Quote Wizard Review 2016 Life Insurance Leads

Jun 7, 2016

  1. fla2cali
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    fla2cali Super Genius

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    Long story Short. Around 70% of the Life Insurance leads were bad. That's not an exaggeration. I've attached my account summary. I do have a small sample of 33 leads. But I didn't feel very encouraged to get an even bigger sample. 10%-40% I believe is a more than reasonable expectation of bad leads you should expect to have. But 70%? That's a bit high. I still have 3 credits pending. But I'll get those credited. They were all disconnected numbers.

    Pros vs Cons...

    I'll do Cons first:
    • Majority of the leads were bad.
    • For me, the leads that had disconnected phones were always "first" denied Credit. Strange I know. You would think they would be the most obvious, and easiest lead to get credited. But nope, I had to waste time sending emails, and calling to get them credited.
    • You waste a lot of time over the phone and sending emails requesting credits.
    • So many people said they never requested quotes online.
    • There's more but you get the point..

    Pros:
    • They were generous with the lead credits, but you have to work at it, and prove, and document everything.

    So the Question is, should you use Quote Wizard for life insurance leads?

    Well, that depends on:
    • your risk tolerance, and time you're willing to put into "working the leads." That includes time it takes requesting lead credits. Unfortunately, spend more time doing that, then actually talking to people about life insurance.
    • Your BUDGET. Do you have enough to float you until you close your first deal?
    • Even after you close your first deal, what kind of contracts do you have? Do you have a high enough commission contract to pay for your leads, and make a profit with one or two sales?
    • How are you working the leads. Do you have a good CRM system, to call leads FAST, and follow up with them systematically?
    • What's an acceptable "SALE ACQUISITION" cost for you. That differs from person to person, based on their "RISK TOLERANCE"

    There are other variables of course, but I don't have the time to go into all of them.

    So of the 33 leads. I sold one. It was a simplified issue term. Should hear something by today or tomorrow. Not sure if it will go through. There were issues.

    Set an appointment with another. We'll see if anything comes of that.

    So far my SALE ACQUISITION COST is around $150 dollars to make that one sale. Remember, that deal hasn't been approved yet. But I made a sale. If I make another sale from the appointment I set. Then my SALE ACQUISITION COST will be $75 dollars.

    That's not bad.

    Let's do the math
    I have contracts from 95% to 115% percent.. I'm just going to use 100% contract.
    I don't have enough sales for an Average premium. So I'll just use the one sale I did.

    $75 x 12=$900. With a 100% commission, I get $900. Advanced 75%. I'll get $675 deposited in my account.
    $675-$150 (Sale Acquisition Cost) = $525 Profit. So I spent $150 to make $575, keeping in mind I'll get the additional $225 in months 10-12.

    Seems pretty good right? Sure.. one problem.. The sample size is too small. That lead acquisition cost is probably closer to $250 dollars. With a larger lead sample. Also, one needs to give this at least 6 months. .

    Two things allowed me to keep my cost down. I was diligent with credits. Documenting, and giving good arguments for it. I also had a good account manager. Not the sales rep. But your account manager. I never heard from my sales rep again. I worked exclusively with my account manager.

    So is it worth it? I would say YES it is. But you have to be committed to working this way. Also.. I would want to do this 100% over the phone. Using a good CRM SYSTEM. And a budget that could float you until you build up your sales FUNNEL.

    I want to transition from the field to over phone 100%. When I do that I'll tackle this again.

    That's my two cents.
     

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  2. jwb0007
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    jwb0007 New Member

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    Good thoughts/analysis. Thanks.
     
    jwb0007, Jun 13, 2016
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  3. LGilmore
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    LGilmore Guru

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    What I found with QW was that I was on the phone to them over credits far too much. They never read the information you gave them. Can't tell you how many times when the account manager was on the phone with me and I simply had her pull up the lead and said "read the notes"... a couple seconds and then you hear "oh" and I would be given the credit. While the credit was appreciated, the fact that I had to call them and go over it again with them became a time wasting contest.

    I got tired of it. Nice people but on the phone too much straightening out things that really shouldn't have been an issue.

    I just want reasonable and with internet lead companies that is getting harder and harder to find.
     
