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Knowledge center

Ridding lead generation of frauds vs. prisoner’s dilemma

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Prisoner’s dilemma is a situation where two incarcerated individuals have to choose between betraying one another and getting a reduced sentence or staying loyal to each other and remaining silent. Each of the inmates can benefit from betraying his counterpart. Conflict strategy prevails over peace strategy; you can gain the most by snitching, and lose the most by remaining silent.

This theory also proves to be true in business, where fighting for your own survival in a hostile environment of fierce competition, can hinder reaching an agreement or cooperation towards development of a market sector.

In affiliate programs, both affiliates and advertisers perceive the network as a medium working for the benefit of each of the sides alike, whereas in case of lead-generation, lack of trust between lead suppliers and buyers seems to be an inherent trait of this sector. Technology provided by the network becomes an important factor and it is essential for effective affiliation.

On the one hand, there are buyers using PPL (pay per lead) payment model, where you have to pay for every lead, and up to 80% of them can be useless. On the other hand, there are suppliers, who are not willing to disclose their methods and their lead sources.

We might and should persuade entities towards working out a common code of conduct and best practice guidelines, but what can bring real results is creating a specialized platform for lead trading. A platform that will not simply fight fraud, but will enforce good quality of leads, on a systemic level. In result, the market will rid itself of frauds and allow for effectiveness-based payment model (paying only for “good” leads).

Fraudulent lead suppliers will have no alternative then, than to obey the rules or quit the business.

Who could take on that mission in Poland?