Can anyone Recommend Quality Med Supp Leads?

[kgmom219]

I was referring to lead programs in general.

I wasn't specifically stating my lead program but I am happy to play this game.

In the simplest terms, the agents who are successful with my Medicare supplement leads are seeing an average client acquisition cost in the $140 - $160 range.

If you read this forum enough, or talk to enough agents in the Med Supp world, that is about as low as it gets besides referrals ($0).

The average cost per client acquisition by most other agents/agencies working a "lead program" is going to be in the $250 - $350 range.

Plenty of folks are happy to pay their entire FYC to acquire a single client.

Lifetime client value is going to be a minimum of $1500 with the possibility of it being double that if you rewrite them, score a referral or two, or cross sell them a life policy.

----------

These are agents/agencies who are purchasing leads in bulk to receive a discount.

Either 100+ ($8 per lead) or 1000+ ($7 per lead) leads at a time.

If you aren't closing a minimum of 5% after working through 100+ leads, you need to double check your presentation/follow-up.

All if the above makes perfect sense.

And $150 for COA on an O65 plan is a great target.

And just FYI, I don't buy leads from him or anyone else.

 

[insurance5511]

There's roughly 6 million seniors who can be contacted via phone for Med Supps in America. Direct mail reaches people that aren't on the dnc. Do both and compare results. But even dm or tm leads aren't going to be a laydown. If you want easier leads (still not laydowns) the best ones are internet leads which will run $35+ a piece. If you want laydowns, cultivate referral relationships...

35$ for internet will get you zero volume...try 70+ will allweb t65...and they wonder why I drink

 

[grod]

I was referring to lead programs in general.

I wasn't specifically stating my lead program but I am happy to play this game.

In the simplest terms, the agents who are successful with my Medicare supplement leads are seeing an average client acquisition cost in the $140 - $160 range.

If you read this forum enough, or talk to enough agents in the Med Supp world, that is about as low as it gets besides referrals ($0).

The average cost per client acquisition by most other agents/agencies working a "lead program" is going to be in the $250 - $350 range.

Plenty of folks are happy to pay their entire FYC to acquire a single client.

Lifetime client value is going to be a minimum of $1500 with the possibility of it being double that if you rewrite them, score a referral or two, or cross sell them a life policy.

----------



These are agents/agencies who are purchasing leads in bulk to receive a discount.

Either 100+ ($8 per lead) or 1000+ ($7 per lead) leads at a time.

If you aren't closing a minimum of 5% after working through 100+ leads, you need to double check your presentation/follow-up.

Thank you for the explanation and posting those numbers. As for me, I self generate my own direct mail. Have been doing it for the past few years. My cost per acquisition is about half of what it would be if I were to buy $7,000 worth of leads from you. As I look to improve my systems and lead flow, it sure won't be by purchasing leads from a lead vendor...no offense. Bottom line, you (lead vendors) are too expensive.

 

[Glen Shelton]

Thank you for the explanation and posting those numbers. As for me, I self generate my own direct mail. Have been doing it for the past few years. My cost per acquisition is about half of what it would be if I were to buy $7,000 worth of leads from you. As I look to improve my systems and lead flow, it sure won't be by purchasing leads from a lead vendor...no offense. Bottom line, you (lead vendors) are too expensive.

Can you please post specific examples (including price points) of your "self generated" direct mail program as well as how you get your acquisition cost in the $70 range?

 

[Professor Leads]

If I only closed 5% of purchased leads I would have left this business a long time ago. Those are cold calling rates. $140-$160 COA seems high to me. I think a common target for Med Supp agents is 15 apps/month so that's $2100-2400/mo leads budget to make about $3750/month FYC.

I suppose 10% COA (~$150 COA/$1500 6 yrs of commish) isn't bad in the long run, though. I just don't think it's necessary to spend that much to acquire 15 clients/month.

The other problem I see with spending that much on leads is that an agent becomes so invested in that way of prospecting that he/she neglects working other angles.

I think a better approach is a combination of purchased leads in the $1000/mo range + networking + cold calling + referrals (actively asking for them from every client).

That should net the same results with half the cost while also helping the agent grow as a professional. Of course, scale that to your goals if 15 clients/month is too low.

But if someone wanted to pay me $2100-2400/month to generate leads I would hope that agent could write at least 20/mo if he/she really worked those leads. I wouldn't feel like I am delivering much value to the agent otherwise.

