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Pay Per Lead

What Is Pay Per Lead?

Online advertising payment model in which payment is based solely on qualifying leads.


Information

In a pay per lead agreement, the advertiser only pays for leads generated at their destination site. No payment is made for visitors who don’t sign up.

A lead is generally a signup involving contact information and perhaps some demographic information; it is typically a non-cash conversion event. A lead may consist of as little as an email address, or it may involve a detailed form covering multiple pages.

One risk to the advertiser is the potential for fraudulent activity by incentivized 3rd-parties or marketing partners. Some false leads are easy to spot. Nonetheless, it is advisable to make a regular audit of the results.


Sales Leads and Marketing Leads

There are two types of leads that advertisers can buy in the lead generation market: sales leads and marketing leads.

Sales leads are generated on the basis of demographic criteria such as FICO score, income, age, HHI, etc. These leads may be exclusive or non-exclusive (sold to multiple advertisers). Sales leads are typically followed up through phone calls by the sales force and are commonly available for a wide range of verticals including mortgage, insurance and home services.

Marketing leads are brand-specific leads generated for a unique advertiser offer. In direct contrast to sales leads, marketing leads are sold only once. Because transparency is a necessary requisite for generating marketing leads, marketing lead campaigns can be optimized by mapping leads to their sources.

In recent times, due to the growth of transparency in the online lead generation market, the marketing leads segment of online lead generation segment has grown rapidly. Fortune 500 marketers, non-profit organizations and political candidates such as the 2008 Obama campaign are using CPL advertising to build e-newsletter databases, community sites, and other acquisition programs with consumers that are passionate about their brands/causes.


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