Live Transfers from digbga

[WinoBlues]

OUCH!!!

How so?

 

[titeye]

How so?

When I apply the math, that's almost $2,000 for 30 tv leads/week.

 

[WinoBlues]

When I apply the math, that's almost $2,000 for 30 tv leads/week.

Got it. I thought you were referring to the part above the TV Leads. I have no idea what a TV lead cost. Personally, I would pay $10 or $100 per depending on the quality.

 

[JRoot]

When I apply the math, that's almost $2,000 for 30 tv leads/week.

Would you spend $1950/week for 30 TV leads to make $6,534 in IMMEDIATE cash flow (just counting advanced commissions) every week? So profiting $4,584 per week sitting home and fielding call ins of people wanting to buy final expense life insurance. Sounds pretty cush to me and these numbers are just average.
___

I'll copy and paste the stats we shared internally recently on these TV Leads.

Price: $65
Average Premium: $1200
Average Agent Closing Ratio: 22% (19.2% Unique Close. 1 out of 7 sales get the spouse)
Seasoned Agent Closing Ratio: 27% (24% Unique Close. 1 out of 7 sales get the spouse)

Cash Flow for Average Agent

Average Acquisition cost: $295 ($65 divided by 22%)
Average First Year Advance: $990 for level business ($1200 AP x 110% commission x 75% advance)
Profit: $695 per "level" sale immediately on the advance. ($990-$295)

_

With that said, we're the only game in town for independent agents working final expense TV leads. Everyone else shut down their programs due to rising costs from all the vendors they all leveraged. We produce our own commercials and run our own media so we don't have to pay the markup the other agencies were paying. Granted we invested a ton to figure this out.

Our top 3 agents last month working these issued over $50k on 110%+ contracts. Fielding TV calls. Maybe in their underwear.

 

[somarco]

Maybe in their underwear.

 

[titeye]

Would you spend $1950/week for 30 TV leads to make $6,534 in IMMEDIATE cash flow (just counting advanced commissions) every week? So profiting $4,584 per week sitting home and fielding call ins of people wanting to buy final expense life insurance. Sounds pretty cush to me and these numbers are just average.
___

I'll copy and paste the stats we shared internally recently on these TV Leads.

Price: $65
Average Premium: $1200
Average Agent Closing Ratio: 22% (19.2% Unique Close. 1 out of 7 sales get the spouse)
Seasoned Agent Closing Ratio: 27% (24% Unique Close. 1 out of 7 sales get the spouse)

Cash Flow for Average Agent

Average Acquisition cost: $295 ($65 divided by 22%)
Average First Year Advance: $990 for level business ($1200 AP x 110% commission x 75% advance)
Profit: $695 per "level" sale immediately on the advance. ($990-$295)

_

With that said, we're the only game in town for independent agents working final expense TV leads. Everyone else shut down their programs due to rising costs from all the vendors they all leveraged. We produce our own commercials and run our own media so we don't have to pay the markup the other agencies were paying. Granted we invested a ton to figure this out.

Our top 3 agents last month working these issued over $50k on 110%+ contracts. Fielding TV calls. Maybe in their underwear.

JR, I was not criticizing your price on the leads. You are in business to make a profit. Whatever you have to charge to be profitable is all that matters. I was only stating that it was expensive only from my perspective as a business owner.

I see nothing wrong with the closing ratios that you posted. However, the average premium per client does seem abnormally high. The average annual premium for a FE policy has been $600 for quite some time. In order to average $1,200 in premium consistently, not only does a significant number of those have to close above that amount, they must also stay on the books.
Currently, my live transfer tv leads are $35. At $65 per lead, that would be too expensive for me, personally. However, if an agent is able to obtain twice as much premium than what the average FE client typically pays, then I would consider their cost vs. mine 6 in one hand, half a dozen in the other and very reasonable. We would net the same income, all other things equal.

Again, I am just speaking from my perspective only. No disrespect for what you guys have accomplished.

 

[titeye]

Got it. I thought you were referring to the part above the TV Leads. I have no idea what a TV lead cost. Personally, I would pay $10 or $100 per depending on the quality.

As far as quality, I have not notice any difference from one FE TV commercial versus all the others.
How can you make money on $100 per lead though, or were you only kidding?

 

[DonP]

There was a guy on the board a few weeks ago doing $15-$20k a month and only netting $4-$6 k after lead costs and “ lapses” doing telesales . I’m pretty sure he’s a Root agent . All us face to face fe agents know the amount of in person effort it takes to save many fe nsf’s. I know with mortgage protection it’s different dealing with higher end . I’m amazed how many policy’s in both mapd and life are sold over the phone .I play local service up and it works like a charm.

