Earlier we reported that the Velo Holdings Inc, that owns among other things owns Neverblue had filed for Chapter 11 Bankruptcy Protection. This means, for those who don’t know, that the company cannot pay off its debts and thus needs protection to restructure the company. They file for Chapter 11 protection during the restructuring in order to try to save the company.

The question remains, what does this mean for Neverblue and are they going out of business?

The simple answer is: No.
I can’t predict the future, but this does not mean their company is shutting down.

The Good News
Neverblue, from all accounts, is a highly profitable company in itself and has a strong business model. As they pointed out in their response, the company itself is not included in the bankruptcy protection, so they are able to pay all their affiliates on time. That’s the good news, which means that for the time being, you are going to be paid.

The company has been a strong company for many years and continues to be a great part of the industry, service their affiliates, and most importantly has always paid on time.

The Bad News
However, despite this, things are not so simple. Even though they are not  “included” in the Bankruptcy, there are a ton of issues that will come up that will affect the future of the company.  The idea that Neverblue is not going to be affected by it’s parent company’s issues is incorrect. They are owned by that company, and are subject as an asset of the company.

Since Velo Holdings owns Vertrue, which in turn owns Neverblue, the future of the company is in the air and may be for sometime.  This means that anything could happen to the company, including it being sold in order to pay the debts of the parent company. We will not know for a long time what will happen to Neverblue, but more than likely they will be sold in the future, depending on how their parent company restructures. If Velo is not able to restructure this could mean additional issues. It will be up to the courts to determine this.

The Really Bad News

Vertrue, which bought Neverblue in 2007, for all accounts, has not had good year. They seem to be in serious financial trouble and has their credit rating changed to a “D”. According to a report by Bloomberg:

 Vertrue was “at risk of breaching financial covenants early in 2012,” according to the S&P report. “We believe the company may have the capacity to make the $10 million interest payment, but doing so absent a financial restructuring would likely make it difficult to operate the business given prevailing conditions.”

They also suffered a $33M judgement from the Iowa Attorney General last year.

The last bad news is that Neverblue is being sued by Patent Troll Esssociate. This is very unfortunate because it means that Neverblue as an asset may be very hard to sell, even if they are profitable. Very few people want to buy companies that are currently engaged in major intellectual property litigation that could affect the long-term health of the company.

Again, this doesn’t mean that Neverblue is shutting their doors tomorrow, or they will not pay their affiliates.

Update: According to what I am told, “Velo Holdings is the private equity ownership vehicle for Vertrue.”

Online lead generation is a burgeoning industry and a crucial part of marketing a business on the Internet. However, because this is a relatively new industry, it can be challenging to get started and best practices are not well established.  The purpose of this guide is to explain what lead generation is and to educate businesses about best way to go about this process.

What is Online Lead Generation?

 Lead generation is a marketing process to find and nurture consumer prospects until they become paying customers.   To find their ideal consumer demographics, businesses can use media channels such as email, banners, social media, search (pay-per-click & search engine optimization), and co-registrations (sharing registration information with another site). Once potential customers click on these offers and opt in by providing contact details, the merchant is allowed to develop a relationship with them by communicating via phone, direct mail and/or email. Over time, trust is established and a percentage of leads turn into customers.  The greatest results from a lead generation program stems from the following best practices.

Top 6 Best Practices

1.    Collect Accurate, Relevant and Unique Information

Verification
The Internet is an anonymous environment, so it is easy for people to enter false information into a form. Data verification tools are necessary to ensure the data you collect is accurate. If the data is not truthful, it is worthless. Some third-party verifiers also triangulate data to ensure that the phone number, postal address and email address actually belongs to the user that entered the information.

Validation
It is also imperative to ask qualification questions to ensure you reach your target demographic. For example, if only males are desired, a validation question may be “What is your gender?” The business should only receive leads that answered “male.”

 Exclusivity
The ideal lead generation campaign will generate leads exclusively for your business. That is, leads are generated for your business only and you own the leads to follow up with in any way you wish. Watch out for providers that resell data as part of their provisions.  Although some verticals such as insurance and mortgage lend themselves well to multiple buyers, not all lead types do for all situations.  If leads are sold multiple times, the value of the leads to the buyer may diminish.

2.    Create Clear and Compelling Offers

Opt-In (Not Forced)
Striking a balance between generating a high volume of leads and ensuring top quality is a tricky task.  Creative text and imaging is important, but so is a clear message. Using an opt-in offer that requires that a person actively check a box or answer “yes” to participate is the best way to ensure that you achieve a return on your investment.  When a person is not tricked, incentivized or forced to join, the leads you generate are from people who are truly interested in receiving more information from your company. These leads have the greatest potential to convert into sales.

Creative Content
You only have a few seconds to convince a site visitor to engage in your product or service.  To maximize conversion rates, the graphics should be clean and the copy should be compelling.  Be sure to capture the consumer’s attention and be clear and honest about the initial offering. For example, if a shipping and handling cost is required, this should be noted.

3.    Receive Leads in Real Time

Real time Integration
Leads are exponentially more effective if you work them within 5 minutes of receipt. This is why receiving the leads immediately is important.. Batch files, or data sent via spreadsheets at various times throughout the day, are no longer good enough to assess the value of the lead generation program.

