A Ping-Tree is an automated distribution model that uses waterfall logic to decide in fractions of a second which buyer receives a freshly arrived lead. Instead of assigning the lead outright, the system offers it one buyer after another, until a buyer says yes.
How it works
Buyers are organized into tiers:
- Tier 1 – Premium: high-paying buyers with the highest priority
- Tier 2 – Standard: regular buyers who get their turn when Tier 1 declines
- Tier 3 – Overflow: buyers who take leads at lower terms and absorb the remaining volume
Within and across the tiers, three ranking criteria determine the order: a buyer's priority, the bid amount, and the currently available capacity. This way, a lead lands first with the buyer who fits best and pays the most.
The process in detail
- A new lead arrives and is validated.
- The system builds a ranking from the eligible buyers.
- It sends a ping to the top-ranked buyer in Tier 1.
- Acceptance: The complete lead is delivered via post, and the process stops.
- Rejection: The system pings the next buyer, first within Tier 1, then in Tier 2, then in Tier 3.
- The waterfall continues until a buyer accepts or the list is exhausted.
Example
A comparison portal sells photovoltaic leads. For an inquiry from the Stuttgart area, the ranking looks like this:
- Tier 1: Provider A bids €34, Provider B bids €30
- Tier 2: Provider C bids €22
- Tier 3: Provider D takes it at €14
The ping goes first to A. A has already exhausted their daily quota and declines. The next ping reaches B, who accepts. The lead is delivered to B for €30, and the waterfall stops, Tiers 2 and 3 are never used. Had B also declined, C would have been next in line.
How it relates to related methods
The Ping-Tree combines several building blocks of the lead trade. The individual inquiry to each buyer follows the Ping-Post principle: ask first (ping), deliver on acceptance (post). The bid amount as a ranking criterion overlaps with Lead-Bidding, which shapes pricing dynamically. And with a pre-ping, you can check in advance whether a lead even meets a buyer's basic criteria before the actual waterfall starts.
When does a Ping-Tree make sense?
A Ping-Tree delivers value when you serve many buyers with different priorities, prices, and capacities and want to sell each lead at the highest possible value. With only a few equal-ranking buyers, a simpler model such as lead distribution via round-robin is often more practical.
FAQ
How fast does a Ping-Tree run?
The entire waterfall, from the arrival of the lead to delivery, typically takes only milliseconds to a few seconds, so the lead reaches the buyer as fresh as possible.
What distinguishes a ping from a post?
The ping is the inquiry with reduced data on whether a buyer will accept the lead in principle. The post is the subsequent transmission of the complete record after the buyer says yes.
Can a lead remain unsold?
Yes. If all buyers across all tiers decline, the lead remains unsold. A well-calibrated overflow tier significantly reduces these cases.
How are the tiers defined?
Assignment is based on priority, bid amount, and capacity. Premium buyers with high bids sit at the top, while overflow buyers absorb the remaining volume at lower terms.
Want to set up a Ping-Tree for your lead trade and steer it in real time? Book a demo