A Zero Sum Game with Lead generation

Online lead generation is thriving. There are now publicly traded lead gen companies, like Quinstreet (valued at almost $500M) and BankRate (valued at $2.4B); a bi-coastal conference – LeadsCon – that now attracts almost 3000 people per conference and was recently acquired in a ‘huge buyout’; and even a silly LinkedIn group that was founded five years ago now has 39,000 members interested in online lead gen!

In sum, lead gen is no longer the ugly step-sister that no one wants to talk about – it’s an established, multi-billion dollar industry that is an integral part of marketing for many, many businesses. Ironically, however, the success of the industry may not be a good thing for most lead sellers. The maturity of the industry is making it harder and harder for “the little guy” to compete in lead gen.

So is lead gen a ZERO SUM GAME ? (refer to my earlier blog "Few definitions relevant to ZERO-SUM-GAME")

As we see it, lead gen has become a “zero sum” game – as the big players get bigger, they take away opportunities for the small players, until eventually, only the biggest players in each vertical remain. Here are five reasons it’s hard for all but the largest lead sellers to survive today:

1: Lead Quality: Simply selling leads is no longer the end game – the end game is selling “quality” leads, generally described as leads that convert into paying customers. I’ve noted this in the past, but lead gen is really a misnomer to describe this sort of transaction, it’s really just a revenue share. For lead sellers, this means that you have to work a lot harder to get paid, and you are constantly evaluated on your ability to consistently bring in quantity and quality.

2: Economies of Scale: Big lead sellers can negotiate better deals with partners and thus get their leads cheaper. They can also “blend” high quality and low quality leads more seamlessly, which enables them to buy and sell low quality leads that a small player could not.

3: Diminished Arbitrage Opportunities: Five years ago, you could buy “San Mateo bad credit refinance mortgage rates” on Google AdWords and potentially be the only bidder on this keyword. Today, a combination of Ad Words changes that largely eliminate “long tail” keywords and much savvier competition makes it unlikely that you can buy a click for $.05 and make $50. Most online marketing arbitrage opportunities have gone by the wayside.

4: Buyer Knowledge: Most large lead buyers now have sophisticated in-house teams and technology to evaluate their lead sources. In some cases, lead buyers are acquiring their leads directly, through in-house marketing teams. The bottom line is this: five years ago, you could still “fool” some buyers with bad leads, today you can’t.

5: Regulation: Federal and state regulations have made it more expensive to operate a lead selling business. CAN-SPAM is the most widely stated example of regulation that has impacted lead sellers, but there’s also been increased attention by the FTC and proposed regulation in Europe that is taking its toll.

Taking all of these factors together, you need to have a pretty large operation to be a successful lead generator. From lead quality technology, business development teams, smart ad buyers, and talented lawyers. Lead gen just isn’t the domain of ‘mom and pop’ shops out of a garage like it once was.

Few definitions relevant to ZERO-SUM-GAME

ZERO SUM GAME

When the gains made by winners in an economic transaction equal the losses suffered by the losers. It is identified as a special case in GAME THEORY. Most economic transactions are in some sense positive-sum games. But in popular discussion of economic issues, there are often examples of a mistaken zero-sum mentality, such as “PROFIT comes at the expense of WAGES”, “higher PRODUCTIVITY means fewer jobs”, and “IMPORTS mean fewer jobs here”.

GAME THEORY

How to win at Twister? No, but maybe at monopoly. Game theory is a technique for analysing how people, firms and governments should behave in strategic situations (in which they must interact with each other), and in deciding what to do must take into account what others are likely to do and how others might respond to what they do. For instance, competition between two firms can be analysed as a game in which firms play to achieve a long-term competitive advantage (perhaps even a monopoly). The theory helps each firm to develop its optimal strategy for, say, pricing its products and deciding how much to produce; it can help the firm to anticipate in advance what its competitor will do and shows how best to respond if the competitor does something unexpected. It is particularly useful for understanding behaviour in monopolistic competition.

