Medigap Leads?

Apr 18, 2019

  1. lookingformentor
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    lookingformentor New Member

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    Hello Y'all, I hope you are having a great day.

    Question; what medigap lead companies do you like best?


    Thank you,
    DBC
     
  2. XpressInsurance
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    XpressInsurance Super Genius

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    None of them, you can try them for while might have some success then the quality seems to drop off. So hit & miss, at least it has been for me.
     
  3. DS4
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    DS4 Guru

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    You can purchase “Exclusive” leads. You will then be the 7th agent to call the lead.
     
    DS4, Apr 18, 2019
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  4. Travis Price
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    Travis Price Guru

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    So, when I first jumped on the forums I utilized the search tool. There’s a lot of great threads about leads. The summary is essentially, the ones you don’t generate yourself suck.

    However, as a new agent it’s pretty hard af to generate leads without a book/relationships to build referrals or add-on sales.

    Plus, most times you’re starving anyway because there was no plan to enter the market. So, I’ll lay out my thoughts, and I could be off because I’m new like you. Also, I’m sure I’ll get corrected if I am ;):

    So based on my research, you’re looking at an acquisition cost of around 200 dollars per new client. That means you’re just trying to break even on new clients in year one (you might get $70-100 per client first year, but break even is goal, everything else is cherry)

    Example: leadheroes charges $15.00 per telemarketed lead. These are advertised as exclusive. TM closing rates are maybe 5-10%. You need at least 20 a week to make a sale, on average.

    $120 premium x 22%= $26.4 monthly/316.8 annually for one sale.

    Lead costs are 20 x 15 (there is an association or IMO’s that can get you 10% off your order) = $270-300 per 20.

    You could also cut this lead cost down to around $9 per lead if you hire your own telemarketer, but you’re doing training, evaluation of skill, hire/fire, etc. It can be worth it if you’re willing to take it on.

    DM: 1000 mailers are around $470. Return rate is 1.5-3%

    So, around 20-30 dollars per lead, 15-30 leads. Maybe a closing ratio for a new agent of 10-20%, depending on if you’re going on appointments or over the phone.

    Cost of acquisition using median numbers

    20 leads/15% closing/$23.75 per lead

    316.8 x 3= $950-470= $380 annual commission, cleared first year.

    Cost of acquisition: around 154.38.

    Telemarketing leads are cheaper, but harder to close because it’s more interruptive. DM is more expensive, but warmer.

    What about Internet leads?

    Eff that. Too much competition and too expensive. Unless they come from your website, the it’s the best ROI around if it’s organic, it just takes a lot of work to get to the point of getting traffic and 6m to a year before you see any fruits to your labors. I’d stay away from CPC traffic. It can get pretty crazy.

    Long story short, the best lead to buy is the one you’re willing to generate for yourself. They’re usually more “exclusive” (although almost no lead is truly exclusive.)

    Also, don’t throw away leads. If you can get them to give you their current rate and provider, you just have to wait for a rate increase. Then you’re really getting to exclusivity.

    I hope that helped, although I didn’t really give you a lead vendor.

    If I were to use a lead Vendor, I’d go with LeadHeroes. Glen comes across as super supportive to the insurance industry. If you order 100 and your IMO gets a discount, you’re looking at $9 a TM lead without having to hire/train/fire/rinse/repeat. That being said, I haven’t used his service.

    *I’m not selling anything*

    However, I would seriously consider a long term lead strategy. TM/DM is not it. It’s good if you need to make sales now.

    In my local area, my competitors are soft on digital/content marketing. Instead of buying leads, I bought SEO products to help write quality content and make my website faster than my competitors on mobile/desktop. Short term, it’s expensive without a lot of inbound revenue. Long term, I think it’s going to give me a competitive advantage.

    I’m fortunate that I can wait for SEO to do its job. That’s not something I would suggest for everyone. However a healthy mix is always good.

    I consider marketing like war. I can send out I’ll prepared soldiers. They can get enough kills and I can win the battle, then I have to replenish constantly. Or I can recruit once, train them properly, and give them the best equipment. They go out and win the war and have less casualties. I’m replenishing much less.

    Just food for thought.

    Also, if anyone more experienced has a different opinion, I’d probably go with them.

    Thanks,

    Travis
     
    Last edited: Apr 19, 2019
  5. lookingformentor
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    lookingformentor New Member

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    Thank you all I love your insight Travis.
     
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