TechCrunch analyzes Root.net in a recent post.
Root.net is a very interesting idea. For a year or so now I’ve been thinking about how lead generation on the web is not efficient enough. Working on Yield Manager for Right Media has shown me what kind of benefits can be had when a marketplace has an efficient platform.
Currently, a lot of advertisers pay publishers on a CPL (cost per lead) basis. As a publisher though, are you getting the maximum payment possible for that lead? As an advertiser, are you paying too much for that lead? Could you get cheaper leads elsewhere?
Basically the market has a lot of direct relationships which are inefficient.
Throw a marketplace in the middle, and the true monetary values of those leads will become apparent. Advertisers will have to compete for leads I assume, meaning it could benefit publishers. Yet, it also benefits advertisers to have a place to find more leads from multiple publishers.
I wish Root.net luck, as I think it is a concept that will take some work, but there are some very talented people involved in the company, so they probably have a great chance at succeeding.
Well, yes and no. There’s a marketplace already, simply by the nature of buying and selling the leads, right? If a company prices their leads out of the market, well, then, the value of the lead shows itself. One could argue that a differently structured marketplace could change the value of the leads. But certainly root.net’s marketplace already exists, in the free market. This is simply a gathering place within that market.