treeves
Expert
I have been using shared health insurance internet leads for about a month, using a mix of Norvax and InsureMe leads. Leads cost me around $8 a pop.
Some agents and lead company reps said that shared internet leads should be anywhere from 2-4%, and some have said 10%.
At a 10% close ratio, this is obviously profitable when using an average premium of $300 per month (usually 2 person family), new business commission of 20%, and 80% approval.
However at 2-4%, it's still technically profitable at $640 per 100 leads, although I don't want to put all that work into it just to pay the lead company. I'd like to eat too, from time to time!
Here's my dilemma. Nearly all of the leads I have been receiving have either been a single female lead looking for insurance or married but want a separate policy, or unemployed, so the premium average is only around $150 per month.
So, in my first month of selling using leads, I have purchased 119 leads, closed two (1.6%), and should be closing two before the end of next week, for a lead closing average of 3.3%. The average premium is $150, so I am making (after paying for leads) just $640.
I do have drip marketing in place, and I send an intro letter to the lead, offer a free virtual book called Health Insurance Basics that I created, and have a phone call regimen in place.
My first contact success rate (which includes the intial lead phone call and a second call later that day) is around 20%. When I am able to get a hold of the client, I am able to set up a desktop share to discuss the plans and I do ask for the business- nicely, of course.
My questions are:
Some agents and lead company reps said that shared internet leads should be anywhere from 2-4%, and some have said 10%.
At a 10% close ratio, this is obviously profitable when using an average premium of $300 per month (usually 2 person family), new business commission of 20%, and 80% approval.
However at 2-4%, it's still technically profitable at $640 per 100 leads, although I don't want to put all that work into it just to pay the lead company. I'd like to eat too, from time to time!
Here's my dilemma. Nearly all of the leads I have been receiving have either been a single female lead looking for insurance or married but want a separate policy, or unemployed, so the premium average is only around $150 per month.
So, in my first month of selling using leads, I have purchased 119 leads, closed two (1.6%), and should be closing two before the end of next week, for a lead closing average of 3.3%. The average premium is $150, so I am making (after paying for leads) just $640.
I do have drip marketing in place, and I send an intro letter to the lead, offer a free virtual book called Health Insurance Basics that I created, and have a phone call regimen in place.
My first contact success rate (which includes the intial lead phone call and a second call later that day) is around 20%. When I am able to get a hold of the client, I am able to set up a desktop share to discuss the plans and I do ask for the business- nicely, of course.
My questions are:
- First or all, is that a normal close ratio for shared internet leads for three weeks worth of work?
- Does it normally take longer than three weeks to close a sale?
- Based on the numbers above, should I work on my close ratio, or volume?
- Is purchasing better quality leads (InsureMe offers leads with only three agent touches for $16, compared to $8 for up to nine agent leads) a better approach, or is quantity better since I am able to build up a database at least with interested people?