2008 Lead Company Update

[TXINSURANCE]

How can they sell them multiple times? Why would anyone buy them knowing that?

Different types of leads. Correct me if I am wrong but you are selling tele marketed leads - which is fine, but not the type of lead I sell.

If I generate a lead for $15 (making this up...) I can't possibly sell it 1 time when you factor in the cost of generation, return percentage, fixed costs, over head, staff, etc., etc., The cost runs too high and ROI falls off fast.

There is a balance between cost and distribution.

We do not sell non exclusive leads - we call them semi exclusive, because the max is 3 agents - average is just over 2.1 right now (system wide).

The BS is lead companies using cheap junk affiliate leads and selling to 8 to 12 agents (and other lead companies) this is INSANE!!

Internet leads going to 1-3 agents - no problem. People go to multiple websites anyhow "exclusive" is largely BS on Internet leads. If you can not overcome objections on leads going to 1 to 3 agents, you might want to look into another business.

 

[Ramond B]

Your right I do telemarketing. I can see your point about internet leads because your right consumers do shop at many sites. I also didn't take into consideration if those internet leads might be all the company is selling. If so lead companies would need a higher profit margin per lead obvously if that was their only means of revenue. Fortunately for me I also offer dialer service, targeted list, direct mail, and call center set ups and more marketing options. I can take a lower profit margin on any one product and still be fine. I guess most lead companies don't have that so I guess selling the leads more than 2-3 times would be a must....I just don't agree with it is all. That is not directed at you since since you only go up to 3 times. That is as fair as you can get with internet leads. Good job!

Different types of leads. Correct me if I am wrong but you are selling tele marketed leads - which is fine, but not the type of lead I sell.

If I generate a lead for $15 (making this up...) I can't possibly sell it 1 time when you factor in the cost of generation, return percentage, fixed costs, over head, staff, etc., etc., The cost runs too high and ROI falls off fast.

There is a balance between cost and distribution.

We do not sell non exclusive leads - we call them semi exclusive, because the max is 3 agents - average is just over 2.1 right now (system wide).

The BS is lead companies using cheap junk affiliate leads and selling to 8 to 12 agents (and other lead companies) this is INSANE!!

Internet leads going to 1-3 agents - no problem. People go to multiple websites anyhow "exclusive" is largely BS on Internet leads. If you can not overcome objections on leads going to 1 to 3 agents, you might want to look into another business.

 

[Ramond B]

I am giving some FREE tele marketed lead away on this topic as we type...

Health Insurance leads! Telemarketed!


get them before someone else does. This give away will end this week!

 

[Mr supplemental]

The problem with leads, as often as not, is not the leads themselves, but the lists you have to buy in order to generate the leads. If the list is old, or sold to others, how good could they be? Mailcards are good because prospects fill them out and mail them in. At least you have something in writing.

 

[CHUMPS FROM OXFORD]

It's a little early for my Year-end 2008 report, but here's an early-bird flag on one company:

ZIPSEARCH- I highly recommend staying away from these folks for at least the next 6 months. They conduct "campaigns" designed to generate leads. The amount of money they have spent on these campaigns (in some states) has fallen sharply. Therefore, your lead count will reduce (for those on the flat monthly rate).

Just as importantly, lead quality has suffered and is, in my opinion, at an all-time low.

I'll also have an updated report on Benepath since I seem to get a fair amount of reports on them. Most of what I am hearing from other brokers is not positive regarding Benepath. But, I'll hold off on any type of report until the end of the year.

This is an Internet Forum and naturally, opinions make up most of the content.

 

[djs]

I have to say, in my opinion, this has probably been an all-time low quality year in general for internet leads. Of course, my sample size has been fairly small this year, but it seems that the market has been flooded with people trying to sell leads, moving the quality bar down.

Of course, as agents, we are partly to blame. We demand presold, exclusive leads for $5, and complain when it doesn't happen. I'd much rather pay more to get better leads, but I'm finding paying more doesn't necessarily get you better leads. Of course, geography plays a big part in this.

Dan

 

[TXINSURANCE]

Of course, as agents, we are partly to blame. We demand presold, exclusive leads for $5, and complain when it doesn't happen. I'd much rather pay more to get better leads, but I'm finding paying more doesn't necessarily get you better leads.

There is a clearly a balance.

A $20 over filtered lead that never answers their phone is not worth the money.

A $1 unfiltered uninsurable lead is in the same boat.

The balance is somewhere in the middle - basic filters and price point $7 to $12 in my opinion. The big variable being how many agents the lead is sold to.

 

[JRoot]

It's a little early for my Year-end 2008 report, but here's an early-bird flag on one company:

ZIPSEARCH- I highly recommend staying away from these folks for at least the next 6 months. They conduct "campaigns" designed to generate leads. The amount of money they have spent on these campaigns (in some states) has fallen sharply. Therefore, your lead count will reduce (for those on the flat monthly rate).

This is my first month testing ZipSearch in CA. I paid $500 flat fee to test their life leads. There was only one other agency in CA doing the life side so I thought I'd give it a shot. So far I've received 72 leads.

Of the 72 leads so far, 17 have been bogus information and the rest have been interested or I havn't been able to reach them yet. I should get a decent ROI, I'll update on this thread when I finish my 2 months which will be November 1st.

Remember, these are life leads, not health...so not sure if this applies. Just thought I'd share my numbers so far.

 

[CHUMPS FROM OXFORD]

$500 for 55 possibles is a reasonable price. In my case...they lured me in when there were just 2-3 agents in the state and the estimated lead count was in the 60s or 70s.

A few months later, the lead count dropped to the 15-30 range and they were still autocharging me as the quality steadily declined. It was clear, they had changed the way they were gathering leads.

I guess my advice to you is to keep them as long as your ROI meets your expectations. If it heads South, negotiate with them and insist they drastically cut their price.

 

[Mark]

Has anyone ever tried Infinity Marketing. The leads are 15 each and come from an auto dialer where someone pressed one. They make you buy at least 50 leads to start with. They send me their kit, but I don't want to step out on a limb unless someone else has tried them and can brag about them. I know leads companies are a dime a dozen. I have used auto dialer leads before and one company did a good job, and all of the sudden they turned into crap. I was paying $18.00 a lead with the good company. So this $15.00 sounds better, if they are good leads.