Acquisition Costs

[somarco]

take total marketing dollars expended divided by number of new clients attracted

Yep. This isn't rocket surgery.

I totaled up all my hard costs for generating leads and divided by the number of new clients. Came up a few pennies over $82.

Last time I ran those numbers it was similar. As long as I can hold my acquisition costs to $100 or less I figure I am in good shape.

The only surprise was the $620. I didn't realize I was doing that well. I usually figure around $500 but figured as long as I am running the cost figures might as well check the comp too.

Took the annualized premium times 20% divided by the number of new clients. The 20% was an average since I get anywhere from 10% (BX) to 24%. Most are 20%, one at 11% and another at 15%. Didn't factor in bonuses.

Closing ratio's are fun to talk about but those don't pay the bills. I like to track where my money is spent and what kind of return I get. Sometimes I will be patient with a marketing plan as long as it gives me at least 3x return on investment if it shows promise.

Some of my ventures didn't do so well and I had to give them the boot.

It's all about making money. This IS a business.

I already have a hobby . . .

 

[moonlightandmargaritas]

.

The only surprise was the $620. I didn't realize I was doing that well. I usually figure around $500 but figured as long as I am running the cost figures might as well check the comp too.

Mine is a tad lower - $600 on the nose. I'll have to work that "cost per new client" number...

 

[Chkndinner14]

Chicken -

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

A cold, yankee . . .

I am, 34 years living in MI vs only 7 in the south. 10 Inches of snow on the ground. Atlanta's great, but the parents were getting old, so it was best to come back.

I just have gotten into this shared internet lead thing. My results 55 leads, 2 sales. There is an art to doing this, it won't take me long. The question is............ do I have enough energy. The P & C business has been good to me, it is a little soft now. Most of my health comes from small group, but I can see where the individual is a good revenue source. My goal would be to do $36,000 in commission this next year.

So, using an average of $500 a sale, need 72 sales. I know I won't retain it all. 6 sales a month. If I can close 1 out of 25 leads say 50 of the 72 will come from shareds, I will buy 1250 leads @ $7 cost = $8750 expense. The other 22 sales will be off my customer base and community involvement. If I work 200 days a year, I need to buy 6.25 leads a day.

Vimo Live result, My bid $25-- the high has been around $41. I have been on for a week and no calls. I need to up my bid, but I need to get my phone talk down, before I part with the money.

 

[CHUMPS FROM OXFORD]

"If I work 200 days a year"

I like your post (very organized and goal-oriented)...but...that's a lot of vacation.

 

[somarco]

My results 55 leads, 2 sales. There is an art to doing this, it won't take me long.

It is indeed an art, and one that constantly changes. I am continuously tinkering with my approach by tracking what works, what doesn't.

I am especially intrigued when calls or emails come to me before I contact them by phone. Must mean my responses to their lead inquiry are working.

Got one this AM from a lead that came in yesterday.

Bob - My name is Deborah. Please give me a call 678-333-3333. I'd like to discuss health insurance policy.Your right i've gotten several rude people calling me already.

I figure this is a lay down.

And yes, the name is real, the number (in my quote) is fake.

Most of my health comes from small group, but I can see where the individual is a good revenue source. My goal would be to do $36,000 in commission this next year.

Modest goals. Should be attainable.

2 sales from 55 leads isn't all bad . . . unless that is net after credits for bum leads. If it is gross leads figure 70% of them are folks that either do not qualify or you will never be able to contact. So you really have 2 sales out of 15 net leads.

I used to work large group exclusively in various capacities. It was a good market for me but like everything else it changed and became too political for me.

The comp per client is very good on individual health & small group. I was working large group and making very good money on extremely large numbers. My average monthly comp on a per capita basis was around $2.

Doesn't sound like much, and it wasn't, but figure at the top of my game I had around 7500 lives covered.

With individual & small group you can average $40 - $50+.

Doesn't take as many lives to make a decent income.

Vimo Live result, My bid $25-- the high has been around $41. I have been on for a week and no calls. I need to up my bid, but I need to get my phone talk down, before I part with the money.

I just lowered my bid to $20, given the "new" Vimo strategy. Don't know if I will get calls or not, but it really doesn't matter. That is the beauty of bidding.

Give me a ring some time if you want to chat. I will be hard to catch next week but expect things to be slow. I don't mind sharing what I do with folks who are not in my back door. Even then, I don't give away ALL my secrets . . .

 

[TXINSURANCE]

My goal would be to do $36,000 in commission this next year.

So, using an average of $500 a sale, need 72 sales. I know I won't retain it all. 6 sales a month. If I can close 1 out of 25 leads say 50 of the 72 will come from shareds, I will buy 1250 leads @ $7 cost = $8750 expense. The other 22 sales will be off my customer base and community involvement. If I work 200 days a year, I need to buy 6.25 leads a day.

Good post - set your goal higher $36k is nothing once you back out your expense, a man has to eat.

At least your post is honest not trying to close 1 of 5 of even 1 of 10 on shared leads, that is garbage - 1 of 25, you will do better than that but at least you are on the right track.

I think what you meant by 200 days is backing out holidays, weekends, etc., etc.,

And yes, the name is real, the number (in my quote) is fake.

I loaded it in my predictive dialer anyhow - you never know... lol...

 

[Chkndinner14]

Good post - set your goal higher $36k is nothing once you back out your expense, a man has to eat.

My goal would be a lot higher, but I am a 13 year P & C agent, so I have other things to do during the day. With the P & C market being soft right now I am just diversifying a little.

This forum has brought me a long way from that first shared lead conversation (aaagggghhhhh, silence, agggghh, whats your deductible, agggghh, silence, agggghhhhh, you've been bitten by a worm eating fern bird and now you're a carrier? aggghhhh, so have I, aggggghhhh)

Thanks for the comments, I do appreciate it. I have been posting some in the P & C areas trying to help the new guys over there. Never read a forum in my life until last month. Great way to stay focused, as long as you still make the calls.