Leads... What makes them 'high quality' and how much should I pay?

[Jack Charles]

What exactly is it that makes a lead 'high quality?'

What monetary value is a high lead?

Also, what should I pay for one of these 'high quality' leads?

 

[STIBROKER]

high quality is a myth..........

 

[Jack Charles]

Why is it a myth? Surely if you can get a high quality, more qualified lead the value is much higher?

 

[STIBROKER]

Why is it a myth? Surely if you can get a high quality, more qualified lead the value is much higher?

you can not buy a high quality lead.....only high quality leads come from the ones you develop and cut out the middle man and the competition.....if you think the lead you buy is only going to you.....think again......

 

[Jack Charles]

If you buy directly from a lead generation company then obviously the lead is going to be sent elsewhere also. But if the lead is yours only then it’s high quality?

 

[STIBROKER]

But if the lead is yours only then it’s high quality?

and were do you get this lead..........

 

[InfinityLeads]

What exactly is it that makes a lead 'high quality?'

What monetary value is a high lead?

Also, what should I pay for one of these 'high quality' leads?

There is most definitely such thing as a high-quality lead!

A high-quality lead is:

*targeted (i.e the med supp lead just turned 65, the home insurance lead being a homeowner or someone looking to purchase a home, the lead for an agent that sells in California is based in California)

*exclusive (not generated and then immediately sold to 10 other agents)

*real-time (fresh, generated when the prospect is looking for the service)

The value of a lead (in insurance) depends on the client lifetime value.

Example:
An auto insurance prospect that has 2 cars and stays with you 5 years is worth let's say $1,000 over the lifetime of the relationship.
Why would you squawk at paying $20/$30 to acquire this new customer?
The time value of the $1,000 today is likely ~$500, but that's still a lot less than the 20/30 dollars.

Another example:
A commercial insurance prospect that will bring you $10k/yr in commissions and on average your commercial lines clients stick with you for 10 years.
Mathematically speaking, this is $100k over the course of 10 years or discounted to today somewhere near half to 2/3 of that so $50k+


What you should pay varies greatly between industry and type of lead

But let's talk about how you'll measure your ROI using the commercial example.

Let's say there's a 3-day conference for construction workers coming up this month. A ticket, hotel, etc. will cost you $10k all in to attend.

And while you're at this conference you'll speak with 25 construction company owners.

10 of them will agree to have a meeting with you.

7 of them actually get around to having the meeting with you.

You close 3, all for $10k/year in commissions with a client lifetime value of $10k/yr * 10 years.

Doing the math, you invested $10k to attend this conference. This conference created $30k in commissions for you this year. And $300,000 in commissions over a 10 year period.

Now are you starting to see the value of a lead?

Also, let's not forget, we haven't factored in the fact that these construction company owners:

own cars, houses, boats, etc.
are looking to grow their businesses YOY
have friends they can refer you to

But when measuring value, we also have to factor in opportunity costs:

you could have spent those 3 days cold calling and closed 3 new clients (how likely is that?)
you could have spent those 3 days doing nothing and saved $10k
you could have purchased $10,000 worth of commercial leads at $100/lead and closed 3 new policies
you could have spent $10k to go to a different conference and not close any new business


So it's really hard to talk value/pricing but I hope that gives you a 30k ft. overview.

Also, don't let anyone tell you there's no such thing as a high-quality lead.
The marketing channel can only bring the agent/agency to the pond. The marketing channel cannot make the agency/agent drink.

Think about it, if the agent complains about the quality of leads, and the quality of the conference/event, and the fact that no one picks up the phone anymore, and the fact that everyone is throwing away his/her direct mail pieces

is it the lead? or is it the agent?

Sorry for going off on a rant... But hope this gives you a clear picture!

 

[somarco]

High quality leads are the ones I generate myself.

 

[InfinityLeads]

High-quality leads are the ones I generate myself.

Agreed.

Hence why Infinity Leads isn't a 'lead vendor' and why we focus on giving insurance agency's in-house systems to generate their own leads, digitally.

 

[WinoBlues]

What exactly is it that makes a lead 'high quality?'

What monetary value is a high lead?

Also, what should I pay for one of these 'high quality' leads?

What = someone that ask me if I would please sell them insurance.

Cost = I have a couple for $1,000.00

Email me for details.