Friday, October 9, 2009

Quinstreet heads full force into the Insurance space

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Earlier today it was announced that Quinstreet had paid $16M for the domain name and “related assets” of insure.com from Insure.com, Inc. (NSUR). $16M is a big bet on little more than a domain name, especially when you consider the domain was purchased in 2001 for just $1.6M. Nevertheless, I think it’s a great strategy by Quinstreet. Having a flagship domain as you go after a vertical is a clear signal to your buyers that you are fully invested in the success of that line of business.

Insurance is a great vertical for lead providers and just about the most stable business you could enter. True, margins are not great for insurance agents so the price that they are willing to pay is relatively low, however there are more potential buyers of leads in the insurance industry than in just about any other vertical. Indeed the company I work for, Leads360, has had amazing success in this vertical over the past 9 months and now that we have an insurance lead management product that we have spent the past year perfecting I believe that we have a product that is light years ahead of any other lead management software for insurance companies. It’s great to see that a company that I admire as much as Quinstreet is all in on insurance too.

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