Saroya: Pure lead-gen businesses are not durable long term
Karn Saroya · Karn Saroya on the Capital-Light Way to Start an Insurance Business · Y Combinator · Feb 27, 2019 · at 12:42
Karn Saroya, CEO of insurance startup Cover, explains why building a sustainable brokerage requires owning the customer experience instead of relying on lead generation.
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“I don't think that you can build a durable business as just a lead gen. You know a lead gen service for a couple of reasons. One, those arbitrage opportunities eventually dissipate. The second is you're not building any brand, like, equity or value, and you're certainly not, you know, doing your customers a service by vacuuming up their contact information and selling it on 10 times to juice, you know, average revenue per user.”
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