Quote Wizard Review 2016 Life Insurance Leads

Jun 7, 2016

  1. fla2cali

    fla2cali Super Genius

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    Thought I would post this here too.......

    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..

    • 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.
  2. pcbinsurance

    pcbinsurance Guru

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    That's my two cents.
    Don't short yourself, that information was worth at least a nickel.