It’s easy to assume buyers and sellers are at odds in the lead distribution process. Buyers want to pay the lowest amount possible for leads, while sellers are of course looking to maximize their own profits. If the two parties are exchanging a certain number of leads for a fixed price, it often ends up in a race to the bottom as sellers pad their catalogs with leads that fail to capture customer intent and buyers respond by demanding more for less. Fortunately, there’s another lead distribution system that’s gaining momentum in the industry.
With ping post, lead sellers send out a “ping” offering a small amount of general information about a lead, whether it’s zip code, household income, or the number of speeding tickets the lead has received. Buyers then get to decide what that lead is worth based on their own experience. A law firm specializing in traffic offenses, for instance, might decide that leads with more than three traffic violations are worth an average of $100. A solar installer might be willing to spend $80 on leads in a certain zip code with houses over 2,000 square feet. The point is that buyers get to rely on their own industry knowledge and algorithms to determine the value of a certain lead, at which point they place their bids and the winner gets the “post,” or the rest of the lead information.
There’s a reason the broader lead distribution industry is racing to adopt ping post. In short, the system allows both lead suppliers and lead buyers to maximize their revenue potential. Lead suppliers can take the highest bid, but they’re also incentivized to keep quality high, as any dip in quality will be reflected in bids. Lead buyers get leads with clearer intent, and the information provided in the ping helps them target their audience more precisely, maximizing their conversion percentages and driving increased revenue.
Recognizing the power of ping post, Lead Prosper has made it a cornerstone of our platform. Because we don’t believe in holding features ransom, every Lead Prosper customer has access to the following powerful capabilities that help them make the most of the ping post lead distribution system:
1. Highest bidder
If you’ve ever purchased something on eBay (or any auction site, for that matter), you’ll find the highest bidder feature to be self-explanatory. When a supplier pings their lead buying network with a small amount of information about a lead, the buyer that’s willing to pay the most for the complete lead will win the sale. Highest bidder ensures that the lead goes to the buyer who values it the most, maximizing revenue for the seller.
2. Bid penalty
Lead suppliers generally want to take the highest bidder, but they can also create rules to deal with exceptions. Say a customer is winning bids and buying all of a seller’s pings, but the end of the month arrives and that buyer charges back 30% of those leads. That’s a huge percentage of the total profit, and it means that the seller might have been better off selling to a 15% lower bidder that isn’t likely to charge back. Our bid penalty feature allows sellers to automatically penalize the bids of certain buyers who are known to be unreliable. Sellers can pick the percentage of the penalty, allowing them to plan ahead for charge backs and protect relationships with their best customers. Thanks to our own customers for requesting this feature and helping improve the Lead Prosper platform!
3. Daily average
Ping post allows sellers to optimize their revenue over the short term, but it’s also important to maximize returns for the long haul. Our daily average feature allows sellers to prioritize their best customers over a buyer whose bids fluctuate wildly from one lead to the next. For example, if a buyer who normally offers $30 bids $100 for a lead, sellers might still choose to do business with a customer that offers $50 but does it consistently. Selling to bidders with the highest daily average helps sellers maximize long-term returns by keeping their best customers happy with most of the leads.
4. Filters and lead routing
To help sellers get the most out of ping post, the Lead Prosper platform allows them to define certain rules that must be met before a lead can be sold. A minimum asking price is a common parameter, meaning a high bid will only win a lead if it’s greater than the minimum amount designated by the seller. Lead sellers can also create filters using any field to only show potential leads to buyers that they know will be interested. Filters could be location-based, such as state or zip code, or based off answers to specific questions, such as a loan interest rate or the number of solar panels a consumer might be looking for.
5. Easily integrate with Lead Exchanges/Marketplaces
Ping post allows lead sellers to choose from a range of bids on a lead, but they need lots of offers to truly take advantage of the highest bidder feature. For sellers that don’t have a vast network of clients or would prefer not to manage one, we’ve helped our clients easily integrate with several of the most popular ping post marketplaces including PX, eLocal, and DMS Exchange. These tools effectively broaden the reach of both sellers and buyers without requiring any additional effort. Keep an eye out for our upcoming video tutorials on how to set up your Lead Prosper account to work with these marketplaces and more.
For lead generators, the advantage of ping post is simple; competition between buyers drives up the price of a lead. At the same time, sellers vet their leads more carefully and deliver the highest quality in order to earn the highest bids. The good news is that these practices benefit all parties involved, including the leads who are more likely to be matched with the products or services they’re interested in.
As ping post continues to gain broad adoption, we’ll keep listening to the feedback of our users and adding features that help them capitalize on the latest trend in lead distribution.