Why Traditional Primary Research Vendors Like GLG Are Facing Mounting Challenges

In today's data-driven business landscape, primary research remains a cornerstone of strategic decision-making. For decades, expert network firms like Gerson Lehrman Group (GLG) have dominated this space, connecting businesses with subject matter experts for insights that inform critical business decisions. However, these traditional primary research vendors are increasingly facing significant challenges that threaten their long-established business models.

The Traditional Expert Network Model

GLG, founded in 1998, pioneered the expert network industry and grew into a billion-dollar enterprise by creating a marketplace where businesses could access expertise through one-on-one consultations with subject matter experts. Their model typically involves:

• Curating networks of thousands of experts across industries
• Facilitating connections between clients (often investment firms, consultancies, and corporations) and these experts
• Charging premium fees for access to this expertise, often on an hourly basis
• Managing compliance and confidentiality concerns

According to a report by Integrity Research Associates, the expert network industry generates approximately $1.5 billion in annual revenue, with GLG maintaining the largest market share.

The Growing Challenges

Rising Costs in a Price-Sensitive Market

Traditional vendors like GLG operate on high-margin models that have become increasingly difficult to sustain. Their fee structures often include:

• Expert compensation (typically $200-1,000+ per hour)
• Platform fees and administrative costs
• Sales and account management overhead

According to industry analysis from Inex One, the average cost of an expert call through traditional vendors ranges from $1,000-$1,500. As companies become more cost-conscious and procurement departments gain influence over research budgets, these premium prices are coming under intense scrutiny.

Technological Disruption and New Competitors

The expert network model is facing disruption from technology-driven alternatives that offer more efficient solutions:

• AI-powered research tools that can aggregate insights more quickly and affordably
• Self-service platforms with transparent pricing models
• Specialized research marketplaces with lower overhead costs
• Community-based platforms where experts participate for various incentives beyond direct compensation

As noted in a CB Insights report, funding for alternative research platforms increased by over 200% between 2018 and 2022, signaling strong investor belief in the disruption of traditional models.

Compliance and Transparency Concerns

Traditional expert networks have faced persistent challenges regarding:

• Insider trading concerns and regulatory scrutiny
• Opacity in pricing and expert selection processes
• Difficulties in verifying the quality and accuracy of expert insights

The financial industry, in particular, has faced regulatory actions related to the use of expert networks. According to a Stanford Law School study, approximately 35% of insider trading cases between 2010-2015 involved expert networks in some capacity, creating ongoing reputational challenges for the industry.

Limited Scalability of Human-Centric Models

The traditional model faces fundamental limitations:

• Human experts can only participate in a limited number of consultations
• Quality control becomes more difficult as networks expand
• Geographic and language barriers limit global scaling
• Scheduling and logistics create friction in the research process

A Harvard Business Review analysis suggests that traditional expert networks utilize their experts at only 5-10% of theoretical capacity due to these constraints.

The Evolution of Primary Research

In response to these challenges, the primary research landscape is evolving rapidly:

Technology Integration

Forward-thinking research providers are incorporating:

• AI-assisted matching of experts to research needs
• Natural language processing to extract insights from conversations
• Automated quality control and compliance monitoring
• Hybrid models that combine human expertise with technology-driven efficiency

Innovative Pricing Models

New approaches to monetization include:

• Subscription-based access rather than per-hour billing
• Credit systems that allow more flexible usage
• Outcome-based pricing tied to the value of insights
• Tiered service levels for different client needs

Expanded Research Formats

Beyond traditional one-on-one calls, modern research options now include:

• Asynchronous expert Q&A
• Multi-expert panels and virtual roundtables
• Ongoing advisory relationships rather than one-off consultations
• Digital content repositories of previous insights

According to a survey by Primary Research Group, 78% of corporate research clients now utilize at least three different formats for accessing expert insights, compared to just 35% five years ago.

The Future of Expert Networks

While traditional vendors like GLG continue to hold significant market share, their future success will depend on their ability to adapt to changing market demands. Several trends will likely shape this evolution:

Democratization of Expertise

As technology reduces barriers to access, expert insights will become available to a broader range of businesses beyond the traditional financial and consulting clients. This expanded market will require new approaches to service delivery and pricing.

Integration with Broader Intelligence Systems

Rather than functioning as standalone research channels, expert networks will increasingly need to integrate with clients' broader market intelligence ecosystems, including:

• Internal knowledge management systems
• Alternative data sources
• Competitive intelligence platforms
• Strategic planning tools

Focus on Measurable Outcomes

Clients increasingly demand clear ROI from research investments, shifting from paying for access to paying for impact. This will require expert networks to demonstrate how their insights directly influence business results.

Conclusion

Traditional primary research vendors like GLG face a pivotal moment in their evolution. Their established models—built on exclusive access, premium pricing, and high-touch service—are under pressure from technological innovation, changing client expectations, and new competitive entrants.

While these challenges are significant, they also present opportunities for transformation. The fundamental value proposition of connecting decision-makers with relevant expertise remains powerful. The vendors that successfully adapt to deliver this value more efficiently, transparently, and affordably will likely continue to thrive, while those that cling to traditional approaches may find their market position increasingly difficult to maintain.

For businesses relying on primary research for decision-making, this evolution offers promising developments: more diverse research options, greater cost efficiency, and ultimately, better access to the insights needed to navigate an increasingly complex business environment.