True, but when you consider the commission haircut the OP is taking, she has a "honey" of a deal..
Lincoln Heritage Question
- Thread starter Falcon52
- Start date
True, but when you consider the commission haircut the OP is taking, she has a "honey" of a deal..
- 15,041
True, but when you consider the commission haircut the OP is taking, she has a "honey" of a deal..
For the manager, sure.
Now if there is some top notch training that comes with the haircut, it is worth every penny. If she gets thrown out to sink or swim on her own, not so much.
- 19,648
They do their own mail so it costs them around $300/1000. At a 1% return, {which most claim is average for FE mailers, it's way less than that here}, the leads cost them $30 each. Any price below that is subsidized leads. In an area like mine it's going to cost them around $50 per lead to generate.
That's all at a $300/1000 cost. If an IMO is using a warehouse to mail for them then the costs per 1000 are going to be around $400.
It's only as a sole proprietor that you have to pay north of $400/1000.
- 15,041
So if they get 1% return, either they are barely subsidized or you are paying a premium for them. Again, with that steep a haircut on commissions, there better be some fantastic training to come with it. Great training and it is a good deal, bad or no training and it is a horrible deal.
- 19,648
I agree. Great training is tuition. Everybody busts on NAA but I got fantastic training with the group I was with.
I'm just pointing out that the leads are subsidized. The value in that subsidy is always up for debate.
Lh and others really don't care if its a good deal for the agent or not. It is a system to come in for the agent to drink the koolaid and learn the ropes. There has been discussion if they actually make money on the leads they sell to agents since they have there own lead house. This still is debatable since I believe they recycle and sell as new and force leads every week to you.
- 19,648
I know when I was LH I got leads that my manager had already worked. They couldn't really recycle them then because they sent you the actual card that person returned. Not a copy. I don't know if they still do that or not.
He didn't have GPS so he would write directions on the cards when he was working them. He was a doorknocker. he wrote it in pencil and then tried to erase the directions when he sent them to me and charged me for them. Sometimes he would forget to erase.
He was a straight up crook. Can't really blame that one on LH except that he was a manager for them. They probably have some decent people that are managers. he was just not one of them.
- 2,452
Now you're recommending Lincoln heritage good grief just when I thought you couldn't get any more ridiculous
Wow, that is really shady of a manager to do that. Mine with LH was a 420 head and his game plan was too keep the young guys hooked on it by supplying it free every night.
- 897
LH doesn't actually "recycle" the leads...but close to it. Here's how it works folks:
They have about 3-4 different types of DM leads. PLUS, their TV commercial. They drop ONE kind of lead in an area for let's say 90 days. At the same time, running their commercial. The next quarter, they will drop the same people but with a different mailer. Kind of genius. Think about it. If you always drop the same mail piece to the same people, the ROR will drop. But our clients don't realize it's the same thing. So...they mail, mail, mail back every lead.
Now, great idea on LH part. That's how they get SOOOOO many leads for their agents. But the agent's get screwed because the managers hire like crazy not thinking about how they can keep agents busy with fresh, new leads. So agents are always stepping on each other's toes running into the same people but running different leads. So the agents first thought is "Damn...they are recycling these leads!" Yes and...no.
What agents don't understand is that there is no better DM lead system than the next one. The demographics are all the same. Everyone is mailing to the same people. It comes down to the demographics they are mailing to. Not the lead itself.
They have about 3-4 different types of DM leads. PLUS, their TV commercial. They drop ONE kind of lead in an area for let's say 90 days. At the same time, running their commercial. The next quarter, they will drop the same people but with a different mailer. Kind of genius. Think about it. If you always drop the same mail piece to the same people, the ROR will drop. But our clients don't realize it's the same thing. So...they mail, mail, mail back every lead.
Now, great idea on LH part. That's how they get SOOOOO many leads for their agents. But the agent's get screwed because the managers hire like crazy not thinking about how they can keep agents busy with fresh, new leads. So agents are always stepping on each other's toes running into the same people but running different leads. So the agents first thought is "Damn...they are recycling these leads!" Yes and...no.
What agents don't understand is that there is no better DM lead system than the next one. The demographics are all the same. Everyone is mailing to the same people. It comes down to the demographics they are mailing to. Not the lead itself.
