Does Anyone Have Experience with Need-A-Lead?

[moretrax]

How does that Nike saying go...........

Spoke to NAL about fixed cost leads. 50-85 age and $0 to $60k income. Other posts on this forum have indicated many responses come in from the 80-85 age group. That and the $0 income lower end makes me back away from this. The wording on their mailers is really NOT any different from anyone else's. Indicated response rates only seem average at 1.3% to 1.5%

Knowing your fixed cost per lead seems like a good idea. However, at an avg. per mailer cost of $465/1k, 16 responses, or 1.6% and you are doing just as well. A response rate better than 1.6% and you're better off with per 1k pricing.

Before you just do it...just do the math

 

[Newby]

Spoke to NAL about fixed cost leads. 50-85 age and $0 to $60k income. Other posts on this forum have indicated many responses come in from the 80-85 age group. That and the $0 income lower end makes me back away from this. The wording on their mailers is really NOT any different from anyone else's. Indicated response rates only seem average at 1.3% to 1.5%

Knowing your fixed cost per lead seems like a good idea. However, at an avg. per mailer cost of $465/1k, 16 responses, or 1.6% and you are doing just as well. A response rate better than 1.6% and you're better off with per 1k pricing.

Before you just do it...just do the math

If you think you are going to average 1.6% in Southern Indiana you better have deep pockets. I've mailed it for years. 1% is a good return. But often I got less than 1/2%.

When I was doing those mailers I was mailing $15,000 to $60,000 ages 60 to 79. Sometime I mailed female only. In fact one time I did a 3,000 piece drop and got one single lead. ONE! I'm pretty sure that mail house didn't drop much of the mail. But the owner spent an hour trying to convince me that females don't respond. Only males do. Yeah, right.

Now granted this is coming from a guy who sells set price direct mail leads now. But you report back once you have dropped around 10,000 pieces and let us know if I'm full of it.

 

[moretrax]

If you think you are going to average 1.6% in Southern Indiana you better have deep pockets. I've mailed it for years. 1% is a good return. But often I got less than 1/2%.

When I was doing those mailers I was mailing $15,000 to $60,000 ages 60 to 79. Sometime I mailed female only. In fact one time I did a 3,000 piece drop and got one single lead. ONE! I'm pretty sure that mail house didn't drop much of the mail. But the owner spent an hour trying to convince me that females don't respond. Only males do. Yeah, right.

Now granted this is coming from a guy who sells set price direct mail leads now. But you report back once you have dropped around 10,000 pieces and let us know if I'm full of it.

I don't doubt you Newby and I don't think you're full of it.

Just doing the math on each option and with a lower response rate the fixed cost option is the way to go. Thanks for your input.

 

[SammyJ]

Newly you're correct but Obviously Rgi has to be getting at least a 1.2% response nationwide to break even. Charging the imo $26 x12 lead cards back per 1000 =$312 minus $11 plus for the returned cards is near $300. Since Rgi mails so much there cost could be $280 or so a 1000. Does Rgi look at your whole group response yearly and adjust the rates? So any Imo with a lot of agents in tough response states like Ga and Fla could be paying Rgi $30-$32 a card correct? Some Imo's will give rebates of $5-$7 a lead for very high producers.

 

[Newby]

Newly you're correct but Obviously Rgi has to be getting at least a 1.2% response nationwide to break even. Charging the imo $26 x12 lead cards back per 1000 =$312 minus $11 plus for the returned cards is near $300. Since Rgi mails so much there cost could be $280 or so a 1000. Does Rgi look at your whole group response yearly and adjust the rates? So any Imo with a lot of agents in tough response states like Ga and Fla could be paying Rgi $30-$32 a card correct? Some Imo's will give rebates of $5-$7 a lead for very high producers.

We only have one state that we charge a per lead surcharge. It's $2 extra in Florida. We did have a small across the board rate increase this summer. But we still sell leads to agents on a set price starting at $25 per lead without the filters. Our most popular lead with age and income filters and with life insurance on the card is $27.50 now. It used to be $26. But that is still a bargain compared to the other options I see out there.

I'm only aware of agencies that subsidize the leads by giving lower commissions. Or there are the (NASB types) that try to pawn off B-leads, C-leads, etc. mixed in with their real leads to unsuspecting agents. I haven't seen any that lower the price of the real leads AND give the 115-120% commission contracts to all agents. There might be one out there but if there is, he should advertise more. It would be very popular.

 

[SammyJ]

You're selling leads ages 55-79 and the $15-$50 k filter for $27.50?How often does Rgi analyze your agency's total return rate to determine if they need to access a rate increase?

 

[Newby]

You're selling leads ages 55-79 and the $15-$50 k filter for $27.50?How often does Rgi analyze your agency's total return rate to determine if they need to access a rate increase?

No. the lead you are describing is $28.50.

I'm sure they analize their profitability every month on an ongoing basis. Believe me they are experts at what they do.