In game theory, which can be used to describe anything from wage negotiations to arms races, a dominant strategy is one that will deliver the best results for the player, regardless of what anybody else does. One finding of game theory is that there may be a large first-mover advantage for companies that beat their rivals into a new market or come up with an innovation. One special case identified by the theory is the zero-sum game, where players see that the total winnings are fixed; for some to do well, others must lose. Far better is the positive-sum game, in which competitive interaction has the potential to make all the players richer. Another problem analysed by game theorists is the prisoners' dilemma.

PROFIT

The main reason firms exist. In economic theory, profit is the reward for risk taken by enterprise, the fourth of the factors of production - what is left after all other costs, including rent, wages & interest. Put simply, profit is a firm's total revenue minus total cost.

Economists distinguish between normal profit & excess profit. Normal profit is the opportunity cost of the ENTREPRENEUR, the amount of profit just sufficient to keep the firm in business. If profit is any lower than that, then enterprise would be better off engaged in some alternative economic activity. Excess profit, also known as super-normal profit, is profit above normal profit and is usually evidence that the firm enjoys some market power that allows it to be more profitable than it would be in a market with perfect competition.

WAGES

The price of labour. In theory, wages ought to change so that the supply and demand in the labour market are always in equilibrium. In practice, wages are often sticky, especially in a downward direction: when demand for labour falls, wages do not fall. In this situation, the fall in demand results in higher involuntary unemployment. Trade unions may use collective bargaining to keep wages above the market-clearing rate. Furthermore, many governments impose a minimum wage that employers must pay.

Firms may choose to pay above the equilibrium wage to increase the productivity of workers. Such so-called efficiency wages may make workers less likely to join another firm, so cutting the employer's hiring and training costs. They may encourage workers to do a better job. They may also attract a higher quality of worker than wages at the market-clearing rate; better workers may have a higher reservation wage (the lowest wage for which they are willing to work) than the market-clearing equilibrium.

In recent years, employers have tried to reduce wage stickiness by increasing the proportion of pay that is linked to the performance of their firm. Thus if falling demand reduces the employer's profit the pay of its employees falls automatically, so it does not have to lay off as many workers as it otherwise would. Performance-related wages can also reduce agency costs by giving hired hands a stronger incentive to do a good job.

PRODUCTIVITY

The relationship between inputs & output, which can be applied to individual factors of production or collectively labour productivity is the most widely used measure and is usually calculated by dividing total output by the number of workers or the number of hours worked. Total factor productivity attempts to measure the overall productivity of the inputs used by a firm or a country.

Alas ! the usefulness of productivity statistics is questionable. The quality of different inputs can change significantly over time. There can also be significant differences in the mix of inputs. Furthermore, firms and countries may use different definitions of their inputs, especially capital.

That said, much of the difference in countries' living standards reflects differences in their productivity. Usually, the higher productivity is the better, but this is not always so. In the UK during the 1980s, labour productivity rose sharply, leading some economists to talk of a 'productivity miracle'. Others disagreed, saying that productivity had risen because unemployment had risen - in other words, the least productive workers had been removed from the figures on which the average was calculated.

IMPORTS

Purchase of foreign goods and services; the opposite of exports.

Rich or Poor? We are only HUMAN !

Disagreements about the optimal level of wealth inequality underlie policy debates ranging from taxation to welfare. We attempt to insert the desires of ‘‘regular’’ Indians into these debates, by asking a nationally representative online panel to estimate the current distribution of wealth in INDIA and to ‘‘build a better India’’ by constructing distributions with their ideal level of inequality.

What’s an acceptable level of income inequality in India? Is the current situation far too unfair, as many who lean to the political left maintain? Would ending tax breaks for people earning more than 500,000 a year constitute “class warfare,” as many on the political right contend? Complex questions, to be sure.

But some surprising insight into these issues comes from a remarkable recent study by Harvard Business Review. You might be surprised by the results, whatever be your political persuasion or net worth.

It states :-

First, respondents dramatically underestimated the current level of wealth inequality. Second, respondents constructed ideal wealth distributions that were far more equitable than even their erroneously low estimates of the actual distribution. Most important from a policy perspective, we observed a surprising level of consensus: All demographic groups—even those not usually associated with wealth redistribution such as Republicans and the wealthy—desired a more equal distribution of wealth than the status quo. The idea which inspired this has been stated in the first lines of this blog. 

