Magazine article Folio: the Magazine for Magazine Management

Reversing the Risk with Lead Generation: How One Publisher Uses a Cost-per-Lead Model to Upsell Clients to Display Buys

Magazine article Folio: the Magazine for Magazine Management

Reversing the Risk with Lead Generation: How One Publisher Uses a Cost-per-Lead Model to Upsell Clients to Display Buys

Article excerpt

PUBLISHERS have jumped on the lead-gen bandwagon as a way to supplement declining revenues, but nevertheless still see their primary models as display or brand-driven. One company, Family Marketing, is using a cost-per-lead model to open doors with advertisers, eventually upselling them to brand advertisers after a lead-gen track record is established.

"Advertisers only pay for something they define as a qualified lead," says Noah Anderson, CEO of Family Marketing, which produces PlanningFamily.com, a content site that's also a lead-gen engine for clients. "The risk is really low, we have a 24-hour out clause and we get them in on a CPL."

Once PlanningFamily.com proves itself as a lead generation partner, Anderson says he's able to "upsell" clients to additional CPM dollars. The "risk" he refers to is an interesting point. Both online display and lead-generation sales are metrics driven, but Anderson sees lead-gen as a softer play for the marketer. "When someone buys on a CPM basis, all the risk is on them. We're switching the risk to us, and then that gives us the chance to prove ourselves as a lead provider and the ability to sell them on the other products at a later date."

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Additionally, he says there's some residual branding characteristics for the marketer when they run a lead gen program. If, for example, 20 out of 1,000 people sign up for an e-newsletter, 980 people were still exposed to that brand's offer. …

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