The auto-bid system allows brokers to set a maximum amount they are willing to pay for each lead, but will only charge a winning bidder £1 more than the next highest bid.
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For example, if a broker bids £52 for a lead and the next highest bid is £30, the auto-bid system will automatically charge the leading bidder £31.
Paaleads.com said this would remove the need for brokers to spend time checking and changing their bid prices. All new and current users of the bidding system would be automatically enrolled in the auto-bid service.
Vanessa Blount, head of paaleads.com, said: “We know lead prices fluctuate on a weekly, daily and even hourly basis, making it difficult for advisers to keep track of how much they need to pay in order to secure leads. Pay too little and they will receive no leads, but too much meant, at times, they were overpaying in comparison to other bidders.
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“We are taking the focus off the administration of the account and automating it as much as possible. There are huge savings to the broker in terms of money and time, as they don’t have to check their bids regularly. We don’t want leads to go out for more than necessary. Brokers don’t need to be number one; they just have to be available at a reasonable price.”
Thomas Reeh, chief executive of blackandwhite.co.uk, commented: “I think this is a great enhancement to the system and will definitely help smaller brokers. Anything it can do to help that end of the market is to be welcomed.”
