Lead Generation Question

[scottaj74]

Hi Guys and Gals,

First off, I want to thank everyone for sharing his or her knowledge, experience and opinions here. This forum and its’ members are a great resource and place for those looking to break out of the traditional income methods.

I have several ideas for some website business models, but I’m trying to better understand lead generation, how it works exactly and how to implement it into my business ideas.

For example, let’s say I operate a website that sells widgets. I don’t sell the widgets myself but rather I sell them for people listing them on my “www.widgetsforsale.com†website.

In a lead generation model, would I be best to start with taking inquiries for widgets, calling my widget suppliers finding out the price and then getting back to the customer with a price. Out of each sale I would then take a commission of 8-10%. This seems slow and with lots of running around and phone calls, but it does provide a personal level of customer service for the both the prospective customer and the supplier.

Or….would it be better to figure out prices beforehand, list them on the website and have a fully automated process? When a sale goes through the computer system would automatically take my cut of the sale (again 8-10%) and deposit it in the bank. No as “hands on†with clients, but faster and easier(?) for everyone involved.

To give you more background. I live in an area where skiers come from around the globe to ski. More often than not, they end up renting a car or take the one and only exclusive bus service back and forth to the airports. There is the option of taking the Greyhound as well (aka "loser cruiser"). The airports are roughly 3 and 6 hours away. I was thinking about starting my own bus service that would start at one airport and then drive through to the different resorts dropping and picking up skiers/boarders. The bus would then continue to the other airport and then head back again. The bus could probably do the trip twice daily. Then I thought it might be good to offer an online booking company - much like MJ's limo.com, but more suited to bus lines and van service for this area. I work in the tourism industry and I'm always getting asked about transportation in the area. Seems like an opportunity for someone to snatch.

Now that I write and think this out, maybe it would be best to try both models and see what converts better. My horns are very green with this model so any ideas or feedback are appreciated. - not green, but it has horns.......

 

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[The-J]

I'm doing the lead generation model as well. (My cut will be much, much smaller than 8%)

But that's not lead generation. Lead generation is where you refer sales leads to a company and charge per qualifying lead. For example, I could start a Web service that delivers price quotes for landscaping companies in a given country. I take the lead's information and send it off to a company, who will then provide the price quote. That is lead generation.

What you're looking at for the widgets idea is the affiliate model, where you do the selling and you take a commission for each sale you make.

Both models can be applied to pretty much anything, if you can find a need for their use.

 

[scottaj74]

Thanks "The-J". I'm just trying to get a better understanding of how this works.

How do you protect yourself from having the company taking your lead(s) and running. If the company offering the product/service is then in contact with your lead, what's to stop them from saying the didn't make a sale (when they did)? Is there a contract in place that stipulates otherwise?

I'd like to think that people are generally honest, but.......poop happens.

 

[H. Palmer]

Thanks "The-J". I'm just trying to get a better understanding of how this works.

How do you protect yourself from having the company taking your lead(s) and running. If the company offering the product/service is then in contact with your lead, what's to stop them from saying the didn't make a sale (when they did)? Is there a contract in place that stipulates otherwise?

I'd like to think that people are generally honest, but.......poop happens.

The above problem can be avoided if the lead generator - you - does the sale and do the charging at the same time.
You take your fee and then transfer the rest of the money to the company that offers the service.

Of course this requires pre-sale negotiation with the service provider. And this can only be done with standardized services.
But bus or van transport services should follow that requirement, I guess.

 

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