Health Leads for the Self Employed

Jan 15, 2007

  1. headcoach
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    headcoach Super Genius

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    I am currently buying "exclusive" telemarketed leads at $12 per lead. Does anyone know of another source where I can get leads directed at the self employed individual.....also can you target a specific zip code? Which do you prefer internet or telemarketed leads when targeting the self-employed
     
  2. salpro22
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    salpro22 Guru

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    John Petrowski started an excellent forum that addresses the aforementioned questions and then some. The link can be found here
    http://www.insurance-forums.net/viewtopic.php?t=211&highlight=shared leads
     
    salpro22, Jan 15, 2007
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  3. headcoach
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    headcoach Super Genius

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    Yes that is excellent information John provided. I seem to recall in another post he mentioned a lead company or a telemarketing company that a young lady ran. Do you know the company name or her contact information
     
  4. Crabcake Johnny
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    Crabcake Johnny Guru

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    There's no correlation between the cost of a lead and the quality. Once I got sucked up into $18 exclusive leads that would touted to be "high quality." What an ass kicking that was.

    The goal is to pay the least amount for leads possible, and $12 is too much. I'd say $10 a lead is the most you should be paying for an exclusive telemarketed lead.

    I'd stay away from internet leads. They are mainly junk and responsible for the death of most health insurance agents.
     
  5. L5tc
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    L5tc Super Genius

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    Health Leads

    I agree with the above they would have been the death of me - I stopped buying them.

    Health care is a nightmare for most people who don't have it so they troll the internet looking for cheap prices. You in turn buy that lead and have the pleasure of telling someone the price of something they can't afford.

    Oh.. and I tried the buying business only leads. That drill is the yearly price gets jacked up and the owners scramble for a a new plan. Here in the NY health insurance is a commodity - so I run around pricing plans sending faxes and the business realizes that I can't do any better and they stick with their plan and their agent who probably tried to tell them they can't really do better but they were convinced the internet sites would bail them out.
     
    L5tc, Jan 15, 2007
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  6. Sam
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    Sam Founder Administrator

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    Internet leads may suck for new agents but they CAN be used to make a very comfortable living.

    If you only close 1 out of 20 leads, you can still do VERY well, provided that you allocate your resources well, and know when to throw away old leads, or at least dump them into constant contacts. A better close ratio is just gravy.

    I am not saying that they are the best way to make a living in this business, and they are certainly not appropriate for someone who doesn't have strong product knowledge, or someone who doesn't close well, but they work, and I LOVE them!!
     
    Sam, Jan 15, 2007
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  7. Crabcake Johnny
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    Crabcake Johnny Guru

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    Very true. Close 1 out of 20 at a 20% contract level with a $8 per lead average cost. You need 4 deals per week:

    80 leads X $8 = $640
    4 deals X $3,500 per copy = $14,000 AV X 20% = $2,800
    $2,800 - $640 = $2,160 net profit.

    Concerns:

    1) If you're new you'll need at leats 6 weeks worth of lead money before steady commissions come in. That's a start-up lead budget of $3,840. Most of the agents I've met just coming into this biz are borrowing gas money.

    2) Without insane lead management skills 80 leads a week is extremely dauting to keep track of.

    3) Most internet leads (over 80%) are not self-employed business owners. Instead they are just broke employees shopping for rate. The problem with buying on price and not value is lapses are frequent.
     
  8. somarco
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    somarco That Medicare Guy

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    I have been working non-exclusive internet leads for several years and have always made a profit. Currently I am paying around $7 for filtered leads from 3 sources. I close from 8 - 12% of the leads.

    I am not saying this is for everyone, but it works for me.
     
    somarco, Jan 15, 2007
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  9. Crabcake Johnny
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    Crabcake Johnny Guru

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    At 10% closing ratio you could easily get 10 leads a day and close a deal a day. Very easy to manage that too.

    Weekly cost = $350
    5 deals X $3,500 = $17,500 X 20% = $3,500
    Net profit = $3,150 per week.

    That's not a bad living Somarco. You are also a true expert in the field - your level of health insurance knowledge is almost unmatched. You think a newbie could experiece your results? S*it - if I found out I was sharing leads with you I'd call and cancel. I wouldn't want to take that beating:-)
     
  10. somarco
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    somarco That Medicare Guy

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    John, you are being kind, and I do appreciate the compliments. Working leads has been a challenge and a learning curve. I have had a lot of luck, both good & bad as lead quality & volume has fluctuated over the last few years.

    The key always has been volume. It doesn't matter how you generate leads, if you dont have enough people to talk to you are dead in the water.

    Something I read a few months back was profound and simple. It was a pitch for a lead generation system. The question posed was this. Want to sell more than your competition?

    (click the link).

    Talk to more people than your competitors do.

    The great Cal Ripken was asked the secret of his success. His answer? Show up for work every day.

    If agents would simply show up and talk to more people they would not need a system.

    Here is another gem from Jeffrey Gitomer. People hate to be sold but the love to buy.

    Show up.

    Talk to more people.

    Give them an opportunity (and reason) to buy.

    Pretty simple really.
     
    somarco, Jan 16, 2007
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