There is no secret that the whole industry is in a spin and companies that reaped incredible growth and profits are now reading a different story. Both lead sellers and buyers are feeling the common industry pain that many of us are all feeling. Many companies have re-focused and are finding ways to grind through these tough times. Aside from all that Jazz there are a few companies that I have noticed recently that are focused on the up keep of their public perception. The question is if it is spin or a winning match?

Here is the first instances: LeadPoint, the dominant lead exchange sent out a release last week touting that they sold over 4 million leads in 2007. With a number of rumors about LeadPoint looking to liquidate and then more recently possibly picking up a little financing from an old angel, was this release for the big media companies possibly looking to buy up growing businesses? I don’t know but what do you think about these statements?

…today posted outstanding results for 2007, including an 81 percent jump in leads purchased over 2006, despite the economic downturn…

The strength of this platform, which benefits both buyers and sellers of leads, has widened LeadPoint’s market share…enabled all of its lead verticals, including mortgage leads, to continue rapid growth while many in the industry saw their business decline during the ongoing mortgage crisis.

“We flourished in 2007 because the lead exchange model allows buyers to target high potential consumers that match the types of loans and other products they offer,” said LeadPoint Chief Executive Officer Marc Diana. “When buyers can specify the exact price and criteria of a lead before purchasing it, they diversify their risk and are better able to weather downturns in the market.”

Is this spin or just a little positive PR or both? I think both, but the sunny reflection of 2007 seems to overlook the the current market place and the continued struggle of the industry and its buyers. I have been told by a number of sources and confirmed by a seeing one price sheet that they are giving flat rate prices to minimal amounts of leads. Typically leads would be discounted and given a flat rate based on volume, today it seems lead prices in the teens are now given to small orders too. This to me doesn’t reflect bullet proof model, especially when they have chosen to not even implement the bidding on select orders. I do want to note that LeadPoint has always facilitated the buying and selling of quality leads and that has never been a question. If you are a buyer and not buying from LeadPoint I suggest you give them a shot.

The second is a little harder to justify, but I am going to throw it out there and get your opinion on it. Recently a number of articles have come out about lending companies that have reduced their online ad budgets. This company is not rumored to be looking for liquidation or for having received an financing, but they have been in the news and blogs for cutting their ad budget and eliminating their affiliate program.

When asked why they cut their ad spend a LendingTree spokeswomen was quoted in a News.com article saying…

“With the fed changes in January, we were driving natural traffic. It’s smarter for us,” said Vail, whose Charlotte, N.C., company can pay an average of $2.70 per click for a search engine listing on Google or Yahoo, according to industry estimates.

Many of their adjustments wisely came prior to the fed cut rate and yes organic traffic and paid traffic for that matter received a nice boost from the fed cut, but is this just spin to put the company in the best light? Some people may perceive cut back in ad spend as a sign for an unhealthy company and may scare unsavvy stock holders. Was this spin or win or both?

In my opinion these two companies are making moves many other companies make time after time. Simple up keep of their public perception for one reason or another.

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