Is this a Fair Contract?

[Thad.Sipple]

Lead is generated via telemarketing and quality is about equal too mailer. ( yes this is debatable)
80% with free leads @ approx 30 per week. F2F or telesales
100% with lead cost @ $12.50 per lead, same lead as above.

Your thoughts and input would be appreciated.

Thad

 

[FEX Quotes]

Lead is generated via telemarketing and quality is about equal too mailer. ( yes this is debatable)
80% with free leads @ approx 30 per week. F2F or telesales
100% with lead cost @ $12.50 per lead, same lead as above.

Your thoughts and input would be appreciated.

Thad

100% and pay for the leads at $12.50 -- all day long

 

[rousemark]

Lead is generated via telemarketing and quality is about equal too mailer. ( yes this is debatable)
80% with free leads @ approx 30 per week. F2F or telesales
100% with lead cost @ $12.50 per lead, same lead as above.

Your thoughts and input would be appreciated.

Thad

If you will write more than $1800 net per week, then the 100% contract is best.. if you aren't going to do that, then take the 80%. It would be hard to tell you which to do as only you know your capabilities.

 

[jdeasy]

Lead is generated via telemarketing and quality is about equal too mailer. ( yes this is debatable)
80% with free leads @ approx 30 per week. F2F or telesales
100% with lead cost @ $12.50 per lead, same lead as above.

Your thoughts and input would be appreciated.

Thad

Both situations are more than fair.

 

[Thad.Sipple]

Sorry, I meant I was thinking of offering this to agents, I am toying with idea and want real opinions.

 

[moonlightandmargaritas]

Sorry, I meant I was thinking of offering this to agents, I am toying with idea and want real opinions.

Agents who have no skin in the game ("free" leads), will perform like slappies - guaranteed.

 

[jdeasy]

Agents who have no skin in the game ("free" leads), will perform like slappies - guaranteed.

That's true. They will pay as much attention to them as they paid for them.

 

[Thad.Sipple]

That's true. They will pay as much attention to them as they paid for them.

Agreed, so if I were to do it don't offer "free"

 

[rousemark]

Agreed, so if I were to do it don't offer "free"

You give agents free leads, they have a tendency to call one or two and if they don't get a lay down, they throw the rest of the leads in the circular file because they are "no good"... If you are bent on giving free leads then make them contingent on production.. You produce X AP and you get two free leads..

 

[bigjake]

You give agents free leads, they have a tendency to call one or two and if they don't get a lay down, they throw the rest of the leads in the circular file because they are "no good"... If you are bent on giving free leads then make them contingent on production.. You produce X AP and you get two free leads..

I agree. I buy leads for myself and other agents. I do not have time to wait until someone spends their money on a "cheaper" way only to find it ineffective, or worse, they don't take any action for a month, or want to wait until they have more money to spend, etc. I have already done that myself. Slackers are slackers whether they buy their leads or not. As long as someone tries and actually produces something, I am happy.

My logic is that if I am sitting on 120% contracts, they do me no good unless I am leveraging them. I see no reason to take someone else's commissions or renewals unless I have invested something myself. The other guy's gas, time, and sales ability should make up the cost. If not, then he/she will be looking in the want ads soon enough anyway.

I suppose I am just old-fashioned. There was a time when insurance companies spent money on the agents, provided all the materials free, and postage was 22 cents. But commissions were only 55-65%, so there is always a catch. But to allow someone to make 80% (or more) with good leads is fair. I start at 70, but other day put someone at 100 because they were "doing their own thing". I'll see what happens in a couple of months.