A leading integrated practice management and electronic health records company asked Health Business Group to research best practices and benchmarks for lead generation fees paid to channel partners for referring new business. The client's compensation structure and levels needed to be refreshed due to the company’s evolving product portfolio and changes in market conditions.
We estimated fair market value based on market norms for compensation rates and structures by researching the fees received by third parties for comparable lead generation services. This comprised market interviews with referrers, compensation experts and comparable companies, plus secondary research to identify published benchmarks. In addition, we compared market norms to the cost of lead generation by the company’s internal marketing team.
As a follow-on project we extended the analysis to two newly acquired business units.