I started learning about lead distribution not too long ago, and I can’t tell you how confused I was at first. Learning the system, the verticals, pricing, and all the little factors that affect lead quality, relevance, and everything else... it wasn't easy. Nailing down the system was my first challenge, but working through it now is simple. However, working with lead distribution, the goal is to make money, and I was not doing well at that. That is, until I started using pingpost.
The Versatility of Pingpost
One of the biggest advantages of pingpost, in my opinion, is the ability to set my own profit margins based on the different types of traffic routing through my system, either as a static dollar amount or a dynamic percentage. This flexibility lets me optimize each relationship while minimizing the risk I have to take.
Some lead generation companies build their business around a flat dollar markup. In this case, your lead distribution system calculates the predetermined profit margin based on the bids in your ping tree. If, for example, you want to make $5 on each lead and the best bid is $20, your system will automatically respond to the seller with $15. If you want to make $5 and the best bid is $5.50, the system will automatically respond with $0.50. A fifty cent bid will rarely net you a solid lead in this situation, so we can see that static pricing isn’t always ideal.
Other lead generation companies set their profit margin on a percent basis. So, for example, if you set a 50% profit margin and the best bid is again $20, your system will calculate 50% of the bid ($10) and return the balance ($10) back to the seller as your response. When using the percent calculation, you also have the option to set up a percent profit margin matrix based on the dollar value of the lead. For example, you could set a 10% profit margin for leads under $10, a 20% margin for leads between $10 and $20 and a 30% margin for leads over $20. This flexibility allows lead generation companies to remain competitive in the marketplace and optimize their lead flow.
So Which is Better?
So neither is flawless, but both have some major advantages. Because of this, I have a lot of flexibility in how I set up my sources. Some of my verticals never change - I’m rarely paying a dollar above or below the average for a debt settlement lead. I can set a static price for this, and not have to worry about my revenue all that much, always making the same for every lead. My home improvement leads, though, can sell on a wide spectrum, so a static price might make me miss some good leads. Now I can make sure I’m making a profit, no matter what, on those leads with a dynamic pricing option. Pretty slick.