Mar 20, 2009

What Does It Mean "Pay Per Lead"?

The pay per lead advertising model is an advantageous alternative to the pay-per-click and pay-per-sales systems that are also functional online. This means that the advertiser is charged only for the leads generated at the web site that serves as the point of destination. In case a visitor searches the site but doesn't sign up, there is no payment involved.

The lead consists of the email address, and the demographical data of a web site user. Depending on the form of lead, some may require only an email address while others will need extensive details for sign up purposes.

The only problem with the pay per lead model is that it has caused fraudulent actions in repeated cases. Malevolent competitors can often create false leads in order to cause money loss for a certain advertiser and thus lower the competition level. Fortunately, false leads are not that difficult to identify and those business owners that rely on the pay per lead system will regularly perform an audit of the results. For certain web developers, pay per lead programs are a source of income, because they pay a web site owner a certain commission for every created lead.

Pay per lead programs are in a rather close competition with pay per sale variants; while with the former you get a small commission paid for every referral, with the latter, you only get paid when a sales occurs.

Market studies tend to indicate that the pay per lead has been more successful and more rewarding in terms of profit. This explains the importance attributed by investors to all sorts of pay per lead marketing strategies. Hence, with the ads for pay-per-lead free offers that you display on the site, you do clients a service, and also generate a revenue.

Any web site owner with an interest in using pay per lead programs in addition to the regular web page, newsletter or email should check the reviews on the programs that promote and rely on the pay-per-lead system.

Reviews of pay per lead programs make a great way to stay informed and learn which pattern is more advantageous. In comparison the pay per click system, the pay per lead seems to bring more advantages, yet, we should not ignore the fact that the two systems rely on different advertising tools and principles.

1 comment:

Anonymous said...

Hey, just want to say hi. I'm new here.