The idea of lead exchanges is hardly new. The idea has been around for a while, yet most many companies who tried to set up a lead exchange have failed. This has made many people skeptical of the idea of working lead marketplaces. Nevertheless, looking at the online lead generation industry, it’s easy to see that the industry is plagued by inefficiencies that could be reduced by a well-functioning lead exchange.
Many publishers, buyers and lead generation companies are constantly looking for new ways to do the same things: Connecting buyers, setting up ping trees, building out campaigns and forms. This has resulted in a lot of overlap in labor- and time-intensive processes. Few players find their competitive advantage because everybody is too busy doing the same things. Moreover, labor-intensive technical processes make it harder for many publishers to expand into new verticals, precisely because every vertical has different metrics and technical requirements.
Lead Marketplaces Improve the Situation
An online lead exchange, such as LXP, connects buyers and sellers in multiple verticals while taking care of the administration and technical integration. This kind of aggregated business model is much more efficient because it guarantees exchange users to tap into a vast amount of buyers and publishers, as well as giving them access to leads in multiple verticals. By using lead exchanges, many lead gen players could save themselves the time and hassle of learning and implementing the metrics of a new vertical, connecting buyers and their different technical requirements, building out ping trees, etc. In short, lead exchange can make the online lead gen industry much more efficient and innovative because marketers will be able to focus on what they’re good at: marketing. LXP particularly built on the 4 pillars of quality, transparency, service and stable pricing which offering advanced lead exchange with top service.
- Added Value
Lead exchanges work because of added value. LXP is continually increasing functionality that automates the lead exchange process. Thanks to various quality control and lead scoring mechanisms, LXP is able to guarantee both publishers and buyers high lead quality. Our QIQ system scores leads based on 31 parameters taking into account different variables, giving a comprehensive insight into the quality of leads. Moreover, external integrations, such as LeadID, eBureau, BriteVerify and others, control and verify the accurateness of lead data, eliminating fraudulent or non-valid leads. This focus on quality actively increases transparency by making lead sources and quality visible to all LXP users. In addition to providing lead IDs and publishers IDs as quality seals, LXP users can gain insight into the type of traffic that the lead was generated from, as well as the overall performance of generated traffic. If a platform can take care of all the technical integration for buyers and publishers and at the same time offer comprehensive tools that guarantee lead quality and transparency, lead exchanges can work more efficiently than direct contact.
- Stable Prices based on supply and demand – A well-functioning lead exchange will avoid fluctuating prices by setting bottom and ceiling prices, ensuring that prices only vary within a reasonable price frame. In terms of lead value, LXP functionality works in a 3-dimensional model that allows maximization on all levels. First and foremost, higher lead values are achieved through a bidding model in which leads go to the highest bidder. Moreover, QIQ and other lead verification tools give price predictions based on lead quality scores. LXP also includes a buyer tier system which automatically places buyers in a tier according to their rating, matching the right publishers and buyers. Based on supply and demand, prices cannot fluctuate too much because underbidding buyers will not be able to obtain leads. Therefore, LXP is able to keep pricing fairly stable. These measures have resulted in a very high acceptance rate of leads and a very low unsold lead inventory (over 90% of leads are sold).
- Integration of technical complexities – LXP handles leads in milliseconds, and is able to ping leads to buyers as soon as they are generated, guaranteeing immediate delivery. The technical complexities of a lead exchange are quite demanding and require an advanced web development team. Through the direct connection with LXP, affiliates and buyers can operate more efficiently by avoiding complex technical integration such as connecting buyers, setting up campaigns, building out ping trees and APIs, etc., which are very time-consuming processes that hinders many affiliates from expanding into new verticals.
- Every lead is unique – Many people are skeptical of lead exchanges because leads don’t have the fungibility of commodities and are harder to grade. But this opinion rests on a misunderstanding that lead exchange is just a mere transaction of a product between buyers and sellers. Every lead is unique and should be handled as such. LXP provides exchange participants not only with advanced technical tools, but also with support, content and customer services. Lead verification and quality seals can give insights into lead origins and allow leads to be put into categories according to their scores and ratings. This allows LXP users to obtain certain guarantees regarding the quality of their leads. Again, lead exchange is not just a mere transaction between buyers and sellers. Moreover, by making the source of leads transparent, as well as scoring lead quality, leads can be categorized and graded to a certain extent.
For ReviMedia, 80% of lead generation comes down to technology. Focusing on technical complexities in automation and qualifying has already resulted in significant improvements in efficiency, lead quality and the overall lead gen process. LXP has great potential to become a far-reaching, sophisticated marketplace, and has already started establishing itself in the lead gen market. At this point, LXP has connected seven verticals (automotive, auto insurance, life insurance, home insurance, health insurance, pet insurance and disability insurance) with many more to come very soon.