 

[Glen Shelton]

If I only closed 5% of purchased leads I would have left this business a long time ago. Those are cold calling rates. $140-$160 COA seems high to me.

5% would be the absolute minimum anyone should be closing.

Those who are more skilled and have a strong follow-up system can be closing in the 8%+ range which can make a big difference.

Again, $140 - $160 for the O65 age group is really good. The only way you will be getting less than that is through referrals/networking ($0).

I'm a HUGE fan of diversification of marketing efforts, if you search for previous comments I have made, I usually mention this.

Also to note, everything I have mentioned is in regards to selling over the phone.

Selling F2F will look completely different.

----------

5% would be the absolute minimum anyone should be closing. Those who are more skilled and have a strong follow-up system can be closing in the 8%+ range which can make a big difference. Again, $140 - $160 for the O65 age group is really good. The only way you will be getting less than that is through referrals/networking ($0). I'm a HUGE fan of diversification of marketing efforts, if you search for previous comments I have made, I usually mention this. Also to note, everything I have mentioned is in regards to selling over the phone. Selling F2F will look completely different.

Also - everyone's marketing budget looks a little different. If an agent is brand new, then yes, spending time doing your own cold calling is not a bad idea.

However, if you have been doing this long enough, doing your own prospecting in that method is ultimately going to hold you back from making a lot more $$$ in the long run.

----------

If I only closed 5% of purchased leads I would have left this business a long time ago. Those are cold calling rates. $140-$160 COA seems high to me. I think a common target for Med Supp agents is 15 apps/month so that's $2100-2400/mo leads budget to make about $3750/month FYC. I suppose 10% COA (~$150 COA/$1500 6 yrs of commish) isn't bad in the long run, though. I just don't think it's necessary to spend that much to acquire 15 clients/month. The other problem I see with spending that much on leads is that an agent becomes so invested in that way of prospecting that he/she neglects working other angles. I think a better approach is a combination of purchased leads in the $1000/mo range + networking + cold calling + referrals (actively asking for them from every client). That should net the same results with half the cost while also helping the agent grow as a professional. Of course, scale that to your goals if 15 clients/month is too low. But if someone wanted to pay me $2100-2400/month to generate leads I would hope that agent could write at least 20/mo if he/she really worked those leads. I wouldn't feel like I am delivering much value to the agent otherwise.

BTW - did you even decide on a price point yet for your "lead program"?

I would imagine it's hard to figure out what customer acquisition costs when you haven't even decided that yet ...

My program is tried and true, I have agents/agencies/call centers who have been using it for well over a year.

 

[vic120]

5% would be the absolute minimum anyone should be closing.

Those who are more skilled and have a strong follow-up system can be closing in the 8%+ range which can make a big difference.

Again, $140 - $160 for the O65 age group is really good. The only way you will be getting less than that is through referrals/networking ($0).

I'm a HUGE fan of diversification of marketing efforts, if you search for previous comments I have made, I usually mention this.

Also to note, everything I have mentioned is in regards to selling over the phone.

Selling F2F will look completely different.

----------



Also - everyone's marketing budget looks a little different. If an agent is brand new, then yes, spending time doing your own cold calling is not a bad idea.

However, if you have been doing this long enough, doing your own prospecting in that method is ultimately going to hold you back from making a lot more $$$ in the long run.

----------



BTW - did you even decide on a price point yet for your "lead program"?

I would imagine it's hard to figure out what customer acquisition costs when you haven't even decided that yet ...

My program is tried and true, I have agents/agencies/call centers who have been using it for well over a year.

I remember When you first started You did a bit of testing yourself, You were not so sure what you would charge either

I have started using his leads and early tests have had decent results

 

[Glen Shelton]

I remember When you first started You did a bit of testing yourself, You were not so sure what you would charge either I have started using his leads and early tests have had decent results

I have tons of agents I work with who use Internet leads. I think the world could use a decent internet lead vendor - most out there are terrible.

 

[hockeyday]

I have tons of agents I work with who use Internet leads. I think the world could use a decent internet lead vendor - most out there are terrible.

so what do the numbers look like face to face? I think far to many people have fallen for this over the phone BS, can an agent build a med sup/MA Biz face to face in a 50-100 mile range from their office

 

[vic120]

I think far to many people have fallen for this over the phone BS,

What do you mean Fallen for?