    LGilmore, Jun 13, 2016
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  4. NinjaNic
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    NinjaNic Guru

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    Have you considered negotiating with them a price point reflective of the bogus rate? As in, why pay retail of $10 and deal with bogus when you can pay $5 and just not deal with it at all? Obviously that may be a tough sale, so split the difference.

    Another thing that is killing your results is that you are scheduling face to face appointments with people that engaged online. They don't, by and large, want to deal with someone face to face...they want to DIY/phone/internet. As someone who has overseen tens of thousands of internet leads, I can say that with certainty.

    Assuming you transitioned to phone sales, had a diligent follow up process automated via queue based calling and had a sample size with an extra 0 behind it and had that result, you can build a business around it. With authority, start quoting your leads over the phone, focus on non med as a first option, then pushing to a carrier ticket or esign.

    Problem is, you are basing this off of 33 leads. That is simply not enough. One mediocre publisher for QW could be differentiator.

    Feel free to PM me if you need additional guidance.
     
    NinjaNic, Jun 14, 2016
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  5. AIABROKER
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    AIABROKER Expert

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    I recently purchased leads from Quote Wizard. I totally agree with you that 70% were bogus. For some reason I had leads with the correct name and phone but the birthdate and address were incorrect. It's almost like they were fake. There were only two out of the 40 that said they had requested a quote. Those two have some unique situations that I'm working on.

    It's been a couple years since I last did internet leads so I thought I would give it a try again. I just couldn't believe how bad the quality was. I'm not sure if it's just QW or if I would get the same with other companies. Who would take the time to create bogus leads? Unless they're selling them, hmmm...

    Anyway, I was very disappointed with the results. And I know I hear you have to buy 100+ leads to really judge the quality but I could't go through that. Spending $1000 to maybe break even is not worth it.
     
  6. LGilmore
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    LGilmore Guru

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    Those were fake leads. Real people, real addresses, real phone numbers, emails and then not a single correct piece of information after that.

    The quote companies we buy from, buy those leads from other vendors. They don't generate them, they buy them and resell them to us.

    When that happens you can ask if all are from the same vendor and have them block the vendor.
     
    LGilmore, Jun 16, 2016
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  7. vic120
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    vic120 Guru

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    I tried them on medicare exclusive internet leads, I found my rep to be super helpful, I mean would not argue with me and returned everything I sent after a phone call,

    However the leads were horrible, I made money overall but it was a LOT of work, Not only were there too many reg returnable leads, There were many that were telemarketed that didn't even have computers and worse yet they were telemarketed for Auto and not looking for medicare, Many were recycled leads and you get the gem once in a while,

    I had to buy half priced weekend leads & promotional discounts to really make my money back, I would have lost money of my leads were bought at reg price

    Not worth the work the time or the stress
     
    vic120, Jun 16, 2016
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  8. fla2cali
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    fla2cali Super Genius

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    PICnic, I agree with everything you said. And I probably should've clarified. I only set those appointments, and I wasn't even looking to set appointments to go face to face. The only reason I did it, was that I wanted a better chance to close it, and they were close enough for me to drive to. So I went for it. Otherwise, I would try to close over the phone.

    Yes. as I admitted before.... I had a very small sample size.. And you really need more leads, and more time to really give it ago.

    Ultimately I'll do it again.. but you really have to committed.. I made money.

    ----------

    Update....

    That second appointment I made, I SOLD... and it's approved and issue paid. The other one is still in underwriting.

    So my Sale Acquisition cost is $75 dollars. lol..Not bad..

    The sale was for $86/month.. With this carrier I have a 105% contract. So just over a thousand dollars profit... I'll take that. lol...

    It's worth doing again, but the grind of calling just to find it's a bad lead and requesting credits, takes it's toll. Yes, I know that's the business.

    With face to face direct mail.. I felt my time was used more efficiently. Saw more people, had more conversations about Insurance...

    But again, had a small sample size, next time I'll commit to 100-200 leads.
     
    fla2cali, Jun 16, 2016
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  9. holdenc85
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    holdenc85 Expert

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    I just signed up with QW after a horrible experience with AWL. I made a point that I don't intend on dicking around with spending too much time asking for lead credits, and the rep acknowledged in addition to bad info, did not request and wrongs numbers, any leads that i was unable to contact would also merit a return.
     
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