In their survey of 5,500 Indians, by asking respondents which of three templates of wealth equality they thought would be best: one representing perfect equality, where the bottom one-fifth of the population owns one-fifth of all wealth, as does the top fifth and every other fifth; one representing the current Indian situation, where the top fifth controls 84% of all wealth, while the bottom fifth owns 0.1%; and one representing the distribution in India, where the top fifth owns 36% and the bottom fifth controls 11%.

Why a Bad Economy is Good for Marriages 

Though not always. Interestingly, men tended to report increased relationship satisfaction only when none of the blame for household financial woes was directed at them. Diamond theorizes that societal pressure on men to be breadwinners (even when their wives contribute significant portions of family income) is still such that any blame directed at them — shared or not with anyone (their spouse) or anything (the national economy) — leaves them feeling less satisfied about their relationship. Yet more evidence of the often cited fragile male ego. Now that is a good point to cherish with. The economic downturn is forcing many unhappy couples to reconsider the financial pitfalls associated with divorce.

It’s a fairly revealing set of results. Despite all the talk about a divided Indians and class warfare, there is a remarkable level of consensus about the ideal wealth distribution across the political spectrum and income levels. The preferred wealth distributions of different party voters were only trivially different—in the direction you would expect—as were the preferences of those making less than 500,000 and those making more than 1,000,000. For all the alleged discord in this country, there’s an amazing amount of real agreement on what “a better India” would look like.

To be sure, liberals and conservatives often have very different ideas about how that ideal distribution should be achieved. But much of the prattle about class warfare these days comes not from mainstream Indians, but rather from those folks who have the most to gain from pointing out differences even when they may not exist: politicians and the media who cover them. So, the question which rises is  "Is Your Mind Over Money?"

WHY COOPERATIVES ARE SIGNIFICANT FOR SOCIAL JUSTICE ??

As it is the  International Year of Co-operatives 2012 the concern rationalizes my thought for the day.  

Throughout the world today, societies are being torn apart due to the fact that various social groups and classes are not getting their due respect from other forces in society. Many societies are lacking social justice which could be seen as equal opportunity treatment of all persons in society. Various institutions have the responsibility to ensure this happens. Yet social justice is absent in many instances.

Cooperatives are based on principles and values that speak directly to the issue of social justice. Most traditional cooperatives follow the seven principles of cooperative identity, promoted by the International Cooperative Alliance (ICA), an Apex organization for cooperatives around the world. These principles call for the practice of democracy, equality, equity and solidarity. Cooperatives also embrace the ethical values of honesty, openness, social responsibility and caring for others.

With these principles and values at the core of cooperative operations, the poor, excluded and marginalized sectors of society are usually served well by cooperatives. The financial sector is one area where this has shown well. Financial cooperatives are some of the largest providers of micro-finance services to the poor. It is estimated that globally, financial cooperatives reach millions of clients living below a poverty line of Rs.75(Seventy five Only) per day. Financial cooperatives thus play a central role in the achievement of an inclusive financial sector that encompasses the poor.

Amul is India's iconic milk brand, but all is not "utterly butterly" with the organization, as internal politics and competition from rival milk co-operatives threaten its dominance in the market. ET Insight gives you a sneak peek into the politics behind India's milk wars. 

Through their commitment to servicing the poor and under-served, financial cooperatives are helping to lessen the burden of poverty.  Financial cooperatives, by providing savings products, help to reduce members’ vulnerabilities to shocks such as medical emergencies. 

Cooperatives have also been instrumental in promoting inclusive development in rural areas, helping to both strengthen and diversify rural economies. Financial cooperatives provide access to credit for members who might not typically have access to the larger savings and commercial banks. This is significant in markets where financial providers are absent owing to poor revenue prospects, high risks, or high transaction costs. This access to financial services often supports the formation of small and micro businesses.

Cooperatives have also been able to strengthen agricultural production and improve access of poor farmers, especially through engaging in fair trade arrangements. Small farmers who struggle to create and sustain businesses of their own are able to increase farm revenues, lower marketing and information-gathering costs, as well as enter into high-value supply chains that they would not be able to do on their own.

