Sales people like to sell and marketing departments like to create; so, looking for or determining the quality of leads is really the last thing either of them want to do. And yet, the act of purchasing an expensive list of leads or investing in web marketing ads through Facebook and Google has become one of the most frustrating factors of marketing and lead generation efforts today. This is due to the fact that more than half of the information on leads taken from these lists is wrong, outdated, or irrelevant, and a big waste of time for sales people.
With the emergence of blockchain, industries are discovering a new way to enhance the quality and efficiencies of their services, including LeadCoin, the first blockchain-based lead sharing network. LeadCoin uses blockchain technology to allow businesses to sell their unused leads and buy hot leads from other businesses in real-time. The targets of leads, meaning us consumers, are incentivized to proactively participate and share their needs for products or services.
According to LeadCoin, the web marketing industry led by the duopoly that is Google and Facebook, is consuming budgets without providing the right returns on investment, with only 3% of site visitors turning into paying customers. This isn’t to mention the low conversion rates seen with lead lists many times bought for over $10,000! By using LeadCoin’s method of reselling your leads or buying only relevant and quality leads, businesses can recover their lost marketing budgets. So for example, if you are a client looking for a wedding photographer, but by mistake you “clicked” on the Facebook ad for a wedding videographer, the wedding videographer may call you. After a short conversation, the videographer will understand that the offer is not relevant and, with your permission and more detailed information, he/she will be able to refer you to the photographer you need, while also gaining back some of the money they invested in the ad that got you here in the first place.
Smart contracts are becoming an attractive way to model businesses which rely on trustworthy transactions between parties. Smart contracts are integrated within blockchain technology, as they are a decentralized computer protocol intended to facilitate, verify, or enforce any agreement or accord made with the use of a contract. Building the platform on the blockchain allows LeadCoin to utilize smart contracts to replace the “middleman,” and provide a cost-efficient alternative to advertising. The decentralization of blockchain ensures a collaborative economy where one entity alone cannot control the platform or manipulate any transaction.
LeadCoin recently reached their hard cap of $50 million in its crowd sale, in order to continue growing their platform. While I understand the concept of smart contracts, I’m still not sure why blockchain is necessary for this. You receive payments in the platforms LDC token, which, but I’m not fully convinced that LDC tokens are better than, or will one day replace, FIAT currency. The idea is great, but it still seems like too much of a hassle. They do say “time is money”, and this seems like this process would take too much time from me as both a consumer and as a small business with limited resources. But on the other hand, investing a little time in understanding the process behind LeadCoin could undoubtedly lead to a rise in a company’s ad market value.
Regardless, I think the uses of cryptocurrencies and blockchain technology are moving in interested directions and LeadCoin is definitely an innovative application in the space. I think that removing the ‘middleman’ in such an industry is great progress in making the business world a more fair space.