Expected Results by Lead Type?

[3timer]

I'm returning to the business and will be primarily focusing on the senior market, especially FE. Doing my research here has given me some choices for lead sources and types.

What kind of results do you guys get from direct mail vs. dialer vs. live transfer vs. appointment set?

It seems to me at $30 an appointment the risk is lower than $20 for a return mail piece or fax/email lead info that you still need to make an appointment with (50% drop off?). The live transfer was pitched to me at 1-3 transfers/100 minutes of dialer time (great cost under $5 each) but do those turn into FE business for anyone?

I need help developing my "lead system" and would appreciate any advice. BTW, I know that referals and my warm market are the top priority.

 

[joshril]

Are you talking live transfers on recorded messages? ("press 1 to speak with a live agent...")

 

[3timer]

Yes.

 

[djs]

This question is a little bit like asking:
"I have to drive to work every morning, what type of gas mileage do you get?"

Hmm, depends, city or highway, motorcycle, car, hybrid or what.

Do you have to haul stuff to work (i.e., need tools where a motorcycle won't work?) or do you work next door and the question isn't an issue.

Why do I get into this?

I've said numerous times, lead sources and styles are geographically dependent and market dependent. In addition, your skills and style will play a lot into how successful a lead source is.

For instance, in my area, larger metropolitan (San Francisco Bay Area, Silicon Valley), internet leads have become garbage lately, though a few years ago worked pretty well. You can still make money, but it's declining, people are more leary of putting real information into the contact section, and tend to be less than honest with other things. I know in other areas, they work pretty well still.

Telemarketing individuals for me is an almost non-starter. Nobody answers their phone if they don't know the person calling. In more rural areas (even if I call a few miles east of me, which is more rural), there is a lot more success.

Mailers are always hit and miss. Persistency is the only way to make this work, along with a real call to action. The mail piece itself determines the success of this, along with the ability to truly target the right demographics.

In short:
Spend your time defining your target market, what about that market makes them pull the trigger to buy, and then you'll better understand how to approach them.

Let me give an example (and realize I'm a P&C guy). Let's say I want to write some auto policies. I know I have excellent rates for good drivers, especially homeowners, 2 cars, with youth drivers (typical family), and I have AWESOME rates for people with DUI's. My rates for individuals with one car with one or two tickets are less than stellar (not terrible, but I won't win that market).

Now, I can go to apartment complexes and pass out flyers, but I'm not targeting my market.

I can go to used car dealerships for center of influence referrals, but again, not really my target market (most have driving issues, new car dealers tend to have better drivers).

Or, more appropriately, I can find homeowners, write their homeowners policy and pick up their autos. I do amazingly well with this, because it is my target market.

I also get internet leads for people with DUI's that need coverage. I do amazingly well with these as well, because no other agent wants them. It is a different market, but it's easy to write.

This business really is about defining your target markets, and only then finding a way to approach them.

If your market definition reads:
- Anyone with a heartbeat (an old mortgage brokers market)
then you have some work to do. At least add something like
- and makes over $50K a year
along with
- Married with children
- has a dog (shows stability in their life to some extent)
etc, etc....

I know nothing about FE sales, so I can't help with what the target market is, but if you don't define that first, then my recommendation is don't spend money on developing a leads program.

Dan

 

[3timer]

Dan..really appreciate the input. The target are the responders to the leads purchased. It seems to me if the direct mail has a direct message that it is "Final Expense Whole Life Insurance for $10,000" or similar language in telemarketing then the leads should be of similar quality....but I dont know and thats why I was asking the original question.

Reading through posts I've learned .25% conversion rate on live transfers and 1-1.5% on direct mail are what others are getting. I haven't seen dialer numbers, but my uplines vendor guarantees 2 apps from 10 leads (he says 5 or 6 appointments from his 10 leads). And thats what I think I will be using.