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What criteria do the vets use to determine lead quality?

1) How the lead is generated?
2) Percentage of bad leads (e.g., bad numbers, e-mails, etc.)
3) Ability to get credit or refund for bad leads.
4) Ability to turn leads on and off.
5) Lead stats (type of coverage, pre-existing conditions, timeframe for new policy, number, current carrier, premium, yadda yadda yadda).

Am I missing anything......

-J.R.

Average commission per lead. This really speaks to everything. If I get 50 leads at $2 a lead ($100 total cost), and make $500, my average commission per lead is $10 ($500/50 leads). If I get 2 leads, and they cost me $50 each, and I close $500 in business, my average commission per lead is $250.

In both cases, my ROI is $5 per $1 invested.
In the second case, my time invested is much, much, much less, making it a better overall deal.

Bottom line, cheap leads are good for training, but not much else. Expensive leads will send your ROI numbers in the toilet quickly. It's difficult, but if you track your commission per lead source, you'll know quickly which ones are good and which ones aren't. In many cases, you'll be surprised, I know I am from time to time. It also helps to know when it's time to drop a lead source.

Lead sources, especially internet lead sources, change performance frequently, depending on a LOT of factors. Some are in house, some are external, such as which other agents get the lead.

QuotesAuction used to be a great lead source for me. I dropped them at the beginning of the year, since the only way to make money was to pay for filters that drove the ROI into the tank, which meant I didn't make any money.

So to add to your list, besides ROI, I'd add how 'customized' can your lead be? If you have to add a filter to filter out uninsurables, then your usually wasting your money.

Dan
 
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