- Thread starter
- #91
- 6,027
FE Lead Cost vs ROI - Tele Sales . . .
- Thread starter myinsurebiz
- Start date
- Thread starter
- #92
- 6,027
lol You guys go at one another pretty good in here, don't you?
Like banging your head against the wall with some of these peeps.
chasejordan1
Guru
- 489
Your average sale will not be $50 a month, that's the first thing, your lead cost will not be zero dollars as much as you think it will be, you're not holding back money for chargebacks and roll up because that's not your money, even at a zero cost lead and $50 you still need to hold back $132 for chargebacks minimum. For about three months you're going to think it's beautiful and wonderful until the chargebacks hit. God for bid you think about holding back taxes too.
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chasejordan1
Guru
- 489
I did that already you clearly can't read or don't care.
- Thread starter
- #95
- 6,027
I believe I'm being very conservative at $50. We were over $60 back in the day and several call center owners have told me their avg is over $70 presently . . .
Lead cost will most def be $0 based on our system.
We are holding back 25% from what an Agent earns + 25% of the Advance received. No agency in the world holds back $132 on a $330 Advance. Why does anyone need to holdback $132 or 40% of the advance?
Our worst month ever back in the day was like 20% of a given months issued and paid cancelled in the advance window. Our 1st year persistency averaged right at 76% - 2nd year about 68% - give or take a few points.
Keep in mind we are only taking 3 and 6 month advances.
- 924
I have to hand it to this insurebiz guy. He literally does not care what anyone thinks. He just keeps posting and rolling forward.
Now if only we get him to focus his relentlessness into the right things he would be on to something
Now if only we get him to focus his relentlessness into the right things he would be on to something
chasejordan1
Guru
- 489
He just doesn't get it.I have to hand it to this insurebiz guy. He literally does not care what anyone thinks. He just keeps posting and rolling forward.
Now if only we get him to focus his relentlessness into the right things he would be on to something
chasejordan1
Guru
- 489
Whatever name you want to call it you can bottom line whatever you write with in the first three months 60% to 70% will stay on the books.
That is why you hold back 30 to 40% of the upfront commission so you can stay viable long-term because it's not actually your money which means it's not profit.
You're an *** if you think because you created 10 so called organic leads you're gonna be able to do it on a long-term basis thats not how you run a business .
These other agencies telling you that the average premium is $60-$70 are full of crap, and how they produce the leads will also determine what the average would be which has no bearing on what you're doing, also they're not telling you this to be honest, even face-to-face agents agree the average premium over long-term is $50 or less if you think somehow telesales is going to create you a higher average you're crazy.
Lastly your advance has nothing to do with what should be held back for chargebacks.
That is why you hold back 30 to 40% of the upfront commission so you can stay viable long-term because it's not actually your money which means it's not profit.
You're an *** if you think because you created 10 so called organic leads you're gonna be able to do it on a long-term basis thats not how you run a business .
These other agencies telling you that the average premium is $60-$70 are full of crap, and how they produce the leads will also determine what the average would be which has no bearing on what you're doing, also they're not telling you this to be honest, even face-to-face agents agree the average premium over long-term is $50 or less if you think somehow telesales is going to create you a higher average you're crazy.
Lastly your advance has nothing to do with what should be held back for chargebacks.
chasejordan1
Guru
- 489
Your business model / budget should be based on real and extremely conservative numbers.
Ave premium $42
Hold back amount for NT, cancels, bank issues etc - 35% of gross commissions.
Sales person pay - 40% to 50% of gross commissions. (This will include, bonus, work Comp, taxes, etc)
Lead Cost - 15% of gross commission.
Most agents / agencies don't hold back the 35% hence they fail.
Most agent / agencies over project the average premium, hence failure.
Most agents/agencies don't feed there sales agents enough leads because there running low on money and the volume is not there .
Most agents and agencies over project they're closing ratio because they don't have a long-term analytic .
Ave premium $42
Hold back amount for NT, cancels, bank issues etc - 35% of gross commissions.
Sales person pay - 40% to 50% of gross commissions. (This will include, bonus, work Comp, taxes, etc)
Lead Cost - 15% of gross commission.
Most agents / agencies don't hold back the 35% hence they fail.
Most agent / agencies over project the average premium, hence failure.
Most agents/agencies don't feed there sales agents enough leads because there running low on money and the volume is not there .
Most agents and agencies over project they're closing ratio because they don't have a long-term analytic .
- 7,015
lol You guys go at one another pretty good in here, don't you?
We're a lively bunch that's for sure. While there may be more than one way to skin a cat, this method has a very small chance of success.
There are a few trolls too that stir the pot.
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