Market-driven (i.e. “auction”) pricing for leads is growing in popularity. The best and most prominent example of this is found in the proliferation of lead exchanges like LeadPoint and Root Exchange, where lead buyers set their own bid prices and purchase leads based on their performance. LeadPoint’s Michael Rosenberg breaks it down nicely in his recent blog post “Auction Model Moves Into Lead Generation.”

But lead exchanges aren’t the only place where you can “name your own price” for leads.

Earlier this year, DoublePositive launched a Name-Your-Price For LIVE Hot Transfer Mortgage Leads application, which lets lead buyers determine the price they are willing to pay for a mortgage lead with very specific filter criteria. Much like buying keywords on Google or Yahoo, the price for a specific LIVE Hot Transfer is based on the supply of and demand for that lead. Lead buyers actually compete with each other by bidding on LIVE Hot Transfers. In fact, our pricing for mortgage leads was actually market-driven before we launched the online pricing wizard, but now we’ve handed over the pricing engine to lead buyers directly so they can see what the going price is for a lead at any point in time.

So why is this important to lead buyers? Well, it means that DoublePositive doesn’t set an arbitrary price-point for the LIVE Hot Transfer Leads we sell, so you can rest assured that you are always getting the true, fair market-driven price. With this model, we’ve basically said to lead buyers, “Hey, you may not think that a lead is worth x-dollars, but your competitor does.”