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Understanding the "Bid until Break-Even Point" Feature in Lead Prosper Ping Post Exchange
Lead Prosper offers a unique feature called "Bid until Break-Even Point," which allows lead sellers to maximize their revenue potential while ensuring that leads are sold without incurring losses. In this article, we will delve into the details of this feature and how it can benefit lead sellers.
What is "Bid until Break-Even Point"?
Enabling the "Try all buyers until bid-break-even point" feature in Lead Prosper means that the system will make multiple attempts to sell a lead until a breakeven point is reached. This feature is especially useful when the highest bidder fails to validate or accept the lead for various reasons.
How Does it Work?
Here's a step-by-step explanation of how the "Bid until Break-Even Point" feature functions:
1. Initial Bid: When you post a lead for sale, it's initially offered to the highest bidder. This bidder is referred to as "Buyer 6" in our example.
2. Validation and Potential Failure: Sometimes, the highest bidder may fail to validate or accept the lead due to validation issues, duplicate checks, or other reasons.
3. Next Eligible Buyer: Instead of accepting the revenue loss, the system will automatically attempt to sell the lead to the next highest bidder whose Raw Bid is still greater than or equal to the original Bid After Margin (BAM) that was originally provided to your Lead Supplier.
4. BAM + Penalty: The system determines the next eligible buyer based on their BAM + Penalty. This value helps prioritize buyers in descending order.
5. Continuing the Process: If the lead fails to be accepted by the next eligible buyer (in our example, Buyer 3), the system will keep trying with subsequent eligible buyers based on their Raw Bids.
6. Repeat Until Break-Even: This process continues until a buyer accepts the lead, or until the breakeven point is reached. In our example, the breakeven point is set at $48.75.
Example:
Let's consider our example chart with different buyers and their bids:
| Buyer | Raw Bid | Margin | Penalty | Bid After Margin (BAM) | BAM + Penalty | Actual Revenue |
| 1 | $50.00 | 20% | 45% | $40.00 | $22.00 | $10.00 |
| 2 | $40.00 | 5% | 30% | $38.00 | $26.60 | $2.00 |
| 3 | $55.00 | 10% | 35% | $49.50 | $32.18 | $5.50 |
| 4 | $30.00 | 15% | 0% | $25.50 | $25.50 | $4.50 |
| 5 | $55.00 | 5% | 45% | $52.25 | $28.74 | $2.75 |
| 6 | $75.00 | 35% | 25% | $48.75 | $36.56 | $26.25 |
- Buyer 6 initially placed the highest bid of $75.00.
- If Buyer 6 fails to validate the lead, the system will attempt to sell it to Buyer 3, whose Raw Bid is $55.00 (greater than the original Bid After Margin of $48.75).
- If Buyer 3 also fails, the system will proceed to Buyer 5 (Raw Bid: $55.00), and finally to Buyer 1 (Raw Bid: $50.00).- If the lead fails to be accepted by Buyer 1 as well, and the breakeven point of $48.75 is reached, Lead Prosper will return an "ERROR" response to the lead supplier, indicating that the lead was rejected.
The "Bid until Break-Even Point" feature in Lead Prosper is a valuable tool for lead sellers to maximize their revenue potential while minimizing losses. It ensures that leads are continuously offered to eligible buyers until either a sale is made or the breakeven point is reached, providing a smart and efficient way to manage lead sales.