Leads And Numbers

[ameneses54]

Leads are a tricky business and what you usually hear is that's it's "a numbers game".
I'd appreciate feedback on the following numbers:
-Shared leads. What % will be valid?
-Shared leads. What's the closure rate for newbies and experienced agents.
-Same as the above for exclusive leads and telemarketed leads./
-What is an acceptable ROI?
-What is an average cost per sale?
I know that my questions have no absolute answers, but an average would be welcomed.

Thanks

 

[somarco]

valid - maybe half if you are lucky
close - much higher for experienced agents
exclusive valid - slightly higher than 50%
exclusive close - higher than shared, ROI is about the same
acceptable ROI - whatever you can live with. 3:1 is the lowest I will go. 5:1 is decent, but I shoot for 8:1
acquisition cost - for me, when I was buying leads, about $70

 

[russelltw]

Somarco,

Regarding validity of the leads, my quoting software allows me to know how many times the client looks at the quote (it's offered thru the company). I would bet that less than half of my leads even look at my quote. That leads me to think these may be junk leads...

Mine is about the same for cost to acquire. I have not thought of the exclusive lead idea from the aspect of having fewer leads, higher cost for lead, slightly better ROI, but more importantly - less time working those leads.

I have shared leads, but this has me thinking of giving exclusive a try to see what ROI and time spent on the return. I think that is something we don't include in the equation. If you work 50 hrs a week working leads, and you can cut back to 40, I would say you have to factor that in to the over ROI, quality of life factor maybe...

 

[moonlightandmargaritas]

I would bet that less than half of my leads even look at my quote. That leads me to think these may be junk leads...

Or maybe they've already looked at the quotes from the other 42 agents that sent 'em?

 

[TXINSURANCE]

50% shared leads "valid"? Show me the provider.

 

[somarco]

Valid = working phone number and email. Beyond that it is anyone's guess about the other half.

 

[thecatcher]

From my experience the leads aren't necessarily bogus, I just think most of the people who fill out the form are probably curious about life insurance and then get hammered by calls from agents.

 

[Life Hawk]

valid - maybe half if you are lucky
close - much higher for experienced agents
exclusive valid - slightly higher than 50%
exclusive close - higher than shared, ROI is about the same
acceptable ROI - whatever you can live with. 3:1 is the lowest I will go. 5:1 is decent, but I shoot for 8:1
acquisition cost - for me, when I was buying leads, about $70

somarco, found this post while doing some research. Just wondering if those ROI ratios are still in line with what to expect for an agent today?

 

[somarco]

somarco, found this post while doing some research. Just wondering if those ROI ratios are still in line with what to expect for an agent today?

Slow weekend in Life Hawk land? You must have a very boring life. Sunday afternoon reading posts from 2009.

I spent the day watching old movies with my wife . . .

The post is 10 yrs old!!!

I haven't bought leads in years. Can't address the other comments. No idea what to expect with shared leads. At that time I was probably still buying internet leads. That was before they all ended up in the crapper.

As for your ROI question, mine is different now. Leads (still internet) are self generated. No hard dollar costs, only soft dollar. I have a lady who helps with my YT channel, newsletter, etc.

I do pay her but it is not per lead or anything like that.

So . . .

My monthly investment for her services run around $300, give or take. I average around $800 (annualized) in new non-referral commission sales. That translates into $70/month as earned. With referrals you can double that.

I don't keep ROI figures like I used to. Takes me about 5 months to earn enough to cover that $300 investment.

All Medigap so you are looking at a 7 year income stream. That kicks up the ROI to $5600 on a $300 investment.

Medigap is seasonal. Work your butt off the last 3 months of the year. Slows down around May then picks back up in September.

Some months I may only have 1-3 sales. During AEP around 8. A few years ago I would write 40+ during AEP but I don't work as hard as I used to. And I don't chase sales. I let them come to me.

I am all about residual, not FYC. Different business model from most of the agents here.

Hope this helps.

 

[TIMOTHY SEBASTIAN]

This is probably a stupid question, but what does AEP have to do with Medigap sales? I thought it was only for MA.