Lead generation costs

[agent4sail]

bcb, please explain your system,

"on my retail side, I spend about $1300 per month on shared leads. I have been buying around that range since 2004.
I have my own lead company which is separate from the insurance agency. I have developed a particular strategy for buying leads in bulk, most of which I resell. Usually for about 3 to $4."

Does your $1300 buy the shared leads that you purchase in bulk? I'm not clear on the 'bulk leads'. Do you then resell these same shared leads again? What kind of leads do you sell for $3-4? Thanks.

 

[Paradigm]

Through all lead marketing I currently spend about 900 a week which purchases 125 leads 20% are bad leaving 100 at an average cost of 7 for atotal net expenditure of 700.00

I return the 20% bad leads for credit

I close 1/8 leads on average for 3600 AV

avg sales per week is 15x3600=54,000 AV sometime less if I shut leads off friday to hit the links

average comp is 20% so 10800 generated comm a week at 80% persistency = 8,000-9,000 net per week after lead cost

The key is automating as much as possible use act or prophet of even ida figure u will spend 400+ on automation software.

Create drip marketing so leads yet to be resolved are auto emailed at the push of one button each day

Yes, Barack Obama considers me rich LOL

 

[Paradigm]

The key to control a large level of leads is practice start with 5 or 10 per day and increase as you become comfortable. You must automate otherwise your marketing dollars will be wasted because leads will fall through the cracks. To make a large amount of money you must run this business at least 4 days a week.

 

[agent4sail]

Paradigm, your help is truly appreciated, as are the previous postings from others.
Do you buy shared leads? Is your 1/8 close ratio based on shared leads? This is a great closing ratio! I would be very interested and will appreciate you sharing your lead source with me. PM me if you wish. Again, I certainly do appreciate your help.
I am currently looking at management software. I have seen the various threads and posts regarding CMS, and am curious, what makes one CMS better than another. What automation software are you using? Is there one program that does all of your contact management, or do you use several different programs/providers? I like Norvax but think it is overpriced. Do you know a competitor, or a software program available, that replicates Norvax capabilities?

 

[moonlightandmargaritas]

Do you buy shared leads? Is your 1/8 close ratio based on shared leads? This is a great closing ratio!

Don't worry about "closing ratio".

The only thing that matters is your return on investment.

Let's say we each buy 10 leads...

You write three cases (each $1,200 of annual premium @ 20% fyc) for a total of $720.

I write one case at $4,800 annual premium for a fyc of $960.

Your "closing ratio" is three times higher than mine...but I made 33% more money.

 

[Crabcake Johnny]

Paul displays the mentality of a business owner. Does it matter if you own a bar an every seat is taken.....by people nursing a beer?

 

[moonlightandmargaritas]

Does it matter if you own a bar an every seat is taken.....by people nursing a beer?

And probably a draft at that?

 

[Crabcake Johnny]

One of the bars I used to frequent in D.C was classic. If you were taking too long with your beer the bartender would come and put a baby bottle plastic nipple on it.

 

[J.R.]

Don't worry about "closing ratio".

The only thing that matters is your return on investment.

Let's say we each buy 10 leads...

You write three cases (each $1,200 of annual premium @ 20% fyc) for a total of $720.

I write one case at $4,800 annual premium for a fyc of $960.

Your "closing ratio" is three times higher than mine...but I made 33% more money.

Why not incorporate both Paul? You wouldn't' have to worry about 1 client falling off the books since you have two left, so you have therefore spread out your risk.

I do see what you're saying, but disagree becuase it's like telling somebody, "when you're qualifying people make sure you focus on the family with the highest premium."

 

[moonlightandmargaritas]

Why not incorporate both Paul? You wouldn't' have to worry about 1 client falling off the books since you have two left, so you have therefore spread out your risk.

I do see what you're saying, but disagree becuase it's like telling somebody, "when you're qualifying people make sure you focus on the family with the highest premium."

Yes, I would incorporate both, however "closing ratio" is only going to give me info and guidance on the quality of marketing/lead sources, and (maybe) skill at turning them into paying customers.

If someone is at risk from losing one policy or client, that's a "whole other problem" (and a big one!).

Of course you should qualify people according to premium!

There's only 24 hours in every day, and you have to focus your resources and capital (time & money) in the place where they'll earn you the best return...