Cost to acquire customer
- Thread starter JJ2713
- Start date
- 29,487
That's going to depend on how you market yourself.
For instance, you can aquire customers for $0.00 if you go door to door cold knocking.....but it does cost your time.
In SaaS they try to be 3:1. That's the magic number.
i.e. if lifetime value is $1500, they will justify spending up to $500 to acquire.
All that to say, if you spend your FYC to get the Medicare client, it's worth it (from my perspective... tough to do when starting out).
MedicareMillionair
Guru
- 413
I would set up my own telemarketing system with a dialer and offshore telemarketer. You will dramatically lower your costs. You could keep yourself completely booked with appointments for about $1,000 dollars per month.
This doesn't exactly break it down to cost per client, but that will not be the significant figure with this type of system. You should end up with nearly 160 leads per month at the cost figure I listed above.
This doesn't exactly break it down to cost per client, but that will not be the significant figure with this type of system. You should end up with nearly 160 leads per month at the cost figure I listed above.
Okay, I'm just curious because I need help with the math. I understand your example is just an example. And, I don't question whether some agents do this and more. I'm just talking about the average sole proprietor without a support staff.
$1000 = 160 leads
That breaks down to an average of 40 leads each week. Assuming a person works 6 days a week, that's 7 appointments on most days.
If you're asking all the right questions, providing a proper education, being the "who you know...like...trust," and not having drive time, wouldn't you have to either spend only about an hour on each call (which I would think would cause more disenrollments) or spend a couple of hours, at least, on each person meaning you're working 12 to 14+ hours every day?
I just don't understand how anyone can conduct a proper sale in an hour. And, I'm not saying long days don't come with the territory but geez....maybe I'm a light weight.
MedicareMillionair
Guru
- 413
I’m not going I address everything you expressed above. It would get too lengthy. Understand, as with all appointments in the senior market. Not everyone will be home. Many calls you will quickly realize there is no sale opportunity. Sometimes, you simply won’t get to all the leads. I’ve had to throw leads away at times. Normally I wouldn’t do that, instead I would give my telemarketer time off, with pay. Feel free to call me for more info.
Devin01
Guru
- 430
You could do the math all day long and it doesn't matter get on the phone and start dialing build your product knowledge and talk to people that's the only way to learn people over analyze this never get started and most people fail within 3 to 6 months
Devin01
Guru
- 430
Ask anybody that successfully figured out Medicare and nobody really cares about the math because it's about new clients long as you have a system that brings on new clients the math really doesn't matter this is a common mistake that most new people make
I understand that the "math" doesn't sell anything. I was just curious.
Me, personally - I have no plans to hire a call center. I may add phone calls at some point but not today. My efforts are grassroots, local events, etc and it's working for me. I've tried direct mail but and it didn't. I've really had to stretch myself beyond my comfort level, and still am, but that's what's working. I'm not going anywhere.
Devin01
Guru
- 430
That is how your book of business will grow by trying multiple tactucs to acquire new clients.
Local networking is the best as you know its free.
Seminar Marketing
Direct Mail - to door knock or for phone sales.
Straight Telesales
Going into doctors offices
Its key to try different tactics it also makes the job more interesting.
Cross selling is a whole nother animal.
Local networking is the best as you know its free.
Seminar Marketing
Direct Mail - to door knock or for phone sales.
Straight Telesales
Going into doctors offices
Its key to try different tactics it also makes the job more interesting.
Cross selling is a whole nother animal.
