- 582
Lead debt just sounds scary. I guess you can create your own personal lead debt but I'd feel more comfortable being in control of the debt rather than LH very conveniently adding to it.
Just saying.
Just saying.
FE Mailers
- Thread starter Johnnymc
- Start date
- 19,647
I believe LH's lowest price lead is $21. The $28 is for TV leads.
One should make more than $250 per sale on a LH policy. Plus, they are full of shat if the claim that their leads are colsed at a 20% rate. Full of shat is too nice. That's an outright lie if they claim that.
There's some other goodies with LH. If the client pays from a savings account they cut your commission and your advance. If the client plays monthly direct they cut your commission by almsot 50 ponts.
This is what the liars refer to as "agent friendly"!
The only people that say that LH is an agent friendly company are ones that are recruiting for LH. Gee! What a shocker!- 687
I never saw any $21 leads.
As for the savings account shave I still never understood that one. An account is an account.
- 19,647
That's what a local LH agent told me he pays for the mail leads. What is the lowest cost now for the mail leads?
- 582
Well EFES leads aren't much cheaper (or more expensive depending on your level) but I guess the big difference comes from the commission you make off the sale.
Even if you close 20% (which you won't) of LH sales that doesn't mean much when:
-Leads cost $20+ each
-Your commission isn't more than $250
-You have back end lead debt to eat a piece of that
With buying your own leads at least you have a much higher commission level and you don't have a back end lead debt taking a piece.
Even if you close 20% (which you won't) of LH sales that doesn't mean much when:
-Leads cost $20+ each
-Your commission isn't more than $250
-You have back end lead debt to eat a piece of that
With buying your own leads at least you have a much higher commission level and you don't have a back end lead debt taking a piece.
- 19,647
Dude, you are clueless about Lh, EFES and the business of FE and you don't seem to be listening at all.
Good luck. You are going to need it.
- 582
Whoa there slugger, what do you mean? Based off the LH training so far it clearly states you make:
$50 a month=$600 Yr Annual Premium
$600 Yr Ap
80% Commission
$480 Total Gross Commission
75% Advance
$360 Advanced Commission
70% (30% Going to Leads/Chargeback's)
$252 Net Income
Lead costs are $25 each for mailers. So if you "finance" 5 leads you owe the company $125. If you sell 1 out of 5 than you net $127.
So let's pretend for the week you financed (that's LH calls it) $1000 in leads. That means you got 40 houses to visit. If you sell 20% of those:
8 sales
$4800 yr ap
80% Commission
$3840 Total Gross Commission
75% Advance
$2880 Advanced Commission
70% (30% Going to Leads/Chargeback's)
$2016 Net income
$864 is the total 30% going to leads so you still owe the company $136 which will just now be a part of your lead/chargeback tab.
Now let's pretend you just bought 40 leads and paid $25 a piece for them. You didn't get them from EFES you just straight up bought leads or did your own mailer. That's still $1000 spent but:
$4800 yr ap
115% Commission
$5520 Gross Commission
Minus the $1000 you spent out of your own pocket for leads
Equals: $4520 net income
I have no experience so can't really factor in chargebacks, but I assume LH, Foresters, Forethought, RNA, etc. all have similar % of that.
I have no problem admitting I am new and if you consider me clueless than fine, but please expand on that instead of just wishing me luck because I need it. Above mathematically is what I *think* I fundamentally understand about FE but by all means if my math is way off explain it to me.
I'm all ears. I am here to learn you know.
- 17,072
You guys are a bunch of Debbie Downers.
LH has been very good for me.
Slush Puppy it looks like you have the math pretty right. When you do the lead drops yourself you really should skim 15% off the gross commissions and put in your own reserve account for chargebacks.
When figuring this kind of math don't just stop at your advanced parts either. You also want to calculate how much difference there is with the sales for the entire year AND look at the 10-year income from the sale if you are in this for the long haul.
When people tell you FE doesn't stay on the books, it's mainly people who want to get all your trail commissions themselves and keep you focused on 1st year only. I can guarantee you lots of FE stays on the books 10+ years. Otherwise we could all just be selling 10-year term.
LH has been very good for me.
Slush Puppy it looks like you have the math pretty right. When you do the lead drops yourself you really should skim 15% off the gross commissions and put in your own reserve account for chargebacks.
When figuring this kind of math don't just stop at your advanced parts either. You also want to calculate how much difference there is with the sales for the entire year AND look at the 10-year income from the sale if you are in this for the long haul.
When people tell you FE doesn't stay on the books, it's mainly people who want to get all your trail commissions themselves and keep you focused on 1st year only. I can guarantee you lots of FE stays on the books 10+ years. Otherwise we could all just be selling 10-year term.
You aren't comparing apples to apples.. In the first two you are only counting the advanced commission as "net income" In the last one you use the entire annualized commission as "net income".
- 687
jdeasy said:
I paid $28 for mail leads which and I don't remember tv lead costs
Similar threads
