How Many Weekly Leads Per Week?

[Rearden]

What if the cost per lead was $60 on an $800 investment -- that's 13 leads (roughly) -- what if you close 6 and your average sales is $700AP?

Point is... cost per lead is an over-obsessed number. What if you get a .2% response (2 out of 1000) and close 75% of the time on an average of $700AP, versus a 1.2% response (12 out of 1000) and close 20% to 25%?) using the same average? Every system has its slower-producing weeks.

Businessmen should concern themselves with return on capital/investment and time invested to realize that return.

It's like saying Widgets 'r' Us spent $200 million on advertising last year and concluding they made a bad decision without analyzing sales and net income.

I do agree the beginning agent does get the edge from contracting with a lead-subsidizing IMO as there is lower barriers to entry, a decent marketing system, and sales mentoring, all very valuable in my opinion.

 

[jdeasy]

What if the cost per lead was $60 on an $800 investment -- that's 13 leads (roughly) -- what if you close 6 and your average sales is $700AP?

Point is... cost per lead is an over-obsessed number. What if you get a .2% response (2 out of 1000) and close 75% of the time on an average of $700AP, versus a 1.2% response (12 out of 1000) and close 20% to 25%?) using the same average? Every system has its slower-producing weeks.

Businessmen should concern themselves with return on capital/investment and time invested to realize that return.

It's like saying Widgets 'r' Us spent $200 million on advertising last year and concluding they made a bad decision without analyzing sales and net income.

I do agree the beginning agent does get the edge from contracting with a lead-subsidizing IMO as there is lower barriers to entry, a decent marketing system, and sales mentoring, all very valuable in my opinion.

Yeah, you are going to close 6 out of 13 leads consistantly. That's a 46% close ratio. You would be by far the best FE agent working leads in the country.

I've gotten awards for having a 35% ratio. Really good agents close 20 to 25% of the leads received. Only the very best do over 30%.

 

[Justin Bilyj]

But those are the generic leads we are talkimg about..gubment ssi benefits!!

 

[BenS]

What do you guys think EFES/Securus pay per 1000 mailers? Just curious...

 

[theinsuranceman]

Yeah, you are going to close 6 out of 13 leads consistantly. That's a 46% close ratio. You would be by far the best FE agent working leads in the country.

I've gotten awards for having a 35% ratio. Really good agents close 20 to 25% of the leads received. Only the very best do over 30%.

If the lead piece said "do not mail this card back unless you are ready to buy some insurance" you might get back one card per 1000. But, if you had 10 of those leads you'd close 9-10 of the 10...90%-100% closing ratio.

 

[Rearden]

What do you guys think EFES/Securus pay per 1000 mailers? Just curious...

To venture a guess... maybe $250/1000, $275/1000. But I have no idea.

 

[ims01]

Ok guys, guess I'll throw everyone into a tizzy. We use telemarketed leads. The agent has no risk of a poor mailer return rate.The agents get them no more than 30 minutes after they are produced. The prospect is given the name of the agent that will be calling. The prospect is asked if they will be there for the next two hours and if not, when the best time to call would be. They are also asked if they have a bank account and they know we are discussing insurance.
The calls are live and meet all compliance requirements (which are ridiculous).
The agent will then sell the Final Expense over the phone.
Fifteen leads per week should net $1200 after lead cost at our starting commission level. Twenty leads should net $1600 per week.

 

[jdeasy]

What do you guys think EFES/Securus pay per 1000 mailers? Just curious...

They can't control the cost of postage, so it's going to cost them $300 just to mail 1000 pieces. How much for the paper and aministrative and labor costs?

I would think that $20 per 1000 would be really cost effective so they would be spending about $320/1000.

Securus uses MSPM so they would be paying more than that. I'm sure they get a discount over the $410/1000 that you and I would pay, but I'm also sure that MSPM is not doing them at cost for Securus.

Maybe a super effective mailhouse could do them for $310/1000. I can't imagine it ever being lower than that. You don't get a discount on the postage unless you don't mail by first class.

 

[Pangaea]

They can't control the cost of postage, so it's going to cost them $300 just to mail 1000 pieces. How much for the paper and aministrative and labor costs?

I would think that $20 per 1000 would be really cost effective so they would be spending about $320/1000.

Securus uses MSPM so they would be paying more than that. I'm sure they get a discount over the $410/1000 that you and I would pay, but I'm also sure that MSPM is not doing them at cost for Securus.

Maybe a super effective mailhouse could do them for $310/1000. I can't imagine it ever being lower than that. You don't get a discount on the postage unless you don't mail by first class.

1. $410 per 1,000 isn't bad at ALL.

2. 300 per 1,000 pieces for postage is too high. I typically pay $0.229 - $0.255.

What kind of mailers are they sending out?

I could do the design - printing (4/4, 16pt) - mailing and data for anyone $550. Never thought offering that as a service to other people though. (they'll look much better than these if that's what you're referring to) http://www.mspowermail.com/leads/reports/images/Card 19.jpg

 

[jdeasy]

1. $410 per 1,000 isn't bad at ALL.

2. 300 per 1,000 pieces for postage is too high. I typically pay $0.229 - $0.255.

What kind of mailers are they sending out?

I could do the design - printing (4/4, 16pt) - mailing and data for anyone $550. Never thought offering that as a service to other people though. (they'll look much better than these if that's what you're referring to) http://www.mspowermail.com/leads/reports/images/Card 19.jpg

Youi are not sending them by first class mail then. EFES and MSPM send by first class mail.

You are quoting junk mail pricing.