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Is it just me, or does it seem like a conflict of interest to sell leads to your downline at a profit?
IMOs Who Also Sell Leads...
- Thread starter NSRH
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- insurance leads
- 924
- 30,589
Is it just me, or does it seem like a conflict of interest to give out "free" leads...but keep 1/2 the commissions for those "free" leads?
- 26,146
- 4,125
What IMO makes a profit on leads besides maybe NAA?
- 26,146
I do not sell or buy leads so this is just an uninformed thought *
It seems that if an IMO is selling leads to someone like me that has contracts all over the place there is nothing wrong with getting whatever the market will bear. However, selling them to their captive / semi-captive agents at that price seems to skew the loyalty quotient to one side. The agents become customers and not business building partners. You know the whole ' we care about you and want to help you succeed' bit. I am sure there are a lot of variables and risks built into the pricing.
It seems that if an IMO is selling leads to someone like me that has contracts all over the place there is nothing wrong with getting whatever the market will bear. However, selling them to their captive / semi-captive agents at that price seems to skew the loyalty quotient to one side. The agents become customers and not business building partners. You know the whole ' we care about you and want to help you succeed' bit. I am sure there are a lot of variables and risks built into the pricing.
- 5,973
It is what it is.
- 495
I don't think it's a conflict of interests. But I wouldn't see why any established imo would try to profit that way. It's not easy at all. It's a huge hassle to generate leads. And to maintain a steady flow.
There is a huge upfront cost. And you have to make money selling bit by bit.
If you're constantly mailing or running commercials to keep inventory, you'll eventually run out of cash flow if demand goes down or even up too fast. Take into account return rates never being stable and inconsistent agents. It's a hard way to make little money for an imo
I don't make a profit with the leads I generate from my commercials and I charge $46 in California. I still have times where it costs me $100 per lead and I eat the rest.
I can see why an imo would up mark leads. It costs me $42 a lead in California for my lead piece. In Hawaii the same piece costs me $36. I can lower ca leads to $39. And increase Hawaii to $39 and I won't bleed money trying to keep everyone with leads.
Currently I just eat the cost. Lower ca and take the loss. I imagine I can just raise everything to $50. But who would buy those and cut into their roi
It's a pain.
It would easier to just make money off the sales and let the agents deal with leads on their own.
There is a huge upfront cost. And you have to make money selling bit by bit.
If you're constantly mailing or running commercials to keep inventory, you'll eventually run out of cash flow if demand goes down or even up too fast. Take into account return rates never being stable and inconsistent agents. It's a hard way to make little money for an imo
I don't make a profit with the leads I generate from my commercials and I charge $46 in California. I still have times where it costs me $100 per lead and I eat the rest.
I can see why an imo would up mark leads. It costs me $42 a lead in California for my lead piece. In Hawaii the same piece costs me $36. I can lower ca leads to $39. And increase Hawaii to $39 and I won't bleed money trying to keep everyone with leads.
Currently I just eat the cost. Lower ca and take the loss. I imagine I can just raise everything to $50. But who would buy those and cut into their roi
It's a pain.
It would easier to just make money off the sales and let the agents deal with leads on their own.
- 26,146
Hey man, Howz it?
