[ovoxo]

Although this sounds like a decent idea, the challenge with it is that you're assuming a couple of things:

1) The start-up acquiring the lead list has the ability to progress the deals to closure.

2) The start-up acquiring the lead list is able to appropriately break-down their revenue in an easily audit-able/non-modifiable manner to demonstrate which $ came from the acquired lead list(s).

This type of thing may be an option for these guys going forward (once they figure out the kinks), but I think they're doing the right thing right now by charging up-front.

[prayag]

Excellent points:

>1) The start-up acquiring the lead list has the ability to progress the deals to closure.

We help start-ups figure out a process for doing sales. Most start-ups have some idea of how they want to do their sales and we fine tune the process with them.

>2) The start-up acquiring the lead list is able to appropriately break-down their revenue in an easily audit-able/non-modifiable manner to demonstrate which $ came from the acquired lead list(s).

We also provide monthly reporting on the response rates and so on and it helps the start-ups to understand what their ROI on the process is. In general, the money we are charging is small enough that its always ROI positive.

[ovoxo]

Hey Prayag,

Wasn't implying that your service doesn't provide benefits. I actually believe the exact opposite to be true.

What I'm saying is that it doesn't make sense for you guys to do a revenue split based on how many of the leads closed since you would then be 100% reliant on the lead list purchaser's ability to close the deals (and track each dollar received from the leads).