Lead Closing Ratio

I always measured mine by the amount of money spent on leads versus the amount of money I made on those leads. Seems to me that should be the only measurement for ROI. My investment in dollars versus the amount of money I made on those dollars. In the end, that's all that really matters, right?

Well that's really a little short sighted. Shouldn't you want to know your closing ratios for those lead vendors? Shouldn't you want to know which company you make the most money on and then focus on selling more of those leads?

Take the way my 4 year old learns: He asks "Why does that do that" instead of your approach of "Well this is all that matters to me"
- - - - - - - - - - - - - - - - - -
These numbers are probable, if you only count leads you contacted. The problem is if you factor the math correctly out of the gross lead volume, you end up with like 20% of 20% before you credit leads. It may just be a simple difference in how he's doing his math. I close around 25% of my CONTACTED leads, I could say I close 25%. If I start throwing in the stats from the bad leads, impossible to contact leads, ect though, you end up with a 10% or less sale rate. Hell if I REALLY wanna make the numbers look stupid, I could divide the number of policies I sold by the number of leads I contacted, last month I had 33 policies sold on 28 contacted leads, that a 118% close rate!

The real number last month was 77 total leads, 11 leads sold. A lot of medicare in there. That's 14%, which I figure is damn near astronomical. This month down significantly. 4 sold, 114 total leads, 79 total good leads, with 31 pending quotes. I increased my lead volume, a lot, because I was sitting bored last month a lot.

This is probably just a difference in stats. Its barely possible to contact 20% of the leads without a 6 stage autoresponder and 3 phone calls over 10 days. My connect ratio is still sitting at 70% but I'm really really really on top of it.

A new person starting out, feel good if you connect with 20% and sell 20% of those. Make sure to track and report your bad leads, so the ROI doesn't bend you over and violate you. On medicare only you can close almost 40% of the ones you connect with as long as you have a good med supp provider, and even get a lot of multi policy sales.

My real numbers over the last 3 week period are this: 73 leads, 15 sales. You do the math and thats over 20%. I haven't actually caught up my tracking to include last week or the current week but I only bought a few leads and sold a couple with some other projects I had to work on. And wrote another 3 today.

SO IF YOU REALLY WANNA MAKE ME LOOK STUPID:
You shouldn't put something out there that you don't know that answer to already, but that's a little more advanced sales techniques that not all of us possess.
 
Last edited:
Well that's really a little short sighted. Shouldn't you want to know your closing ratios for those lead vendors? Shouldn't you want to know which company you make the most money on and then focus on selling more of those leads?

WTF? ROI is return on investment. It's not measuring closing ratio's. I know my closing ratios as discussed in another post. As for which lead company worked best for me, I only used one for Med Supps so I know EXACTLY what my closing ratio and ROI was for that lead company. Thanks for the advice, rook.

Take the way my 4 year old learns: He asks "Why does that do that" instead of your approach of "Well this is all that matters to me"

Looks like someone else is getting in the d*ck measuring contest. My reply was to djs and was SPECIFICALLY related to ROI. Tell me this boy wonder, when calculating your ROI, how do you do the math? Do closing ratio's have anything to do with the ROI? Does a 25% closing ratio have any bearing on your return? Not really. If you close 25% and only make your money back on the cost of ALL of your leads, you have no return on your investment. So to calculate the ROI you need to know two things, how much you spent on ALL leads and how much you made on all of those leads. Not that complicated.

Now, if I were getting leads from multiple sources, it would be important to track each separately in order to know which vendor to keep and which to dump. But since I didn't use multiple vendors, made no difference to me. Anytime you want to remove that large chip from your shoulder, feel free.
 
You just said you doctored the math. The month I sold 33 polices on 77, I closed 43% by that math, even though I only sold 11 of the 77 leads.
 
SMan It's ok if this is taking you a little while. I was referring to using multiple companies and all stats are important in what your ROI turns out to be.

You should think through the math that results in ROI...One more sale for the same amount of money= Greater ROI
(I know very complicated math and all!)

If you can increase your closing ratio Mr. Badass Veteran what will that do for your ROI?

Just pointing out that at the end of the day your ROI is important but your CLOSING RATIO'S directly affect what that ROI is....so before you go on a rant about not knowing the most basic of business terms read what I wrote!

Being a smart ass about my 4 year old's ability to want to learn is not really a pissing contest. While I do admit, it was a rather smart ass comment but I probably wouldn't be in sales if It wasn't for that ability.

LOL...Sorry that the worlds changing and your having a tough time adapting or don't care.

BTW: If I'm still selling insurance in 20-30 years I would consider my career a failure but that's just my way of thinking.
 
Dude, you really are majoring on the minors. I can be a smart ass with the best of them, but I'll leave that for you this day. In 20 years, you may find you love this "job" as much as I do. You know, playing golf twice a week, working off of referrals and referrals alone and taking multiple vacations per year. If that's a failure, then label me a failure. Enjoy your career.
 
"If I'm still selling insurance in 20-30 years I would consider my career a failure"

Actually...some of the highest-earning brokers could have retired long ago...and elect not to.

WebNanny was used in this post
Webskeptic was used in this post
 
Dude, do you even realize how ridiculous this looks? Did you really throw out how much you make? Seriously? WTH?

What's next dropping your pants and getting the ruler?

You've got a skill that is accomplishing a better result than mine?

My renewals - without selling a single new policy this year -will be over $80,000. In addition, I'll write 100-150 new applications.

My skills were superior to yours back when someone was still wiping your ass.

How 'bout you? Wanna compare 1099s?

Yeah, it's real tough to swallow.

And Ryan
, a piece of advice from someone who went through the same thing you are, and reacted the same way. Be the better person, don't turn into them or let them win.

He who angers you, conquers you. ~~Elizabeth Kenny
- - - - - - - - - - - - - - - - - -
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Well said my friend, as usual.

:1biggrin:


"If I'm still selling insurance in 20-30 years I would consider my career a failure"

Actually...some of the highest-earning brokers could have retired long ago...and elect not to.

WebNanny was used in this post
Webskeptic was used in this post
 
Last edited by a moderator:
Ha ha totally, I've also handled many an "objection" over a night's sleep or in the shower, good post!!

Focus on your reaches. Try to talk with 40 people a day. Even if you foul up the "talk". Save their names and call them once you have polished your "talk" up. You know you have your phone script down when you start to dream about your cold calling. Safe Hunting.
 
How 'bout you? Wanna compare 1099s

That is a FANTASTIC IDEA. Let's cut through all the nonsense, bragging, and fantasy.

I will post my tax returns for 2007 and 2008. Who else is in? Who else will put their actual results where their mouth is? I will set up an email address in Yahoo, scan my returns and send as an attachment. I will post login and password here for all to see. Who's in???? I bet there are not 5 people who will oblige.
 
Back
Top