THE MIRACLE WATER VILLAGE 

narrates the inspirational story of impoverished farming community in India that reversed its fortunes through its visionary model of water management with the help of cooperatives.

While the need for more research cannot be denied, that which exists supports the idea that, if given the right supportive environment, cooperatives could help in profound ways to achieve social justice, where it is lacking. Empowering cooperatives to leverage their capacity to contribute to social justice requires a sound policy and legislative framework. 

The International Year of Cooperatives 2012, declared by the United Nations General Assembly, is one means to raising awareness. By raising awareness of cooperatives – what they are and what they do – the IYC will empower cooperatives to promote their social justice values and encourage governments to create supportive policy and legislative frameworks, where needed.

Even with this support, the challenge of effective implementation of the cooperative principles and values cannot be ignored. The sound governance of cooperatives depends upon a well-informed and active membership base, dedicated to cooperative values and principles. To sustain the drive of cooperatives for social justice, a strong membership base, bound by the democratic one-member-one-vote principle, is essential to addressing weak or unethical management, capture by local politicians, or other conflicts of interests which could divert cooperatives from addressing social justice issues.

So it lies in the hands of youths of India and Cooperatives to popularize models under NATIONAL COOPERATIVE UNION OF INDIA. 

The Guide to IPL5

I'm predicting the Delhi Daredevils will finally come good and win the Indian Premier League this year (I’ll bet my house on it but i am not going to give my house to you as that house belongs to my landlord).  Still, expect a highly competitive tournament given the fantastic quality of cricketers involved.

Here’s a look at the nine teams and some of the players likely to have a big impact on IPL 5:

 Chennai Super Kings:

It’s obvious, but the main man to watch in this team is India’s captain Mahendra Singh Dhoni, who thrives in the short forms of cricket. Dhoni is the IPL’s most successful captain, and he leads a team that has retained its core players over the years. Chennai Super Kings will be looking to make it three in a row after winning the IPL in 2010 and 2011, and Dhoni will get good support from his wingman Suresh Raina – the top run-scorer in IPL history – and new signing Ravindra Jadeja. Expect Dhoni and his team to be challenging for the four qualifying spots for the final, when home advantage, like last year, could play a part given that the second qualifier and the final will be played in Chennai.

Hot Shot: Dhoni loves the paddle sweep but his specialty is “The Helicopter” – a wristy uppercut wallop.

Deccan Chargers:

The top batsmen often overshadow the best bowlers in the IPL; the crowds love to see big sixes more than anything, after all. But there are a few bowlers who can light up a match, notably Lasith Malinga of the Mumbai Indians. The Deccan Chargers have a bowling star in their ranks with South Africa’s Dale Steyn, the world’s No.1 Test bowler who was signed by the franchise for $1.2 million last year. While T20 is a world away from Test cricket, Steyn has enough nous – and fierce pace – to upset any opposition. The Chargers will be relying on the South African for wickets, especially now that Ishant Sharma has been ruled out of the IPL with an ankle injury.

Hot Shot: The Box Breaker. Just ask New Zealand’s Kane Williamson

Delhi Daredevils:

After ending IPL4 at the bottom of the table, the Delhi Daredevils have recruited extremely well and finally look a major force to be reckoned with. Captain Virender Sehwag had some spectacular innings last season, but his solo efforts were in vain. He’s always one to watch, as is opening partner David Warner. Kevin Pietersen is a marquee signing, though he continues to struggle with spin in the Subcontinent, and Sri Lanka’s Mahela Jayawardene – who incidentally scored the two millionth run in Test cricket history on Tuesday (one for the stats fans) — is on fire in the current Test series against England. But keep an eye out for the relatively unsung Aaron Finch. The 25-year-old Australian, who has played just a handful of T20s for his country, has been in fine form in Delhi’s practice matches leading up to this year’s IPL. The only problem is, with so many international stars in the squad, will he always get a game?

