Hello from All Web Leads

[Mark]

I still don't understand why any agent would buy a shared lead. So the client will have 3 to 5 agents calling them trying to sell them. Each one will tell the client how the other agents product sucks and they are also all fighting over the cheapest price.

Maybe in general shared leads are really cheap and a great deal.

 

[CHUMPS FROM OXFORD]

"Each one will tell the client how the other agents product sucks"

Not really. I certainly don't. In fact...many of us are licensed with the exact same companies.

 

[GreenSky]

"Each one will tell the client how the other agents product sucks"

Not really. I certainly don't. In fact...many of us are licensed with the exact same companies.

So you tell your prospects that YOUR products suck?

Rick

 

[Mark]

"Each one will tell the client how the other agents product sucks"

Not really. I certainly don't. In fact...many of us are licensed with the exact same companies.

Only one of the agents will end up with the sale if the client decides to buy anything at all.

So if 5 agents get the same lead, at least 4 of them walk away with nothing.

I would just be willing to pay more for a lead that is not shared with any other agent. 5 agents is really pushing it.

On a side note, I have never bought a health lead because I don't do health insurance. Maybe this is just the way that all health lead companies do it. Also, it could depend on you the agent. You might have a better product and price then the other agents and the client will pick you and tell the rest of the agents nevermind.

 

[LGilmore]

Thanks Eric,

The big ugly for me is when the email address bounces back immediately. I don't like that as it usually means a wasted effort about to be had. I would think your system could automatically thank someone for submittal and if it bounces back to you...don't send it to me.

I want to be able to communicate clearly acurately with both email and phone numbers.. When they are putzed up not good man, not good.

A few other things to cover, but I gotta go right now.

 

[CHUMPS FROM OXFORD]

Some swear that shared leads give them the best ROI. Some prefer exclusive leads at a higher cost.

"So you tell your prospects that YOUR products suck?

Rick"

Nah. I just tell them that the air flight speed of an African Swallow is 45 mph.

 

[GreenSky]

Some Nah. I just tell them that the air flight speed of an African Swallow is 45 mph.

No it's not! (am I mixing up Python routines?)

Rick

 

[CHUMPS FROM OXFORD]

Wow! Indeed...that was a Monty Python saying!

 

[somarco]

don't understand why any agent would buy a shared lead.

ROI

Only one of the agents will end up with the sale if the client decides to buy anything at all.

So if 5 agents get the same lead, at least 4 of them walk away with nothing.

So-called "exclusive" leads are usually 2x - 3x more than shared leads. That automatically cuts your ROI significantly.

While closing ratio's mean nothing, let's just assume I can close 1 out of every 10 shared leads. At $8 per lead (with filters) that means an investment of $80 is needed to secure a new client.

My average commission is $650 so my ROI on shared leads is roughly 8:1.

Use the same scenario for exclusive leads at $18 each.

That means I must invest $180 to make $650 for an ROI of 3.6:1.

Why would I deliberately sabotage my ROI to have an exclusive lead?

When you are considering internet leads there are things to factor in vs any other form of lead generation (including cold calling and telemarketing).

The search was initiated by the prospect with internet leads. There are a few other ways to capture leads that are prospect initiated but the cost is much higher.

Since the search was prospect initiated there is a high probability they have no desire to speak with an agent. If I am lucky, I get to talk to 40% of my internet leads.

Of those I talk to, maybe half are viable prospects. The rest have insurability issues, money issues or were hoping to win a free iPod.

FWIW, I have tried just about every form of prospecting short of putting signs on telephone poles. I have telemarketed, paid others to telemarket, placed print ads, handed out flyer's & business cards, attended trade fair's and gone door to door calling on business owners.

Every form of prospecting has plus's and minus's. There is a cost to all forms, including walking & talking.

For me, passive marketing, looking for folks who have raised their hand indicating an interest in health insurance, best suits my style. Interruption marketing has not been as effective for me.

Long answer, but it comes down to what works for the individual and ROI.

 

[Crabcake Johnny]

Average agent working shared leads quits. That said, agents who can put deals together on shared leads typically close 1 out of 20 - nowhere close to 1 out of 10.

You've been in this industry for close to 30 years. For new agents, buying shared leads is almost guaranteed failure.

Of all the top producing members of the association - almost all long since switched from shared to exclusive.

When agents join and express and interest to work shared leads I tell them to count on closing 1 out of 25 - which are the real stats for most agents.