Realistic Expectations for FE Sales.

Discussion in 'Final Expense Forum' started by Jaymon, Jun 15, 2017.

  1. Jaymon
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    Jaymon Member

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    I would like start off thanking some of the regular participants...for some great info!

    I'm going back into the field after a 8 year lay-off. I sold in the Mortgage Protection Market for 7 years, running up to 20 appointments a week on average. With the mortgage cash in 2008, I went off in a different direction. I'm going to give it a shot in the FE marketplace...:err:

    Looking for a realistic goals and expectations on conversion rate, return rate as well as income goals.

    Marketing Plan:
    - Mailing 3,000 mailers a week.
    - Cost factor of 375.00 per thousand.
    - Contract levels are at 120% level on most carriers.
    - Experienced appointment setter and I will be "Door Knockin"
    - In the field 5 days a week.

    My filtered data:
    - Income 20K-50K
    - Ages 61-76
    - Women only (live in South Jersey/Philly area) so the data count is high.


    Thanks in advance!
     
    Last edited: Jun 15, 2017
  2. jdeasy
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    jdeasy Well-Known Member

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    Too many filters in my opinion but good luck. At least you have a plan. Most never get to that point.
     
  3. HoosierLife
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    HoosierLife Well-Known Member

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    I think you're returns will be bad with those demographics. The demos are great of course, but it will kill your returns.

    I would say, at best, you'll be paying $45 per lead.

    So if you're ok with that, I would drop an extra 1000 and roll with it.

    Or get hooked up with someone that offers set priced leads. You can get 115-120s everywhere with $30-$32 leads with similar demographics.
     
  4. OttoGraf
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    OttoGraf Well-Known Member

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    Sounds like you're at least willing to put in the hard work so that's the "hardest" part!!!

    Who are you connected with? Just wondering why they wouldn't have mentioned that your stringent filters are going to have you making appointments all across the lower 48.

    Even if you luck out and get the return w the filters you want the data is going to burn out pretty rapidly in my opinion.

    It'd be much easier to track your numbers down to the finest details on a fixed lead program. What I love about Equita Final Expense is that we have several different options for filters and can get the hard data as to what numbers you can really expect as opposed to trying to find a needle in a haystack.

    Even more, we have a whole department dedicated to getting you numbers on your sales ratios, persistency and on and on. So you know exactly how many leads to order to hit the numbers you want.

    And last but not least our $28 direct mail lead cost isn't increasing unlike some of the other well known direct mail lead programs out there!!!

    Whatever you decide good luck out there!
     
  5. Jaymon
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    Jaymon Member

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    What filters would you guy's recommend?

    My filtered data:
    - Income 20K-50K
    - Ages 61-76
    - Women only (live in South Jersey/Philly area) so the data count is high.

    Is the income filter at 20K to high?

    Ages 61-76 I figured leads in there 50's would be harder to get in front of and they my have less urgency for FE...I figure most of them will be working during the day, more difficult to contact with "door knock" or even calling. On ages 77-85 I was just figuring the cost would be to high...especially on ages 80-85.

    On the women only filter....don't women buy insurance FE more than men?

    Please keep in mind in the Philly/South Jersey area I'm covering has a data count around 100K with those filters, so I should have enough data.
     
  6. Jaymon
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    Jaymon Member

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    I have the mindset since I'm in a area with a large population, I can use better filters. I know it may bring the return rate down, but time has a value.

    So you recommend I mail an extra 1000 pcs?

    Thanks for your input.
     
  7. Baseball7
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    Baseball7 Well-Known Member

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    Just cause your in a large area(my area) doesn't there aren't 10+ other fulltime agents getting 20 leads a week from that same pool of data. Don't over think it.
     
  8. jdeasy
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    jdeasy Well-Known Member

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    The income filter would be where I would change. I don't want a filter on the bottom. I would guess 70% or so of my writes are for people making less than $1000/mo. And the higher income you go see the less likely they are FE people.

    But maybe that's your goal? If so then don't touch it.

    I would also guess that my writes are 50% males. But if you don't want to deal with males then don't change that either.

    That's a good price per 1000 for mailers. The set price leads may or may not be in your best interest. Only time and trail and error will tell you that.

    I definitely agree with you on the time has value notion. If I thought males and low income were time wasters I would dump them too.
     
  9. HoosierLife
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    HoosierLife Well-Known Member

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    Normally, mailhouses are dropping 0-40k/10-50kish and 50-85 both sexes. Even with those demos wide open, they might get a 1.2% return nationwide. Now maybe your area pulls better, I don't know.

    Every time you tighten up those demos, you're going to lower your return %. And you have 3 huge demo changes.

    Now I would love those demos, other than the income one. I want to run into the poor. That's our people!

    I remember back in the day I ran a card from Settlers. 3000 pieces. It was beautiful, talked specifically about life insurance, similar age and income demos and even had check boxes where the prospect could choose how much life insurance they wanted.

    I didn't close any greater % than with the demos much more wide open and I only got a 0.06% return. 18 leads for 3000. If that happens to you, you will end up paying over $60 a lead.

    If you get similar, or worse results, your plan will not work out. You won't have enough leads to feed your setter and you will fail out in dramatic fashion.

    As I said, you could open up your demos a little and still pay $30-$32 a lead with a set priced IMO and get comparable comp. You could guarantee 30 leads a week at less money than 3 drops with no risk on your part.
     
  10. Jaymon
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    Jaymon Member

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    Thanks, guy's. I'll change the filters to on 3k a week mail drop.

    - income to 10K-40K
    - age 61-80
    - men and women

    You guy's think this is better? With these filters what do you think the return rate will be? Also what is a realistic target conversion rate on the leads? And what about the avg premium per case?
     

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