Hot Shot: The Hotel Golf Chip

Kings XI Punjab:

Adam Gilchrist’s best cricketing days are behind him, but boy can he still play. The Australian is arguably the best wicket-keeper batsmen in history, a ferociously good stroke player capable of single-handedly lighting up a game. He has extra responsibility this year after being appointed Kings XI’s player-coach, and his boundless enthusiasm – whether from behind the stumps when keeping wicket, or in front of them when bashing deliveries high into the Dharamsala sky – should prove inspirational to the team. The franchise may rue that all-rounder Stuart Broad has been ruled out, as the England T20 captain would’ve been a welcome addition to the team that won the IPL in 2009, when the tournament was shifted to South Africa.

Hot Shot: The Six – Gilchrist has hit more in the IPL than anyone else.

Kolkata Knight Riders:

Surprisingly enough, Shah Rukh Khan isn’t Kolkata’s key player, though he appears to think so given the amount of time he spends mugging in front of the cameras with cricketers in tow. Calling the Bollywood actor a horrendous cricketer would be an understatement, as this clip shows around 50 seconds in. KKR captain Gautam Gambhir is far easier on the cricketing eye. In 2011, Gambhir went one better than local hero and former captain Sourav Ganguly had ever managed, guiding Kolkata to the play-offs for the first time. Gambhir moved from Delhi to Kolkata last year after being signed for $2.4 million at auction. Let’s see if he can live up to that record price tag. Also keep an eye out for new signing Brendon McCullum, one of the most prolific batsmen in T20 history.

Hot Shot:  Gambhir has plenty. But not the one that got him out three short of a century in the World Cup final last year.

Mumbai Indians:

Sachin Tendulkar, fresh from his 100^th international century, has decided to step down as the Mumbai Indians captain so he can concentrate on his own game, and probably enjoy it more. Good move from the Little Master, who is obviously worth keeping an eye on. Rest assured, you won’t be the only one watching him. It will be fascinating to see how new skipper Harbhajan Singh, pretty much the forgotten man of Indian cricket after being dropped from the national team last year, takes to IPL 5. He has much to prove and is a big character, so he’s the man to watch for the Mumbai Indians, the winners of the Champions League T20 last year. Also watch for Malinga, the most exciting bowler in the tournament and IPL 4’s “purple cap” winner after he topped the bowling charts with 28 wickets.

Hot Shot: The Angry Trout Pout. Bhaji is a master of this look.

Pune Warriors:

This franchise has experienced more upheaval than any other, but it has made possibly the most interesting signing for this season in Australian captain Michael “Pup” Clarke, who has decided to finally join the IPL party after sitting out the first four seasons. Nobody can dispute Clarke’s credentials as a Test and ODI player – he is No.1 in the International Cricket Council’s Test batting rankings and No.8 on the ODI list – but T20 cricket is relatively unfamiliar territory for him. Still, a classy player and one who will bring valuable guidance to a team sadly missing last year’s captain Yuvraj Singh, who is battling cancer. Clarke, however, won’t be available until after Australia’s tour of the West Indies finishes on April 27. In the meantime, there’s West Bengal’s hero Sourav Ganguly, who shifted south last year after being let go by Kolkata Knight Riders. The former India captain has spent most of the past two years in the commentary box, but has he got a few big innings left in him? It’s doubtful, but let’s wait and see.

Hot Shot: Clarke has plenty, but his girlfriend Kyly Boldy seems to be the most popular. Even Ricky Ponting’s wife says so.

Rajasthan Royals:

No more Shane “Warney” Warne, but the Rajasthan Royals are still hanging on to Rahul Dravid, the Indian cricket legend who officially retired from the sport last month with the caveat that he’d stay on for this year’s IPL. T20 cricket isn’t Dravid’s forte – his classiness has never quite matched the brash nature of the shorter form of the game and its pursuit of instant gratification – but who won’t be interested in seeing how he finally bows out? Just imagine the scenes if he scores a century or leads his relatively not a fancied franchise to the title this year? Nobody would begrudge him such a fairy tale, not even his opponents.

Hot Shot: He’s not called “The Wall” for nothing. (He’s also called Jam or Jammy, fyi.)

