Pay Per Connect

A friend of mine, Lincoln Silver, of Flycast, Walmart.com and Wine.com fame, has landed a new gig at a company called FREE411.

FREE411 seems like a great idea. Like the web - it's an advertising-supported business model (aka Google for the phone). You dial 1-800-FREE-411 from any phone and get free directory service. If you are calling for a business, Jingle Networks (aka FREE411) will present you with a quick ad to listen to based on the type of business your calling. Additionally, you may be offered a "special" or a coupon from the advertiser.

Here's an example: you're calling for the local number for Domino's Pizza. FREE411 serves you a quick ad from, say, Round Table and RT offers $5 off for ordering from them. You comply and get connected with RT instead of that yucky 'ol Domino's. Sure, if you like, you can stick with Domino's but why turn down the $5?

Here's another example: someone calls up and asks for a Real Estate Agent (or a Loan Broker) in Palo Alto. Before she gets the number, she hears an ad for LendingTree. FREE411 could drive the caller to press 1 to receive a text message with the number she requested and a unique URL for LendingTree to be used for tracking purposes.

Apparently pay-per-connect is a hot, fast-growing space. FREE411.com is up to 3.5 million unique users per month, which netted around 12 million calls and they are projecting to be at 10 million uniques/30 million calls per month by eo 2006 .

FREE411 is seeing 5-15% response in some categories and they claim a strong branding element to the advertisers as well.

Check it out!