Weekend Lead Generation / Sales Testing . . .

[myinsurebiz]

I love the fact that you're thinking outside the box, but unfortunately you don't seem to want to take advice from anyone on the forum, I think you're just telling us what you're going to do.

Thanks - I hate boxes. I haven't seen any "advice" given?

Sadly there are so many flaws in what you're trying to do it's going to hurt you and the agents dramatically.

How so? Flaws? Hurt the Agents? Please explain? Thanks.

 

[myinsurebiz]

Yes. There's vendors that sell live transfer telemarketed leads for $20-30 each. You'd be way better off doing it that way. 50% Profit on reselling the leads & your cost per acquisition will be lower in your call center. Plus you don't have to worry about managing your lead gen team.

Send me a DM & I'll tell you where to go to get them.

Thanks - will do . . .

More than one lead type is generated per knock.

 

[myinsurebiz]

All these leads from housing projects?

Ha - we are testing the FE "Debit" product in the Low Income areas this weekend. They wouldn't need the other products. Maybe hook them up with SafeLink . . .

 

[myinsurebiz]

Every business owner is stubborn to a degree. I commend Tom for sticking to his convictions.

Would this be the setup I'd run? Absolutely not!

But what do I know? I sell for one carrier and literally throw away thousands of leads on a weekly basis.

You only have to get it right one time folks! It might take a couple dozen tries, but you only have to get it right once.

Show us all up Tom, I'd be happy for you!

Thanks Hakeem. We'll make money just on farming the leads to other services / products. This will give us the cash flow to fund the call center operation for FE.

p.s. - I like the AmAm setup - but, they don't let many use TS to market it.

 

[VolAgent]

Every business owner is stubborn to a degree. I commend Tom for sticking to his convictions.

Would this be the setup I'd run? Absolutely not!

But what do I know? I sell for one carrier and literally throw away thousands of leads on a weekly basis.

You only have to get it right one time folks! It might take a couple dozen tries, but you only have to get it right once.

Show us all up Tom, I'd be happy for you!

What is the Thomas Edison quote from National Treasure, "I didn't fail, I found 2,000 ways how not to make a light bulb; I only need to find one way to make it work."

 

[rousemark]

Work?

This is more me...

 

[chasejordan1]

1. As soon as an agent owes the carrier $500 or more they will bail. They will be in a (I have to pay the CB back before I can pay my own rent, gas, food, etc) and you will get the roll up. 2. Once an agent does really well and figures out he can bail and roll the business to a better carrier for more money you will lose him and charge backs will roll up. 3. You need to keep the ALL the commissions and pay them a wage and bonus, so if they bail you at least keep what stays on the books. (you will need it) 4. If they are using your script, your leads, your office etc, they are employees and as soon as they work a week with no pay because of charge backs you are open for a law suit, they are 100% employees. Sucks but it is true. 5. This is my basic breakdown of your profit, and based on real call center numbers, I am also being very conservative. For my example I am using these figures - Average premium $50 (this is high too for telesales), Average close rate 20% (haha lets hope so), Charge back rate 70%, Lead cost $15 (I believe this is very low and not a real number for the way you are obtaining the lead), Agent "commission" $150, Advance 6 months, So Gross commission to company - $345 minus CB $103 (you need to save this money for future CB's), minus lead cost to attain the 1 sale $75, Agent pay $150. So that leaves you a profit of $17. An agent will need 1.5 to 2 sales per day to live a normal life (how many leads will be needed to keep agent busy to make that amount and how many canvassers will that take?? Can you keep an agent busy with enough leads 6 hours minimum per day) This does not take into consideration your overhead, start up cost etc, also a 20% close rate would be off the chart, and a $15 per lead cost would be great too, but I think that is really low for the way you are obtaining the lead. Also I am curious when you and the other agent tested getting the lead how many "other" leads did you get, this will play into time spent at door and will also change the variables a bit.

 

[FinalExpenseDojo.com]

Thanks - will do . . .

More than one lead type is generated per knock.

I started a FE call center in November. I have my own ways of getting leads & will say first hand that unless you're doing MILLIONS in production like Northstar, it's not worth it to generate them on your own.

Most of my time is spent optimizing my lead campaigns instead of on the part of business that actually makes me money: selling insurance.

If I could do it over again I would either hire an employee to focus on lead gen or just buy leads from a vendor. That way I could focus 100% on sales.

 

[FinalExpenseDojo.com]

1. As soon as an agent owes the carrier $500 or more they will bail. They will be in a (I have to pay the CB back before I can pay my own rent, gas, food, etc) and you will get the roll up. 2. Once an agent does really well and figures out he can bail and roll the business to a better carrier for more money you will lose him and charge backs will roll up. 3. You need to keep the ALL the commissions and pay them a wage and bonus, so if they bail you at least keep what stays on the books. (you will need it) 4. If they are using your script, your leads, your office etc, they are employees and as soon as they work a week with no pay because of charge backs you are open for a law suit, they are 100% employees. Sucks but it is true. 5. This is my basic breakdown of your profit, and based on real call center numbers, I am also being very conservative. For my example I am using these figures - Average premium $50, Average close rate 20% (haha lets hope so), Charge back rate 70%, Lead cost $15 (I believe this is very low and not a real number for the way you are obtaining the lead), Agent "commission" $150, Advance 6 months, So Gross commission to company - $345 minus CB $103 (you need to save this money for future CB's), minus lead cost to attain the 1 sale $75, Agent pay $150. So that leaves you a profit of $17. An agent will need 1.5 to 2 sales per day to live a normal life (how many leads will be needed to keep agent busy to make that amount and how many canvassers will that take?? Can you keep an agent busy with enough leads 6 hours minimum per day) This does not take into consideration your overhead, start up cost etc, also a 20% close rate would be off the chart, and a $15 per lead cost would be great too, but I think that is really low for the way you are obtaining the lead. Also I am curious when you and the other agent tested getting the lead how many "other" leads did you get, this will play into time spent at door and will also change the variables a bit.

You are right. The agents that don't make it are the ones that will kill profits. I take a $800 loss on average for every agent that doesn't make it in my call center. That's why call centers pay very very low comp. That's the only way to make a profit with all the expenses!

 

[GreenSky]

The cool thing is that Tom always lets us know how to fail. Every time.

The only thing he won't do is actually sell insurance for himself. Some of us make very good livings doing this. One day maybe he'll learn to count on himself rather than others.

Rick