Royal Challengers Bangalore:

Sorry Virat Kohli, but there’s a clear stand-out performer in this team — last year’s losing finalists – and that’s Chris Gayle. Incredibly Gayle wasn’t picked up at auction last year and only arrived mid-way through IPL4 as a replacement. He then electrified the tournament with some terrifyingly brutal innings, and ended as the leading run-scorer, earning himself the “orange cap.” The big Jamaican is a genuine joy to watch. If you follow one player from any team in the tournament this year, make it Gayle. This man can send the ball soaring handsomely into the air, which is more than can be said for the planes belonging to his boss, Vijay Mallya, the owner of Kingfisher Airlines. Pow!

Hot Shot: The “Gayle Force” armory is full of them. Here’s an over from last year’s IPL, in which a record 37 runs were scored when Gayle was at the crease. Spare a thought for the bowler.

And here goes the schedule for the IPL 5.  MAYHEM !

FC barcelona vs AC milan at Camp Nou for tonight

Facts & stats ahead of this Champions League quarter-final second-leg clash at Camp Nou Siro where Barcelona play host to AC Milan 

Here we go :-  "We can't let them down who come to Camp Nou - says Pepe Guardiola" #FCB  

- AC Milan have always managed to progress to the next round after drawing the first leg of a knockout tie in Champions League or European Cup. On three occasions, they have drawn 0-0 at the San Siro before advancing in the second leg.

- Barcelona's last Champions League defeat in a knockout tie came against Italian opposition ( 3-1 vs. Inter Milan in the first leg of their semi-final clash in 2009-10).

- Barcelona are unbeaten in their last six meetings with AC Milan, winning three and drawing three of these games.

- And since the defeat against Inter, Pep Guardiola's side have lost just once (vs. Arsenal in February 2011), and have scored 60 goals in 22 games.

- Barcelona forward Lionel Messi has scored 30 goals in his last 26 Champions League appearances.

- But Messi has scored just one goal in his seven meetings against Italian opposition in the Champions League, that being a penalty against AC Milan in the group stage of this season's competition.

- Milan's former Barcelona striker Zlatan Ibrahimovic has scored in five of his last seven Champions League games.

- Milan have won just four of their last 16 games in the Champions League.

- Barcelona have taken more penalties than any other team in the competition this season (three).

- And in Milan's nine Champions League games to date this season, five penalties have been awarded, three of which they have conceded to the opposition.

WELCOME EVERYBODY TO CAMP NOU !

Damaged Online Reputation Recovery

Now that is not what a real estate marketing company would like to recover being an Ostrich after reputation damage. Trying to stop a competitor from using trade dress similar to there trademarked theme brand these companies have got an up-close and unwelcome look at the dark side of the internet specially for the clients.

Blogger pals of their well-connected adversary, including one at a major industry website, blasts for being a bully and filing a frivolous lawsuit, often misrepresenting the circumstances. Some posts generated hundreds of angry responses, and anonymous callers began phoning office, leaving scathing messages. At the low point, one person even decided to inject some personal terror into their life by claiming their relatives had been in a serious car accident. Now to recover form such issues is a tough nut to crack. So here it goes this way :-

When misinformation and rumors circulate about your business, it can dominate your company's search engine results and potentially damage your business, says Michael Fertik, founder and CEO of Reputation.com, an online reputation management firm in Redwood City, Calif.

Such companies must advice his clients to grab as much of their "Google Real Estate" as possible. That means reserving the .com, .net and .org versions of URLs and claiming identities on Facebook, Twitter, LinkedIn and local review sites including Yelp, Google Places, Citysearch and Yahoo Local. You might also want to reserve URLs that pair the name of your business with pejoratives like "sucks,". Businesses can use such vehicles to distribute positive, search-engine-optimized information about their companies, which can push down negative information in search results. In such cases, Global Computer Technologies  also creates several new websites optimized with various descriptions of the company, with links back to the main site to further drive down negative results.

But some rumors keep bubbling back to the top always. Since 2005, members of the Social Network family have been battling a persistent falsehood of their image so as the companies with web based networking. The stick rule is that "The nature of our background makes it believable, but it never happened," company president Elwood Martin says. Global Computer Technologies always extend their hands to the benefits of their customers in all possible ways.