Hiring a Telemarketer

Okay, ten dollars may not be accurate but a general price I was working on since the exact cost per hour was not disclosed.


Of course, in my area telemarketing seems to be harder than other parts of the country, I believe because it is severly over telemarketed. If someone could get me 2 life leads an hour (with live, breathing people, under the age of 132, no heart attacks in the last 2 weeks, etc), they are hired! If your numbers are based on 2 an hour, and you can acheive those on a regular basis, then yes, I can see how this would work.

Figure most are tire kickers. 1 in 5 you do a quote for, close one in 3 of those. Mostly term. I don't have any 100% term contracts, don't sell enough to make it worth spending the time, so let me use 80%.

Close one in 15. It took 7 1/2 hours to get those 15 leads, at $30 an hour (lets use conservative numbers), that is $225 for the cost of acquisition of the appropriate lead. Using your $700 premium at my 80% commission gives me $560 - $225 for the lead = $335. Now, the question is, can I work 15 leads a day, with one of those closing? Probably.

A couple of things though, my average life sale is probably over $700 a year, I earn bonuses, and I can cross sell to other things, so the numbers work pretty well. Now, if I start getting to 1 in 20, or I don't get 2 an hour on average, the numbers quickly go downhill.

It may be interesting to try for a while.

Dan
 
Wow, great discussion!

My target client is the small business owner with revenues under $1mm.

So far, I've just been converting my accounting clients. With year end and tax season, I'm up to my neck. But I know I need to get out there at least one day/week on the insurance side. Since I don't have as much time as I would like, I am thinking a telemarketer might be the way to go.

Earlier in this thread, Gary said his rates are $25/hr. So 1 in 10 is $125 lead cost.

If the calls are centered around voluntary employee bene's -- then once in the door, I can talk about life and retirement.

Since this is moving away from the original discussion, I'm opening a thread in the Employee Benefits Forum.

Thoughts?
 
I have had telemarketers for years off and on. The one thing I learned was they usually last about 3 months. So, I only use a temp agency. Then I do not have issues with unemployment tax rate going up. You should also be worried about at home telemarketers. In most states you are responsible for their Work Comp coverage. Even if they are 1099, they may be able to come after your policy. The beauty of the temp agency, it they are not any good after 3 days, you just have them send the next one.
 
I have had telemarketers for years off and on. The one thing I learned was they usually last about 3 months. So, I only use a temp agency. Then I do not have issues with unemployment tax rate going up. You should also be worried about at home telemarketers. In most states you are responsible for their Work Comp coverage. Even if they are 1099, they may be able to come after your policy. The beauty of the temp agency, it they are not any good after 3 days, you just have them send the next one.

I have thought about going through a temp agency. What was the markup in cost when you used an agency. Is it per hour, contract, etc.?
 
Of course, in my area telemarketing seems to be harder than other parts of the country, I believe because it is severly over telemarketed. If someone could get me 2 life leads an hour (with live, breathing people, under the age of 132, no heart attacks in the last 2 weeks, etc), they are hired! If your numbers are based on 2 an hour, and you can acheive those on a regular basis, then yes, I can see how this would work.

Figure most are tire kickers. 1 in 5 you do a quote for, close one in 3 of those. Mostly term. I don't have any 100% term contracts, don't sell enough to make it worth spending the time, so let me use 80%.

Close one in 15. It took 7 1/2 hours to get those 15 leads, at $30 an hour (lets use conservative numbers), that is $225 for the cost of acquisition of the appropriate lead. Using your $700 premium at my 80% commission gives me $560 - $225 for the lead = $335. Now, the question is, can I work 15 leads a day, with one of those closing? Probably.

A couple of things though, my average life sale is probably over $700 a year, I earn bonuses, and I can cross sell to other things, so the numbers work pretty well. Now, if I start getting to 1 in 20, or I don't get 2 an hour on average, the numbers quickly go downhill.

It may be interesting to try for a while.

Dan

I usually run about 2-3 WL/UL's within 10 sales, mostly mix so my average yearly premium was hovering around $2,000. Now I also peddle a lot of DI as in cross sales, maybe 1 out of 20. So if I decided to buy telemarketed leads at around $12.50 a piece that would suit me nicely, even figuring 1 out of 15 as a close ratio. Even though I think I could do better but, honestly I never brought leads as in bulk, so I couldn't really say. I have heard that these type of sources, may they be hired help or farmed out to a Gary does seem to peter out after a while. I'm lucky to manage twenty solid leads (tire kickers eliminated and not counted) a week thru telemarketing and walking myself. I'm just not all that organize but, I do good by acknowledgeing my limitations.

Usually a solid week means two life sales. Problem is stringing together 50 solid weeks!:D Okay, stringing together 10 solid weeks, let me make my goal achieveable!
 
James,

How many dials/walk-ins are you doing to get 20 leads/week?

Alot! About 200-300 (at least 50 aday) mix of dialing and walking. Now remember there is a ramp up time, take a few weeks and do nothing but calling and or walking, eventually it becomes fun! Okay, not really FUN but fun.

Now this is not a science, some days I can't do anything right other days I can not do no wrong. One day I got screamed at, so I screamed back! You know I ended up getting the sale, well not that day but the guy just look at me and laughed! Then he sat back and said, "Yea, I need a break!" and we sat down and we talked over coffee which started a great relationship!

Its a people business, just enjoy it!
 
Very old thread - does anyone know if Gary's business is around? Can't find any info on it and web address doesn't do anything. Thanks!
 
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