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I've been brainstorming a lead-gen business model, but the more I think about, the more possible ways to structure it I come up with.
I would love some feedback from anyone with lead-selling experience.
Here are the different models I have come up with:
1. The simple way: Sell all leads to one company, charge per lead generated. Prospect gives me information, I forward it on to the company. Simple, easy.
2. The "when business compete, you win" structure: Collect prospect information and invite more than 1 company to submit a quote for the prospect. I have thought of a couple ways to do this one, though:
2a. Charge a small amount for each company to submit a quote.
2b. Make it free to submit a quote, but the winning company pays either a % fee of agreed upon work or a flat rate.
The problem with #2a is that companies probably wouldn't be willing to pay to submit a quote when there are also other companies submitting quotes. There's always going to be a losing company in this case, so they might be reluctant to agree to this model.
The problem with #2b is that once the companies can contact the prospect, it becomes very easy for them to settle with the client outside of my system. Then, the company can say "your lead didn't pan out for us" and the prospect can say "I didn't like any of the quotes".
Of course, I can try to hide as many of the contact details as possible, but really once the company can contact the propect in any way (even in their quote) they can say something like "Just visit our website/call us and we'll take it from there". And at that point, they haven't paid for the lead and won't, of course.
#1 seems like the easiest to implement and preferred also by the lead-buying company, but I think #2 would be the prospects' preferred choice. They can get quotes from different companies and choose the one they like the most.
#2 would also be preferred to me - the lead price would be lower, but I would be selling it to more than 1 company, making it possible to be more lucrative.
However, how do I protect myself and the information that I generate in #2? Is it possible?
Or does #2 just not work in the real world?
I would love some feedback from anyone with lead-selling experience.
Here are the different models I have come up with:
1. The simple way: Sell all leads to one company, charge per lead generated. Prospect gives me information, I forward it on to the company. Simple, easy.
2. The "when business compete, you win" structure: Collect prospect information and invite more than 1 company to submit a quote for the prospect. I have thought of a couple ways to do this one, though:
2a. Charge a small amount for each company to submit a quote.
2b. Make it free to submit a quote, but the winning company pays either a % fee of agreed upon work or a flat rate.
The problem with #2a is that companies probably wouldn't be willing to pay to submit a quote when there are also other companies submitting quotes. There's always going to be a losing company in this case, so they might be reluctant to agree to this model.
The problem with #2b is that once the companies can contact the prospect, it becomes very easy for them to settle with the client outside of my system. Then, the company can say "your lead didn't pan out for us" and the prospect can say "I didn't like any of the quotes".
Of course, I can try to hide as many of the contact details as possible, but really once the company can contact the propect in any way (even in their quote) they can say something like "Just visit our website/call us and we'll take it from there". And at that point, they haven't paid for the lead and won't, of course.
#1 seems like the easiest to implement and preferred also by the lead-buying company, but I think #2 would be the prospects' preferred choice. They can get quotes from different companies and choose the one they like the most.
#2 would also be preferred to me - the lead price would be lower, but I would be selling it to more than 1 company, making it possible to be more lucrative.
However, how do I protect myself and the information that I generate in #2? Is it possible?
Or does #2 just not work in the real world?
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