients who, at least on some level, feel like they are being taken advantage of. On the other hand, under-billing clients leaves additional revenue on the table, increases your effective cost-per-lead and ultimately prevents you from maximizing the revenue on each lead generated.
boberdoo.com's Lead Distribution Software Billing Options
The key to any effective billing process is an accurate recording of each transaction for each client. The Transactions tab in boberdoo.com does just that - it records every charge and credit for a specific buyer on a line-by-line basis. Every transaction has an ID associated with it allowing you to track back each charge to a specific lead which is extremely helpful in any discrepancy dispute. This process also allows for the lead distribution software billing options below and the ability to create insightful reports. The Transaction tab can be viewed by both you and your client, minimizing discrepancies.
Prepaid vs Credit
The ability to handle clients on either a prepaid or credit basis is not new or even unique to the boberdoo.com system. However, the flexibility to be able to set up certain clients as prepaid and others on a credit is a valuable option to have. And more importantly, being able to efficiently transition a client from one method to the other (without spending a week doing reconciliations) may ultimately allow you to salvage client relationships. Being able to convert a prepaid client to an invoiced client will also allow your company to eliminate the new client nonpayment risk and only extend credit to those buyers with an established track record.
Extending credit to a client essentially works as fake money, allowing buyers to run negative and lead generation companies to then invoice clients the amount of money required to "bring them back to $0." The ability to automate this process (with confidence the resulting invoices will be accurate) can save your company valuable time and labor costs. Automated invoicing allows boberdoo clients to be well organized and stay on top of the financial position of each client.
While automated invoicing may be a nice feature, it probably will not significantly change any of your business processes. However, automated rebilling is another story. boberdoo.com is integrated with Authorize.net CIM and Braintree to give its clients the ability to store a client's credit card and periodically (and automatically) charge the buyer for leads received much in the same way that Google Adwords and other platforms bill. Automated rebilling options are set on a per-client basis and can be done based on a specific dollar amount trigger (I want to charge client XYZ $500 every time the balance falls below $100) or on a timed basis (I want to charge client ABC each Sunday for all leads received in the previous 7 days). Automated rebilling allows lead generation companies to charge for leads more frequently which prevents boberdoo clients from extending too much credit to any one client and increases the chances that the bills will be paid. Buyers whose credit cards fail on a transaction can be automatically shut off, further limiting the lead generation company's exposure.
Prepaid via Credit Cards/Bank Account
Do you sell leads to smaller retail clients? boberdoo.com clients can push an Add Funds tab to their buyer's login so each client can enter in a credit card or bank account and prepay for leads based on dollar values that you determine. This process works best for lead generation companies that have a lot of smaller clients that may purchase leads on a more sporadic basis. Giving the buyer the ability to log in to an account and add funds for lead purchase is beneficial for lead generation companies that would like to provide a "self-serve" model without adding labor costs in terms of client relationship management.
This billing method is not used often in traditional lead generation, which tends to gravitate toward the per-lead pricing model. However, we have seen more lead generation companies launch directories and other non-traditional lead programs for which the subscription model works well. Through Authorize.net CIM, boberdoo.com clients can bill customers a flat-rate on a monthly basis for additional services and programs. (Upsell idea: just because the lead buyer login is included in your boberdoo.com lease does not mean that you cannot charge your customers a monthly fee for it)
The last lead distribution software billing option we will discuss is revenue sharing. While we would not recommend this option unless you have an established relationship with the buyer, boberdoo.com clients have the ability to set up lead buyers on a revenue split basis. Our clients can then upload the revenue generated from specific leads and participate in the sales from that lead. Obviously this process is preferable for lead buyers as the risk is shifted to the lead generation company but there can be upside potential for companies with confidence in their lead conversion rates.
boberdoo.com produces lead distribution software that allows you to track, manage, route and bill leads based on custom business rules you create. If you would like to learn more about the basics on ping post software, please click here or call 800-776-5646.