Another "Rip Off" lead company

[taterpeeler]

In my experience you need to work a minimum of 200 to 400 leads over 90 days or longer to truly realize a lead company is junk , as virtually all of them are.

so... u drop about 3300 bucks? .... dosent take me 3 months and 3 grand to call a spade a spade..... but i have only been working leads for 21 years. any qualified agent should be able to realize after about 1 week if they are just pissing up a rope or not.... and sounds to me like the rope is all wet

 

[taterpeeler]

You sold 2 out of 16 - I would kill to have conversions like that.

i would kill the lead co. with 1 out of 10...... if thats the best i can do i will go sell cars.... im a salesman... a salesman gets a better ratio... order takers get 1 out of 10

 

[The New Guy]

i would kill the lead co. with 1 out of 10...... if thats the best i can do i will go sell cars.... im a salesman... a salesman gets a better ratio... order takers get 1 out of 10

Now that you have advised us on what you wouldn't do, how about what you would do? If I made $1,000 on every $250 I spent, I wouldn't have to be here.

 

[taterpeeler]

Now that you have advised us on what you wouldn't do, how about what you would do? If I made $1,000 on every $250 I spent, I wouldn't have to be here.

Simple!!!! Sell... Sell... Sell... adapt, adjust, attack, afirim

 

[The New Guy]

Simple!!!! Sell... Sell... Sell... adapt, adjust, attack, afirim

I believe that is just the point TX and I both made. You don't try to hit the long ball every time, but always make sure you make the most of your time at the plate.

 

[taterpeeler]

whatever....

 

[STIBROKER]

 

[TXINSURANCE]

There are a lot of variables here.

Do you sell Internet or Face to Face?

Do you sell all demographics or do you cherry pick ages, areas, etc.,?

I work RAW leads from ALL areas, ALL walks of life, ALL ages and it shows. I can print out daily stats of our call logs and on any given day 89 to 92% of all outbound calls are indeed voice mails.

I owned a lead company long before we sold insurance, I know the business and I know the game.

There are essentially two types of leads:

1. User initiated - SEO, ORGANIC, i.e. someone proactively took the time to initiate a search or investigation relating to the purchase of insurance

or

2. Affiliate lead - Someone paid to sell leads to a lead company, banners, pop ups, spams, you name the tactic everything else pretty much falls into this category.

People track numbers differently - I know some agents that claim a 20% close ratio - well they back out all of their bad numbers, uninsurables, and people they actually talk with.

There are also some geographic issues with price, market competitiveness, underwriting, you name it. Also as your volume goes up and you have employees / sub agents it is only natural your close percentages go down - back to the old "no one will work as hard as you do bit..."

I have done extensive national testing when I owned a lead company and average RAW close ratios can range from 1% to about 12%, average being in the 5% to 8% range... i.e. buy 100 leads and get 5 to 8 application submissions.

There are variations and super stars, so many variables it just ultimately needs to financially make sense on your cost of acquisition.

If your COA is $100 or less - maybe even up to $150 you are just fine and likely making money - COA is $400 there is virtually no way to turn a profit long term.

Basic business principals like selling widgets - no different than any other business.

 

[STIBROKER]

There are a lot of variables here.

Do you sell Internet or Face to Face?

tt

.........................

 

[Expat]

There are a lot of variables here.
Do you sell Internet or Face to Face?
Do you sell all demographics or do you cherry pick ages, areas, etc.,?
People track numbers differently - I know some agents that claim a 20% close ratio - well they back out all of their bad numbers, uninsurables, and people they actually talk with.
Basic business principals like selling widgets - no different than any other business.

I sell on line 99% of the time
My only demographic is Dallas and Collin counties.
I alway back out uninsurable, bad numbers and bogus, because I am usually credited for those leads, therefore they did not cost me anything. Plus when I see pregnant, cancer, 4" 1"/300lb I don"t even bother calling. Just send them back in for credit.
Back in the day I ran a 45 person lead room, so I am fully aware of how things work.

The reason that I have a high closing ratio is twofold:
1. I work evening and weekends (Far less competition to be first on the phone) [See post by Sti]
2. I spend a lot of time selling myself and building a rapport, plus I always "Piss in the well" for those that follow.

Works for me.