Marketing allocation/month

[Chadcs]

What do you guys recommend for a monthly marketing budget as a % of sales?

Where's the best bang for your buck and/or what methods are you using?

Thanks - Chad

 

[Crabcake Johnny]

Re: Marketing allocation/ month

In general $1 returns $6 for a $5 net profit - $100 = $600 net $500.

So your marketing budget depends on your goals. If you want to net $1,500 per week then you'd need to budget $250.

Most agents are buying internet leads.

 

[The Rabbi]

Re: Marketing allocation/ month

In other words, 10 - 25 % lead cost depending on your skills.

 

[Peter Ryan]

This is a tricky question.

The right answer is whatever you can afford to buy clients for.

What's the lifetime value of a client for you?

I was selling policies with an average commission first year of 1000 bucks. Assuming 80-90% retention, they stick around for 8 years, that's 8k. So should I be willing to spend ALL of my first year commission (1k) to get 7k?

Of course.

Now when I started out, I couldn't afford to spend 100% of the first year commission to buy clients. Most can't. So you have to find a balance.

But the smartest marketers understand the long term value of a client, and are willing to spend (invest) more to 'buy' clients.

Peter

 

[Delta76]

But the smartest marketers understand the long term value of a client, and are willing to spend (invest) more to 'buy' clients.

And to keep clients. Good post!

 

[OnTheFrontLines]

Peter Ryan is obviously a very smart marketer.

Not because I agree with him, but because what he says makes sense.

The mind set of the purchase of a policy is not the purpose of the sale, but the purpose of the sale is to in addition to helping the client, but also to initiate the life-time relationship which provides the life-time value of the client.

Too many agents see the sale as the goal, but the real goal is to get the client!

Good post Peter.

 

[David C]

Delta76,

Great point. The lifetime value of a client can be mind boggling.