- Thread starter
- #71
Health Insurance Leads
- Thread starter dave74
- Start date
- 14,809
....you are also highly skilled with 30 years of experience. New agents are doing well with shared leads closing 1 out of 15...then they can work on that number.
Excuse me, but being a newbie at buying leads, I have to ask:
1) what are you using to calculate ROI?
2) how are you comparing a conversion to a closing ratio? (it would appear to me that you are saying that 20% of 100 =20, so closing 1 in 5 would mean 20 out of 100, right?)
3) So how does ROI differ from conversion or closing?
- 3,863
The issue is lead companies selling to other lead companies. Virtually everyone does it without getting into specific names. This is done to "maximize" the number of time a lead is sold, but no one can police this.
Lead provider A sells 5 times, Lead provider B can sell a maximum of 4 times (Assuming max sell of 9 times, which is most common). The rules are seriously bent and there is no transparency.
If I order leads from company A it could actually be an undersold lead from company B,C, or D who I choose not to do business with.
You know the business.
If I buy leads from company A they better not come from B,C, or D unless full transparency exists.
erikAWL
Expert
- 30
yes, sorry for the marketing-speak. I mean conversion-to-customer (ie, close) rate of 10-20% which is closing 1 of every 5-10 leads. I like your ROI ratio approach. Do you know other agents who drive by as formal ROI measurements as you?
Frankly, I don't know anyone closing anywhere close to 1 of 5 leads. Several may CLAIM they are but they may also claim they have slept with J-lo.
Anyone who approaches this as a business calculates ROI.
1) Total annual commission divided by total lead cost. If my commission per sale is $600 and I have to buy $100 in leads then my ROI is 6:1.
2) Closing ratio's are meaningless. The ONLY thing that matters is ROI.
3) Closing ratio is a measure of activity. ROI is a measure of profitability. Say leads cost me $40 each. If I close 1 out of 5 leads but it costs me $200 to secure a client and my commission is $150 I am losing money even though my closing ratio is ridiculously high. To be successful you have to balance the money you spend on leads against your average expected commission. My average commission is probably a bit higher than most ($650 or so) because I work almost exclusively with families and older ages.
I also spend a great deal of time with folks who have health issues that many agents walk away from. The result is a high placement ratio and a higher than average premium.
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- 14,809
I'd argue that the only thing that matters it net profit. What good is ROI if $1 returns $6 if you have low lead volume and only put in a deal a week.
Who makes more:
A) Great agent - $1 to $6 ROI - goofs off most of the day, doesn't put a lot into leads - makes $800 a week net.
B) Bad agent - $1 to $3 ROI - works their butt off all week, buys a ton of leads and makes $3,000 net.
I can't tell you how many talented but lazy agents I've met. They have all the knowledge and skill in the world but are either unmotivated or have no ambition. ROI for those people is meaningless since they're still broke.
I know a lot of very average agents - average in the way of closing skills - yet they are work horses and earning more than $150,000 a year. They could care less what their ROI is - don't track it, don't need to.
Who makes more:
A) Great agent - $1 to $6 ROI - goofs off most of the day, doesn't put a lot into leads - makes $800 a week net.
B) Bad agent - $1 to $3 ROI - works their butt off all week, buys a ton of leads and makes $3,000 net.
I can't tell you how many talented but lazy agents I've met. They have all the knowledge and skill in the world but are either unmotivated or have no ambition. ROI for those people is meaningless since they're still broke.
I know a lot of very average agents - average in the way of closing skills - yet they are work horses and earning more than $150,000 a year. They could care less what their ROI is - don't track it, don't need to.
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- 10,276
"The issue is lead companies selling to other lead companies"
Strange thing happened with ASAP over the weekend. I received a lead identical to a NQ lead I received about a week earlier. Sure, the person could have entered their information twice.
But oddly, the wording and spacing of the lead was exactly the same. I'll email ASAP today. Hopefully, it was not a duplicate lead.
Strange thing happened with ASAP over the weekend. I received a lead identical to a NQ lead I received about a week earlier. Sure, the person could have entered their information twice.
But oddly, the wording and spacing of the lead was exactly the same. I'll email ASAP today. Hopefully, it was not a duplicate lead.
