Thursday, March 22, 2007

Effect of Brand Name on Lead Flow

When is a good thing too much?

Licensing brand names can be good for business; but it can also be bad -- particularly in pay-per-click models. A popular brand like 'American Idol' can work wonders on impressions and clicks but if the lead funnel isn't shaped just right one ends up with a very low conversion rate. The result: extremely high cost-per-sales that risk eroding any or all margin.

Tuning lead flow for brands that attract interest is quite different than generating leads for either targeted, niche or new brands. It turns out you don't want to buy the brand name, you want to buy what the product provides and use the name as leverage. Yes, you get fewer clicks but the guys in finance like the numbers better.

Remember: the product benefit is what ultimately sells.

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