Impact of Economic Shifts on Lead Generation
May 25, 2006
Last month over at Digital Moses, David Rodnitzky asked the question, "Is online lead generation bubble proof?" It's worth the read, but two points he makes are that lead generation allows advertisers to manage risk in acquisition and lead generators are somewhat insulated against the effects of a bursting bubble dependent on startups.
An interesting point Rodnitzky touches on is the counter-cyclical nature of some lead gen verticals. That is, there are industries, like education, that grow while the economy's growth slows or contracts. For lead generation companies, new and alternative markets are always good for protecting cash flow and potential growth. But, developing a new vertical can be time consuming and costly.
One of the benefits of LeadPoint's platform is the reduced ramp-up time into new verticals. For each new, or existing, vertical there's a built in distribution network in place. That is, there's a pool of buyers ready and waiting to take leads. The risks of getting into a new lead space (accounts receivable, setting pricing, demand/volume, etc.) and the costs of developing and managing client relationships are significantly reduced. There's also all the technical benefits and savings, but that's a topic for another post.
