Securus Raises Platinum Lead Prices By $4.00 (Nearly 20 Percent)

[JimmyUt]

This is the risk you take when hooked up with any "marketing group". Maybe the subsidized leads aren't so "cheap" after all?

One good thing about EFES is that when they mail for you, there is a code on the lead that shows it is yours, as well as they lock your territory.

 

[stankup1]

Like to talk to a company that guarnteed 1.7 percent return on DM Thanks!

 

[houcoogster]

At $25 per lead that's going to be real unattractive if the contracts are less than 100%

Do they lower the cost based on production like Equita does?

Yep, Lead cost = 1st year comp.

After you account for chargebacks, non-takes, declines and out of the ball park rate ups which = a nontake and .37 cents a mile

A guy would be better off going direct or as close as possible getting a list and cold knocking and or calling. The lead cost has made this virtually impossible to succeed except for the truly "exceptional" agent. And no... that is not one out of ten........... I'm talking 1 out of hundreds.

However, if you live and or market in "Candy Land" and getting a 2.9% return on dm this does not apply.

Agents and Marketers share a large part of the blame for this by bidding up the lead price to these lofty levels.

 

[GMDM100k]

Even a 2.9% return will go down eventually. When I first started doing mailings I was getting huge returns. Slowly they started to decline after I pounded the area for a few years.

It would be hard for a company to guarantee a set return rate for long. As more and more areas get saturated by all these agencies return rates will fall.

This could be a reason why these agencies offering free leads will be getting more popular over time.

 

[VolAgent]

Even a 2.9% return will go down eventually. When I first started doing mailings I was getting huge returns. Slowly they started to decline after I pounded the area for a few years.

It would be hard for a company to guarantee a set return rate for long. As more and more areas get saturated by all these agencies return rates will fall.

This could be a reason why these agencies offering free leads will be getting more popular over time.

TANSTAAFL. Those free leads may be some of the most expensive leads you ever buy.

 

[rousemark]

Even a 2.9% return will go down eventually. When I first started doing mailings I was getting huge returns. Slowly they started to decline after I pounded the area for a few years.

It would be hard for a company to guarantee a set return rate for long. As more and more areas get saturated by all these agencies return rates will fall.

This could be a reason why these agencies offering free leads will be getting more popular over time.

But the leads aren't "free".. There are only so many ways to split a dollar.. If the agency gives free leads, then they have to cut comp so the agent is still paying for the leads.. In the end, it all boils down to "Does the agency administration of the lead program save enough to justify the educed commission rate?"

 

[gordon112]

Even a 2.9% return will go down eventually. When I first started doing mailings I was getting huge returns. Slowly they started to decline after I pounded the area for a few years.

It would be hard for a company to guarantee a set return rate for long. As more and more areas get saturated by all these agencies return rates will fall.

This could be a reason why these agencies offering free leads will be getting more popular over time.

The costs will get passed to the agent via very low commissions.

 

[jdeasy]

They are popular now. Just design a program right now with free leads and 50% contracts. You better hire someone to answer the phone.

Even a 2.9% return will go down eventually. When I first started doing mailings I was getting huge returns. Slowly they started to decline after I pounded the area for a few years.

It would be hard for a company to guarantee a set return rate for long. As more and more areas get saturated by all these agencies return rates will fall.

This could be a reason why these agencies offering free leads will be getting more popular over time.

 

[GMDM100k]

But the leads aren't "free".. There are only so many ways to split a dollar.. If the agency gives free leads, then they have to cut comp so the agent is still paying for the leads.. In the end, it all boils down to "Does the agency administration of the lead program save enough to justify the educed commission rate?"

I agree 100%. This increase in lead cost will make it harder for a new agent not to go in the red at the beginning though. If a new agent has to fork out $500 for their first few leads I don't think they would be able to make enough sales to clear that cost. With a free lead program it would appear to a new agent that they are making all profit.

I'm not a fan of free leads with lowed comp but I think that I will be getting more and more attractive to new agents in the future.

 

[jdeasy]

I agree 100%. This increase in lead cost will make it harder for a new agent not to go in the red at the beginning though. If a new agent has to fork out $500 for their first few leads I don't think they would be able to make enough sales to clear that cost. With a free lead program it would appear to a new agent that they are making all profit.

I'm not a fan of free leads with lowed comp but I think that I will be getting more and more attractive to new agents in the future.

They attract the agents now that a program like that is geared to attrack. That will continue.

The agents get what they pay for in "free leads" and the IMO's get the type of agents that they want. Those programs are not geared for, nor do they want, professional agents.