Acquisition Costs

somarco

GA Medicare Expert
5000 Post Club
37,606
Atlanta
I decided to run some totals on client acquisition for 2007. For the year it is running just over $82 per client. Estimated, annualized commission per client is coming in around $610.

I try for a 5:1 ratio so 7:1 is certainly acceptable.
 
This varies great on volume, also retention is not factored.

There are also huge variables between face to face vs. Internet (younger, transitional clients).

There are also costs of home vs. office, staff vs. single agent.

Most major carriers direct sales (non agent) COA runs in the $350 to $450 range.

While ours is not that high, It is fairly close in some regards.

Either way good job - you are clearly making money at a low COA like that... Good for you.
 
All of my leads come from the internet. No face to face.

Retention running in xs of 90% thru 3 yrs.

Overall, I am pleased. Didn't realize my comp per client was that high. I have always looked for acquisition in the $80 range but hadn't put a number to it in a while.

Carriers that market direct are fools. They think they come out ahead by not paying agent comp.
 
All of my leads come from the internet. No face to face.

You are buying leads or spending money to get people to your site?


I see on your site you do life and DI, are your numbers above health only or all products?


Thanks

I used to live in Roswell. Is the water situation getting any better In GA?
 
Hi Chicken -

Buying shared leads. Do virtually nothing to promote my site other than blogging & answering questions about insurance on a consumer site.

Numbers are for health only. Wouldn't make much of a difference if I added in the life & DI commissions. My focus is health.

Water is still way down for the year. Lake Lanier is 20' below full, about 50% of capacity. West point lake is at 10% of capacity.

Did you get your name from the Big Chicken?
 
Hi Chicken -


Did you get your name from the Big Chicken?

Are you talking about that thing in Marietta. I was down there in April and saw they have redone the chicken!!

No, it came from the craps call of "Winner, Winner, Chicken Dinner".

I don't even play craps.
 
Chicken -

You must have been gone a while. The Big Chicken was given a face lift probably 10 yrs ago.

I prefer the old one.

I don't play craps either and have never heard "winner, winner, chicken dinner".

Down there.

You must have moved north. If you went any further than TN you must be a yankee.

A cold, yankee . . .
 
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