Spam Colo Knocked Offline. Did your lead volume drop?

[MikeLevy]

On November 11th, 2008 the source of almost two thirds of the spam on the internet was taken offline. A single co-location center, McColo, was the source of the computers relaying the spam and their upstream providers voluntarily gave them the axe. Incidentally, many lead providers suddenly lost an incredible amount of volume. If you noticed that your lead provider suddenly and inexplicably started sending you less leads just after this date, you may want to ask them how they generate there leads.

For general information on what happened you can search Google for McColo and many news articles come up. This is one of them:

Spam sees big nosedive as rogue ISP McColo knocked offline

 

[Crabcake Johnny]

I've never understood why lead providers are remotely concerned with volume.

Volume is what it is and quality cannot be created. "X" number of people are naturally searching for health insurance on any given day. It is what it is.

I remember working for car dealers who would do stupid stuff to boost lot traffic like mail out 5,000 keys - 1 started the car.

What did we get? 1,000 people on the lot with zero intention of buying who chewed up our time. We were busy...but we weren't selling.

As for leads - say in Maryland there's 100 leads a day up for grab - 100% search driven - people actually looking for quotes.

Fine - once 100 are sold that's it. Too many agents? You jack the price. So if you're sold out in MD at $8 a lead then they become $10 per lead. If they're sold out at $10 then it's $12.

In the end the lead companies end up with:

*Agents who can actually close
*Agents who are not broke
*Agents who stick with the source forever

What actually happens? There are more agents then natural leads so lead vendors get creative or farm it out to affiliates who get creative. What happens?

*Lead quality is watered down
*Solid agents with money leave
*Lead vendors spend time having to constantly recruit new agents
*New agents are broke and can't close so they quit
*Rinse and repeat

Don't you guys get it? I don't care if a lead is $5, $6, or $10. I want to call people who actually want quotes.

 

[somarco]

What happens?

*Lead quality is watered down
*Solid agents with money leave
*Lead vendors spend time having to constantly recruit new agents
*New agents are broke and can't close so they quit
*Rinse and repeat

Don't you guys get it? I don't care if a lead is $5, $6, or $10. I want to call people who actually want quotes.

Mega-ditto

 

[MikeLevy]

I've never understood why lead providers are remotely concerned with volume.

Volume is what it is and quality cannot be created. "X" number of people are naturally searching for health insurance on any given day. It is what it is.

I remember working for car dealers who would do stupid stuff to boost lot traffic like mail out 5,000 keys - 1 started the car.

What did we get? 1,000 people on the lot with zero intention of buying who chewed up our time. We were busy...but we weren't selling.

As for leads - say in Maryland there's 100 leads a day up for grab - 100% search driven - people actually looking for quotes.

Fine - once 100 are sold that's it. Too many agents? You jack the price. So if you're sold out in MD at $8 a lead then they become $10 per lead. If they're sold out at $10 then it's $12.

In the end the lead companies end up with:

*Agents who can actually close
*Agents who are not broke
*Agents who stick with the source forever

What actually happens? There are more agents then natural leads so lead vendors get creative or farm it out to affiliates who get creative. What happens?

*Lead quality is watered down
*Solid agents with money leave
*Lead vendors spend time having to constantly recruit new agents
*New agents are broke and can't close so they quit
*Rinse and repeat

Don't you guys get it? I don't care if a lead is $5, $6, or $10. I want to call people who actually want quotes.

I am in complete agreement. Now I just have to figure out a way to get all the other lead generators to agree as well.

Unfortunately, lead providers make money by selling leads and therefore we live and die by volume. The temptation to create demand with spam is great in the face of the instant dollars it can produce. Affiliate programs compound this problem dramatically as affiliates have even less connection to the end customer. Further, affiliates are a great tool for plausable deniability on the part of the lead company. "Don't ask Don't tell" is too often the norm in the affiliate-lead generator relationship.

Real demand cannot be created artificially. There are only so many people shopping for insurance at any given time in any given area as you state. That is a truth that is self evident. Unfortunately, many agents figure that out too late.

When McColo went dark we had a flood of new orders at MostChoice as agents saw the lead volume from their other providers plummet. We've never used spam and never had an affiliate program so we were completely unaffected. We knew something was up with some lead companies volume even before the story broke but couldn't put our finger on what had happened. Apparently there were two other colo companies that were knocked off before McColo. Some of our clients were even asking us if "xxxx" lead company was out of business because they hadn't gotten a lead from them in days. It was odd. We had never heard that before.

What this means to you as an agent is that whenever you see something odd with your lead volume, you need to be asking questions of your lead provider as to what caused it. It may be something perfectly normal and explainable. If they are generating leads search engine only you may see some fluctuations as there are certain times of year that people aren't focused on buying insurance, especially around the holidays and the middle of the summer. The same holds true for Fridays and Weekends. Not too many people are focused on shopping for insurance on Friday nights, etc.

Anyway, I just thought I would point this McColo situation out before the story fades away. I'm sure the spammers will find new servers somewhere else soon. Hopefully, the upstream providers will take action again and take them out proactively. It will only be when we act proactively that the problem is solved.

 

[MikeLevy]

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I noticed below my signature an advertisement for buyinginsuranceleads.com has appeared. I believe this is a rotating add that only appears when you are not logged in, so you may or may not see it. I didn't include that advertisement in my post so I guess it is just something that goes in automatically. Anyway, I clicked on that advertisement and it was an advertisement for Netquote or a Netquote affiliate. Out of curiosity, what does this statement mean to you, the agent?


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"Our data shows that 6 out of 10 of our consumers will purchase insurance through an agent with NetQuote's Agent Network."​

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Michael A Levy
Chairman and Founder
MostChoice.com, Inc.
http://www.MostChoice.com

 

[CHUMPS FROM OXFORD]

If true, NetQuote is a lot better than I thought.

One thing about NQ...never a dull moment with them. Some of the worst leads known to man...and some of the best ("Hi...I'm glad you called. Let's talk.")

 

[Crabcake Johnny]

[FONT=arial,helvetica,sans-serif]

I noticed below my signature an advertisement for buyinginsuranceleads.com has appeared. I believe this is a rotating add that only appears when you are not logged in, so you may or may not see it. I didn't include that advertisement in my post so I guess it is just something that goes in automatically. Anyway, I clicked on that advertisement and it was an advertisement for Netquote or a Netquote affiliate. Out of curiosity, what does this statement mean to you, the agent?


​

[/FONT][FONT=arial,helvetica,sans-serif]

"Our data shows that 6 out of 10 of our consumers will purchase insurance through an agent with NetQuote's Agent Network."​

[/FONT]

Michael A Levy
Chairman and Founder
MostChoice.com, Inc.
http://www.MostChoice.com

Mike - I think if you worry about Netquote less and MostChoice more your business will do better.

I could care less what other association like the NAHU are doing. I'm only concerned with that I'm doing.

 

[GreenSky]

Isn't is amazing that Mike Levy only shows up here when he get a mega fine for unethical business activities. Being "helpful" now will not make agents here believe he suddenly gained ethics.

My personal recommendation based upon my experience is I would rather cold call into a nursing home for IFP than contract with his company.

Rick

 

[MikeLevy]

If true, NetQuote is a lot better than I thought.

One thing about NQ...never a dull moment with them. Some of the worst leads known to man...and some of the best ("Hi...I'm glad you called. Let's talk.")

Do you think that it is possible that any lead service could deliver leads that would close 60% of the time, on average?

 

[Crabcake Johnny]

does it matter