Marketing allocation/month

Jun 27, 2008

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  1. Chadcs
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    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
     
    Chadcs, Jun 27, 2008
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  2. Crabcake Johnny
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    Crabcake Johnny Guru

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    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.
     
    Last edited: Jun 28, 2008
  3. The Rabbi
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    Re: Marketing allocation/ month

    In other words, 10 - 25 % lead cost depending on your skills.
    :cool:
     
  4. Peter Ryan
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    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
     
  5. Delta76
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    And to keep clients. Good post!
     
    Delta76, Jul 1, 2008
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  6. OnTheFrontLines
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    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.
     
  7. David C
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    Delta76,

    Great point. The lifetime value of a client can be mind boggling.
     
    David C, Jul 3, 2008
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