Comments on: Another Exchange Joins The Mix, Reply.com http://blog.leadcritic.com/featured/another-exchange-joins-the-mix-replycom The Home for Lead Industry News & Opinion Wed, 17 Mar 2010 15:42:02 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: LEADCRITIC | Mortgage Leads News and Opinions http://blog.leadcritic.com/featured/another-exchange-joins-the-mix-replycom/comment-page-1#comment-307050 LEADCRITIC | Mortgage Leads News and Opinions Thu, 30 Jul 2009 15:25:31 +0000 http://blog.leadcritic.com/reply/another-exchange-joins-the-mix-replycom#comment-307050 [...] is one relatively new attempt. The first lead exchange remains solvent, but has required numerous rounds of funding to do so. The [...] [...] is one relatively new attempt. The first lead exchange remains solvent, but has required numerous rounds of funding to do so. The [...]

]]> By: LEADCRITIC | Mortgage Leads News and Opinions http://blog.leadcritic.com/featured/another-exchange-joins-the-mix-replycom/comment-page-1#comment-144284 LEADCRITIC | Mortgage Leads News and Opinions Thu, 09 Oct 2008 04:17:46 +0000 http://blog.leadcritic.com/reply/another-exchange-joins-the-mix-replycom#comment-144284 [...] it. Ultimately, there have only ever been a few lead exchanges in existence. There is one relatively new attempt. The first lead exchange remains solvent, but has required numerous rounds of funding to do so. The [...] [...] it. Ultimately, there have only ever been a few lead exchanges in existence. There is one relatively new attempt. The first lead exchange remains solvent, but has required numerous rounds of funding to do so. The [...]

]]> By: A Lead Buyer http://blog.leadcritic.com/featured/another-exchange-joins-the-mix-replycom/comment-page-1#comment-37704 A Lead Buyer Sat, 31 May 2008 01:55:41 +0000 http://blog.leadcritic.com/reply/another-exchange-joins-the-mix-replycom#comment-37704 I just don't see room for several exchanges. I buy from Leadpoint and Root. Leadpoint has good quality and provides some decent volume. Root does neither at the moment for us. I am not comparing Root to Reply but are there enough quality sellers to be able to support 3 exchanges? I doubt it. Selfishly as a buyer I sure hope that the volume and the quality are there. If so I will buy from all 3 but to date I just don't see it. GOod luck to Reply.com and if it works I will be a buyer on your network. I just don’t see room for several exchanges. I buy from Leadpoint and Root. Leadpoint has good quality and provides some decent volume. Root does neither at the moment for us. I am not comparing Root to Reply but are there enough quality sellers to be able to support 3 exchanges? I doubt it. Selfishly as a buyer I sure hope that the volume and the quality are there. If so I will buy from all 3 but to date I just don’t see it.

GOod luck to Reply.com and if it works I will be a buyer on your network.

]]> By: Jah Rastafari http://blog.leadcritic.com/featured/another-exchange-joins-the-mix-replycom/comment-page-1#comment-37545 Jah Rastafari Fri, 30 May 2008 15:10:12 +0000 http://blog.leadcritic.com/reply/another-exchange-joins-the-mix-replycom#comment-37545 The problem with the exchanges, if there are going to be many of them, is that there is no shared standard for exchanging data between them. This is beyond a technology problem, although that's not to say someone won't solve it. Suppose that someone proposed a common data format and all exchanges agreed to use it, call it LXML. Lets suppose the exchanges even agreed to be bound by it, so that the bid ask spread for a given set of filters was the same for all exchanges at the same time. There are 2 issues. The first is that, even on a single exchange, buyers rarely buy on the open market, they typically buy only from a subset of sellers. If they aren't buying on the open market from one exchange, why buy on the open market from multiple. The sellers (the good ones) typically profit from this lack of liquidity - they sell where the prices for their product are highest, so they aren't going to help the lead buyer pay less for their product. Second, suppose that lead exchange A is very scrupulous about vetting its buyers, but exchange B is not, and there are recyclers signing up at exchange B. Now B buyers have access to A leads, and A sellers start complaining about their lead providers saying there is recycling going on. Unfortunately, there's not much A can do about it since the offenders are on B's exchange. Ultimately, the fungibility issue is still out there - leads are not securities, they are not even commodities (although they are more like commodities with a very short shelf life). In the commodities markets there are regulators doing tests on grain to determine what quality it is, etc. This kind of regulation (third party, scientific) would be required to clean up the lead exchange markets. Unfortunately, the intent of a person filling out a lead gen form is not as easy to measure as the quality of a ton of corn. The problem with the exchanges, if there are going to be many of them, is that there is no shared standard for exchanging data between them. This is beyond a technology problem, although that’s not to say someone won’t solve it. Suppose that someone proposed a common data format and all exchanges agreed to use it, call it LXML. Lets suppose the exchanges even agreed to be bound by it, so that the bid ask spread for a given set of filters was the same for all exchanges at the same time. There are 2 issues. The first is that, even on a single exchange, buyers rarely buy on the open market, they typically buy only from a subset of sellers. If they aren’t buying on the open market from one exchange, why buy on the open market from multiple. The sellers (the good ones) typically profit from this lack of liquidity – they sell where the prices for their product are highest, so they aren’t going to help the lead buyer pay less for their product. Second, suppose that lead exchange A is very scrupulous about vetting its buyers, but exchange B is not, and there are recyclers signing up at exchange B. Now B buyers have access to A leads, and A sellers start complaining about their lead providers saying there is recycling going on. Unfortunately, there’s not much A can do about it since the offenders are on B’s exchange.

Ultimately, the fungibility issue is still out there – leads are not securities, they are not even commodities (although they are more like commodities with a very short shelf life). In the commodities markets there are regulators doing tests on grain to determine what quality it is, etc. This kind of regulation (third party, scientific) would be required to clean up the lead exchange markets. Unfortunately, the intent of a person filling out a lead gen form is not as easy to measure as the quality of a ton of corn.

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