What Would You Pay for a Lead?

[Wtprice]

People do switch for emotional reasons, however, you're looking for people that are ready to switch now! That's really your job, not the telemarketers. As the outline, if they're willing to speak with an agent, that's a sign that they have interest, to me.

Here's the difference to me, and why I can see that 30 dollars isn't unreasonable to purchase a lead of that level:

Mailers cost anywhere from 350-480 per 1000, right?

Lets say you get an awesome return of 2% at 350. Your "leads" are $17.5 each. These aren't health qualified, you have no idea what they are paying, they have no idea what you're offering. You just know they're interested. Lets go ahead and filter out half now that aren't going to remember about filling out anything, don't medically qualify or aren't competitive. That's 35 dollars per lead that you still have to make appointments with and get to sign up. Lets say you sign up 5 out of the 1000 mailers.

On the flip, you're paying 30 dollars for fully telemarketed leads. They know why you're calling. You know how much they're paying and how much your policy costs. They're health qualified and want to speak with an agent. 10 hard qualified leads, 300 dollars. Personally, I think you'd find your closing ratio's higher, but that's just me.

This is all hypothetical, as I don't buy leads. I'm just interested in what people think is the value based on the information provided.

Not everyone jumps at the cheapest deal on the block - ie cheap conotation.

From what I've gathered, people switch because of emotional reasons -- they're tired of rate increases and are afraid of not being able to afford it.

 

[Rearden]

No, I agree 100%. Telemarketers are best used for establishing a VERY basic interest level.

However -- if you've ever purchased telemarketed leads before -- their goal, if on commission-basis, is to aggressively get the "lead" to complete the survey/qualification questions to get paid.

That's why a lot of people think telemarketed "leads" suck. Some people just don't know how to say no and hang up the phone.

I've bought 30 telemarketed FE leads recently that are qualified on basic health and have a checking account. About 70% of them when I called back said they were all set. I even asked them, "Why did you even bother to answer the questions if you weren't interested to begin with?" And they said, "You called me!"

Just like direct mail generic leads, as long as you understand 70% of your leads are garbage, telemarketed "leads" are OK.

What I would really prefer to do is pay a COMPETENT telemarketer a fixed dollar-amount ($15-$20 an hour) and have her call 10-20 hours a week. The script would be straightforward and built on qualifying based on interest versus running rough-shod.

I'd be happy with 3 solid leads with a need every 10 hours at $20 per hour than 30 Casper Milktoast leads in the same 10 hours using an overly-aggressive script.

People do switch for emotional reasons, however, you're looking for people that are ready to switch now! That's really your job, not the telemarketers. As the outline, if they're willing to speak with an agent, that's a sign that they have interest, to me.

Here's the difference to me, and why I can see that 30 dollars isn't unreasonable to purchase a lead of that level:

Mailers cost anywhere from 350-480 per 1000, right?

Lets say you get an awesome return of 2% at 350. Your "leads" are $17.5 each. These aren't health qualified, you have no idea what they are paying, they have no idea what you're offering. You just know they're interested. Lets go ahead and filter out half now that aren't going to remember about filling out anything, don't medically qualify or aren't competitive. That's 35 dollars per lead that you still have to make appointments with and get to sign up. Lets say you sign up 5 out of the 1000 mailers.

On the flip, you're paying 30 dollars for fully telemarketed leads. They know why you're calling. You know how much they're paying and how much your policy costs. They're health qualified and want to speak with an agent. 10 hard qualified leads, 300 dollars. Personally, I think you'd find your closing ratio's higher, but that's just me.

This is all hypothetical, as I don't buy leads. I'm just interested in what people think is the value based on the information provided.

 

[moonlightandmargaritas]

My question (because I don't buy leads.) is how much you would pay for the following information:

Don't care what the price is. I DO care about my ROI. If it's reasonable to expect to meet my minimum standard of a 5 to 1 ROI, the price is irrelevant to me...it's a question of "cost vs. "investment".

 

[Wtprice]

Don't care what the price is. I DO care about my ROI. If it's reasonable to expect to meet my minimum standard of a 5 to 1 ROI, the price is irrelevant to me...it's a question of "cost vs. "investment".

That's absolutely reasonable. ROI is probably the most important feature in any lead generation system. Obviously, no telemarketer or lead generation can tell you what your ROI is going to be, because there are multiple variables that are out of your control. However, they can improve their quality of leads to ensure that you have the best opportunity to sell as possible.

 

[TaxFreeIncome]

To be able to get a qualified lead with that information the price is irrelevant because you could expect to close a high ratio. But the question is, does that kind of lead really exist?