Real time Reporting
Measuring conversion rates at various points throughout the lead generation process until a sale is made is crucial in determining the effectiveness of a campaign. The faster you can do this, the easier it is to make corrections to the process to increase effectiveness and minimize losses.  To do this, real time reporting is ideal.  In addition, be sure to capture important lead details such as source, time, date, and where the lead originates from (e.g. URL & IP address) to quickly optimize data generators and control overall lead pricing, volume and quality.

4.    Develop Clear Follow-up Processes

Auto-responder Emails
Once a user signs up for an offer, follow-up emails allow you to remain in contact with your potential customers throughout the lead generation process.  The content of your emails, as well as, the timing, and delivery rates affect overall response.  Employ a professional copywriter and/or marketer to write and analyze the results of your email campaign.

Call Center
If a sale is complex, it can be beneficial to have a phone conversation with a potential customer.  This approach gives you an opportunity to answer questions and explain the product or service in more detail.  Conversion rates from qualified lead to sale from this approach are typically higher than those without human interaction.

Direct Mail
You own the database generated from your lead generation program, so if the postal address is collected and validated, you can use it to send catalogues, coupons and special offers. This is a great way to build a relationship and keep your brand top of mind.

5.    Measure Results

Conversion rates
The goal of lead generation campaigns is to collect qualified leads that convert into sales.  It is impossible to judge the quality of a lead generation campaign purely by the number of leads generated or their cost.  Measure conversion rates at various points during the lead to sale process and effective cost per acquisition rates to ensure profitable, repeatable results.

Lead cost
Don’t be fooled by the “cheaper is better” mentality.  You get what you pay for.  More expensive leads are usually exclusive, verified and validated.  Your decision to stop, continue or expand your lead generation program should be based, on your profitability. Shop, test, measure, and repeat the cycle until your volume, quality and profitability goals are met.

Metrics
It can take up to six or more touches to convert a lead into a customer, so it is very important to define and analyze metrics for each stage of the lead generation and follow-up process. By examining each stage, you can quickly and easily identify areas that can be improved in order to optimize performance. Lead generation campaigns are not always successful with the first attempt.  It takes time to master the process. Put aside a reasonable budget, at least $5000, for testing and learning.

6.    Don’t go it Alone
Now that you know what it takes to implement a successful lead generation campaign, you’ll need to make sure you have the tools you need to execute.  If you don’t have the time, money or resources to build your own technology, consider outsourcing. Hire an experienced marketing company or consultant to lead you through a process that will provide you with maximum value and minimum risk.  Experienced Internet marketing companies can provide you with the tools and technology you need to make a substantial impact to your bottom line.

As I watched the NCAA Championship game last night between Kentucky and Kansas it occurred to me that sports in general are a great metaphor for life and specifically for succeeding in the business world. During the course of the game, many analogies can be made to what transpires in a person’s business life: The ups and downs, the challenges, the adversities and what it takes to meet them head on.  Here are some of my takeaways:

1. Learn and Master

Before you can play the game you must learn the basic fundamentals: how to play the game, how to pass, to dribble, run the court and shoot the ball. You have to develop the necessary skills to play at an acceptable level.

Lesson: In business you must also learn the basics. You must establish where you are, what it means to you and want you from it. You must then develop the skills and strategies for attaining it.

2. Prepare: Mentally and Physically 

Elite athletes know that you can’t function optimally or win games if you’re not prepared both mentally and physically. You must be in great physical shape to withstand a long, grueling and demanding basketball season. Equally important, you must have mental fitness. Mental fitness includes a positive, willing and winning mindset. One without the other will not win games.

Lesson: Being prepared mentally and physically is equally essential in life.

3. Be a Team Player 

Basketball is a team sport, which means it requires contribution and co-operation from every member in order to play well and win. Everyone must focus, work together and fulfill their individual roles for the common good of the team.

As great of a player that Michael Jordan was, he did not win any championships until he learned to involve his teammates by trusting them and distributing the ball.

Lesson: So it is with life. Contribute, co-operate and share.

4. Adjust and Re-adjust 

Every great basketball player knows that when your plays aren’t working you have to adjust, and then adjust some more. The varying strengths and styles of different opponents require different tactics. You have to be able to withstand and respond to whichever attacks an opponent uses on you.

Lesson: Life presents us with many challenges for which we must adjust our game plan.

5. Don’t Give Up

Another characteristic common to the brilliance of great players is that they never give up on a play. When they miss shots they retrieve their own rebounds, dive for loose balls, outwit defenders, and make every last second count. They are willing to do the small things that the statistics don’t reflect.

Lesson: Persevere. Never, ever, ever give up.

 6. Win or Lose: Accept Graciously

No matter what sport you play, you can’t win every game. It takes blood, sweat and tears to win a championship. If you give it everything you’ve got, no matter what the outcome, you can walk away with your head held high. Learn what it takes to win and come back and try again.

Lesson: Everything will not always go your way. There will be both losses and wins. If you give everything your best shot and learn the lessons along the way, you will come out a winner.

This is a great social networking timeline that starts in the 1960s with CompuServe (1969 to be precise) and goes all the way up to the modern era. I found this really interesting, because I was involved with BBS systems as early as 1985, but had no idea they had been around since the 70’s. What does this mean? Well, if you notice, as we get closer to the present, you’ll realize how fast things change and what was popular isn’t anymore (ie, MySpace.)