Marketplaces, Lead Generation, and Brokerages

The brokerage model is what we employed at Fundera. There are several distinctions between brokerages and marketplaces, but a key one is automation versus people-intensive. Marketplaces are fully automated. You can complete a purchase as a buyer without ever speaking with a person. Everything is magically taken care of for you by software. But in i... See more

There are many other products where a brokerage model is required to facilitate a transaction such as online insurance and mortgage agencies. Usually we find these in complex financial products that have some type of regulatory or compliance component. These transactions simply do not work without a person helping a customer along, there is just to... See more

The best lead generation companies usually have some combination of a distinguished and highly trusted brand and a proprietary channel or value proposition they use to acquire customers that competitors cannot replicate. These companies typically have staying power and defensibility, are highly differentiated, and immensely more valuable than compe... See more

The downside of lead generation businesses is that they can be a race to the bottom if they're in a crowded and competitive market. The barriers to entry are essentially aggregating supply (i.e. buyers of leads or businesses willing to pay for new customers) so there is little in the way of defensibility. The other downside is that they are very tr... See more

The downside of lead generation businesses is that they can be a race to the bottom if they're in a crowded and competitive market. The barriers to entry are essentially aggregating supply (i.e. buyers of leads or businesses willing to pay for new customers) so there is little in the way of defensibility. The other downside is that they are very tr... See more