 

[JRoot]

However, the average premium per client does seem abnormally high. The average annual premium for a FE policy has been $600 for quite some time. In order to average $1,200 in premium consistently, not only does a significant number of those have to close above that amount, they must also stay on the books.

Great observations. I was waiting for someone to call out the $1200 average premium on an FE sale.

It's due to a combination of our TV ad copy and script. Our commercial is based on how much death benefit you can get vs how cheap it can be. Some calls will ask the agent for $35,000 of coverage.

Our average premium agency-wide is $940 because of our script. There are several agents who used to be on this forum who were at $700 average premium their entire career as f2f and switched up to our scripting and it increased to over $900. It just happens to be much higher for our TV leads because of our TV ad copy.

I'll catch some flack for this, but I'll say it anyway - a lot of the final expense presentations out there are stale. They've been the same for so long. We keep optimizing our scripting and just released a new version yesterday based on agents with the highest closing percentages and highest avg AP and what they're saying. These are small optimizations to our current script, but they go a long way.

As far as quality, I have not notice any difference from one FE TV commercial versus all the others.

We initially started by using 3 ad copy variants that everyone was using (you can find them by searching "final expense" on iSpotTV). That produced an average premium in the $900 range with the same closing percentages - wasn't that profitable for us to start. We kept testing and once we switched to our current ad copy that coincides with our scripting of focusing on the death benefit (not cost) AND a greeting when they call in while waiting for an agent to pick up that reinforces the power of final expense life insurance, we got to the $1200.

There was a guy on the board a few weeks ago doing $15-$20k a month and only netting $4-$6 k after lead costs and “ lapses” doing telesales . I’m pretty sure he’s a Root agent .

That's not typical for that level of production. I don't know who you're talking about (didn't see the post), but that could be a number of things - writing too much GI/Graded or below average on closing ratios etc. The agent doing that is well on their way to making it if they can work with their coach to identify some of those issues because that is absolutely not typical.

We had a brand new guy write $30k-$40k+ per month during his first 3 months and leave the business because he wasn't profiting as much as he was in real estate. We found he was writing way too much GTL/GI business, not using SS drafting and shortcutting the script (not building enough rapport, no button up, no policy reviews, not asking for referrals etc). A few tweaks and he would have been raking, but he just wanted to slam apps and this business isn't for that type of agent.

All us face to face fe agents know the amount of in person effort it takes to save many fe nsf’s

Us telesales agents know too. It's critical work and many agents don't put enough effort into it...so we had to build out a conservation team.

 

[theinsuranceman]

Great observations. I was waiting for someone to call out the $1200 average premium on an FE sale.

It's due to a combination of our TV ad copy and script. Our commercial is based on how much death benefit you can get vs how cheap it can be. Some calls will ask the agent for $35,000 of coverage.

Our average premium agency-wide is $940 because of our script. There are several agents who used to be on this forum who were at $700 average premium their entire career as f2f and switched up to our scripting and it increased to over $900. It just happens to be much higher for our TV leads because of our TV ad copy.

I'll catch some flack for this, but I'll say it anyway - a lot of the final expense presentations out there are stale. They've been the same for so long. We keep optimizing our scripting and just released a new version yesterday based on agents with the highest closing percentages and highest avg AP and what they're saying. These are small optimizations to our current script, but they go a long way.



We initially started by using 3 ad copy variants that everyone was using (you can find them by searching "final expense" on iSpotTV). That produced an average premium in the $900 range with the same closing percentages - wasn't that profitable for us to start. We kept testing and once we switched to our current ad copy that coincides with our scripting of focusing on the death benefit (not cost) AND a greeting when they call in while waiting for an agent to pick up that reinforces the power of final expense life insurance, we got to the $1200.



That's not typical for that level of production. I don't know who you're talking about (didn't see the post), but that could be a number of things - writing too much GI/Graded or below average on closing ratios etc. The agent doing that is well on their way to making it if they can work with their coach to identify some of those issues because that is absolutely not typical.

We had a brand new guy write $30k-$40k+ per month during his first 3 months and leave the business because he wasn't profiting as much as he was in real estate. We found he was writing way too much GTL/GI business, not using SS drafting and shortcutting the script (not building enough rapport, no button up, no policy reviews, not asking for referrals etc). A few tweaks and he would have been raking, but he just wanted to slam apps and this business isn't for that type of agent.



Us telesales agents know too. It's critical work and many agents don't put enough effort into it...so we had to build out a conservation team.

Would it be fair to say the reason for the ave. $1200 AP per sale is the selection of TV programs that your commercials run in? Does your commercial run nationwide or in certain states? Thanks in advance.