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

[rousemark]

Could be a tall tale, but I was told Mehdi did that. Riding elevators in NYC and asking that question.

I heard Medhi say it but he was knocking on doors in low income high rise apartment houses and collecting a debit.. My favorite Medhi story is the one where he was having trouble getting past a gatekeeper secretary (this was after his door knocking days).. He would call on the phone, introduce himself as Mehdi Fakharzadeh and ask for his prospect. The secretary would ask, "where are you from?" He would reply, "Metropolitan Life". and that would be the end of the call. Finally, he called and introduced himself as usual.. She asked, "where are you from" and he replied, "Tehran" and she put him straight through..

 

[STIBROKER]

when I was at Met I got the bright idea to market Jack Brown Cleaners Manager's....would call them and tell them I needed to set a time to drop by and explain a new retirement opportunity being made available by Jack Brown Cleaners..... needless to say no sales in three days and a call from Jack Brown to stop calling his stores........

 

[somarco]

"where are you from" and he replied, "Tehran" and she put him straight through..

Yup..

That story is in a recorded interview or speech given my Mehdi.

 

[InfinityLeads]

Infinity is pretty much right on this one.

There are two types of agents. Those who complain about marketing costs, and those who are busy writing business.

That's it. Anyone who is succeeding at any level knows that they must market to survive and it has a cost. Now, that cost varies from agent to agent. Some build and maintain their own websites, some do their own social media lead gen. Some still cold call or walk and talk. Others hit the Chamber of Commerce and other networking events, such as Infinity's Construction Conference. And other still buy leads in some shape or form. And finally the really smart ones did one or more of these and have now built a network of referral sources and clients who refer.

Without a doubt, if you want to succeed, you must market and it will cost you something. Sometimes money, sometimes time, and usually a combination of the two.

But one thing I have noticed. Everyone gets obsessed about closing percentage and cost per lead when it comes to leads. Yet without fail, almost everyone ignores the two real metrics. Cost Per Acquisition and Return On Investment. And even those pale compared to the real one, Net Profit.

Thanks!

And yes, closing percentage and cost of lead is largely irrelevant.
Cost per acquisition, ROI, and profitability are the only metrics.


Here's how to measure ROI of lead gen

How much did you spend on marketing = A $10000
# of leads acquired = B 100
closing percentage = C (always an arbitrary figure) let's say 10% of leads turn into sales

# of sales from marketing = D so 100* 10% = 10 sales

Cost per lead = A/B = $10,000/100 = $100/lead
****Cost per acquisition = A/D $10,000/10 = $1,000 a sale ******

Client Lifetime Value = E= % of commision * premium * # of months
Let's say 10% of 10,000 * 5 year retention (60 months) = 5,000

Current Revenue Generated From Marketing = F, F= D*E = $5,000 * 10 = $50,000*

Therefore by investing $10,000 in marketing, you generated $50,000 worth of commissions over a 5 year period.

Obviously, $50,000 over the course of 5 years isn't the same as $50,000 today. However, it is still safe to assume that the present value of $50k ($30k with a 10% discount rate to be extremely conservative) is a 5x ROI.

You put in $10k, you got out $50k.

This my friends is why you market. The problem with most marketing is you can't track it and it's not effective. This is why digital advertising as a lead source is unmatched in the insurance space. Your big brands spend millions of dollars to dominate these channels every single month because they are basically buying clients when they're searching for insurance online.

 

[rousemark]

Yup..

That story is in a recorded interview or speech given my Mehdi.

You have to hear Medhi tell it in his thick Iranian accent to get its full effect.

 

[ColShareCropper]

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?

what a dumbass statement, you have to buy leads that use ur name, that makes it exclusive and no way can it be resold. I know of only a handful of lead places that do this and i buy from all 3 of them. they are out there

 

[ColShareCropper]

it be funny cuz nun of u guys buy leads AT ALL lol