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

[VolAgent]

My agents are surviving just fine. I have 22 agents. As a group we average 150k a month now and purchase about 30k in leads. My agents average about 5k ap for every $1000 in leads they purchase. Even a new agent on an 80% contract with 75% advance would still clear 2k after lead costs for every 1k they purchase in leads.

That's all on the average though some do better some do worse.

So... You average 150k month, and spend 30k a month on leads. But if you put your agents on a 50% contract it wouldn't generate another 30k for you to pay the lead bill???

Something does not compute.

 

[moonlightandmargaritas]

If I were brand new today I would not make it. I had a book to run, a manager that did ride alongs and did not even know you could buy leads.

I had a book, but when I started with Pru (with no insurance experience), my "manager" DISAPPEARED (literally) on my 4th day in the business. He had some serious personal problems.

Since failure was not an option, I found what I needed and figured it out on my own.

 

[houcoogster]

How are your agents surviving then? Assuming they are on 100% contracts, they are living on less than 50% commission.

Spot on!
The difference is.... they can tell their friends and people in the forum they make 100% commission. When the truth is they are closer to 0% commission when all said and done.

 

[GMDM100k]

So... You average 150k month, and spend 30k a month on leads. But if you put your agents on a 50% contract it wouldn't generate another 30k for you to pay the lead bill???

Something does not compute.

With a bigger spread I would have bigger charge backs! I also spend a ton of money on field training and getting new agents started. And I assume if I gave all my leads for free the agents would be taking more and not be working them a thoroughly . That 30k would probably turn to 50k!!! I know personally if I had free leads I would abuse the hell out of them.

Even if I could break even I would not do it. I would have such a low retention that I would have to double my recruiting efforts and it would cost me twice as much time and money. Not to mention all the agent debt I would get.

This business plan would put me and all my agents out of biz in the long run.

 

[jdeasy]

That's because you never learned LH math.

So... You average 150k month, and spend 30k a month on leads. But if you put your agents on a 50% contract it wouldn't generate another 30k for you to pay the lead bill???

Something does not compute.

 

[VolAgent]

That's because you never learned LH math.

I guess not. He definitely should clean up.

Now, I do agree with him. Free leads are fraught with problems. They wouldn't be worked nearly as hard is the main one. If he is having trouble with chargebacks, that is something he should look into. Free leads shouldn't change that other than the percentage he receives versus the agents.

 

[gordon112]

I guess not. He definitely should clean up.

Now, I do agree with him. Free leads are fraught with problems. They wouldn't be worked nearly as hard is the main one. If he is having trouble with chargebacks, that is something he should look into. Free leads shouldn't change that other than the percentage he receives versus the agents.

Chargebacks is something that LH agents always have to be concerned about. They are notoriously horrible compared to the competition.

 

[GMDM100k]

I guess not. He definitely should clean up.

Now, I do agree with him. Free leads are fraught with problems. They wouldn't be worked nearly as hard is the main one. If he is having trouble with chargebacks, that is something he should look into. Free leads shouldn't change that other than the percentage he receives versus the agents.

I clean up pretty nice when I get around to it . Or so I have been told!!

I think that my expenses would skyrocket if I offered free leads all across the board. I could not afford to do it as I said. I would loose all my agents and then it would be just me and my 30k in leads!! I couldnt afford it with my time or my money!
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That's because you never learned LH math.

Oh my math is sound! If I got an extra 50 points on 150k that would be 56k gross. Assuming my agency still only order 30k in leads now that they are free that would bring it down to 26k. If my agency maintains the 86% persistency it would cost me an extra 8k in chargbacks bringing my total down to 18k. It would cost me more than 18k in agent debt the first month I rolled out this new program.

The next month would be even worse because it would cost me money to replace the agents I lost the month before.

My math is correct. I think. I did it all in my head!

 

[AnonymousOne]

There is truly no such thing as a free lead. With every "free lead" program that I have seen you have to maintain a very high ppl. If you are over 100 ppl, then who cares about the lead cost if your on 50% contracts.


Any agent who wants to contract under me at 50%, if they guarantee production over 150 ppl, I'll give them 100 free leads a week and a $10 bill for every paid app and ill pay for a BMW lease that you can not drive to your FE appts.

 

[SirAlexFerguson]

I sent him a book just a couple weeks ago that I highly recommended. The title of that book is "Unbroken" about a WW2 pilot. One of the best books I have ever read.

Sorry to get off topic. I got that book as a gift a year ago. It's by Laura Hilldebrand, the author of Seabiscuit. I haven't read Unbroken but saw the man interviewed on CBS Sunday Morning. Really amazing story!