What's A Truly Exclusive Small Group Health Lead Worth?

[somarco]

Personally, I would not pay anything for a group health lead. If I did buy one, I wouldn't pay more than for an individual health lead.

Business owners looking for group coverage either don't have a plan now and are thinking about starting one.

If they have a plan now, they are probably going to look at multiple proposals from multiple agents, including their current agent (if they can find him).

If they don't have a plan, by the time you show them numbers and tell them how much they will have to pay towards each employee's coverage just to meet the minimum participation standards they will no longer be a prospect.

If they have a plan and are serious, the odds of closing the sale in the next 90 days are 1 in 10. If you get lucky you can cut that in half.

If you are sharp enough to get an AOR letter you can improve your odds even more.

If you do close a 5 life group you will not see the first commission check for at least 60 days. That means you don't get paid for roughly 5 months after you first open the file.

If you are lucky, you will get paid a percentage of the premium. If you are not, you will be paid a capitated fee something on the order of $15 per employee or about $75 per month on that 5 life group.

So tell me. If you were an agent and knew this, how much would you pay for an "exclusive" group health lead?

 

[Josh]

Personally, I would not pay anything for a group health lead. If I did buy one, I wouldn't pay more than for an individual health lead.

If they have a plan now, they are probably going to look at multiple proposals from multiple agents, including their current agent (if they can find him).

If they have a plan and are serious, the odds of closing the sale in the next 90 days are 1 in 10. If you get lucky you can cut that in half.

My admittedly limited experience in this industry has been quite different. The leads we are generating are only shopping against what they currently have and usually no other agent is in the picture.

That all being said, I appreciate you answering the question. To answer yours, about $150.

 

[somarco]

I doubt you will find anyone willing to pay anywhere close to $150 for those leads. If I were buying group leads, I might go $20, maybe $25 tops.

But I am not.

I would be interested to read feedback from ABC and a few others that regularly work the group market.

 

[GreenSky]

I've never even thought of this "deal," but I'd be willing to pay close to cost on a lead with a bonus up to set amount upon writing a policy with a minimum monthly commission.

Puts the lead company into a partnership with the agent. So the agent isn't the only one at risk.

Clearly a better agent can close more but a crappy lead cannot be sold not matter who is the agent.

Becomes a partnership. Good leads plus good agent means money for both.

Rick

 

[Josh]

I would be interested to read feedback from ABC and a few others that regularly work the group market.

Hopefully they'll chime in then. It's entirely possible that selling them is a waste of time and I'm better of just having my agents work them.
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I've never even thought of this "deal," but I'd be willing to pay close to cost on a lead with a bonus up to set amount upon writing a policy with a minimum monthly commission.

Puts the lead company into a partnership with the agent. So the agent isn't the only one at risk.

Clearly a better agent can close more but a crappy lead cannot be sold not matter who is the agent.

Becomes a partnership. Good leads plus good agent means money for both.

Rick

Those deals tend to make the most sense. It'd hard to find a good partnership like that. If anyone's interested in discussing that, I'm totally up for it. Specifically with health at this point.
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I doubt you will find anyone willing to pay anywhere close to $150 for those leads. If I were buying group leads, I might go $20, maybe $25 tops.

It's entirely possible that you're right. I think that this would be a good example of you get what you pay for. I could sell junk group leads for $20/each and make money at it, but there is no guarantee they'll do much more than ask what company or companies you represent and then be done with you. My thinking was that if the lead quality was guaranteed to be high then an agent would potentially be willing to pay for that quality, but based on the feedback so far I'm under the impression that at least most agents aren't interested in paying more than $20/lead regardless of the quality. Is that the gist of it?

 

[somarco]

Every lead company seems to think they have a better quality lead than the next one.

Truth is, I have yet to see leads worth anywhere near the asking price. I have paid as little as $1 for leads and as high as $40.

I can tell you a $1 lead is probably worth what I paid but the $40 lead was not even close.

No one can qualify a lead the way I can. I have worked the phones before, generating my own leads as well as generating leads for others. When I spent time in a phone room generating leads the reps told me mine were better than any others they had. I could crank out 2 - 3 leads an hour, all dialing by hand. Most nights I would hit my quota in less than 3 hours while others would struggle through 5 hours and never hit their stride. I came in late, left early.

I seriously doubt you have anyone who could match that kind of output and deliver quality.

But to address your closing question, I doubt anyone is willing to pay more than $20 for a lead unless you truly have a better mousetrap and can prove it.

 

[Josh]

Every lead company seems to think they have a better quality lead than the next one.

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I seriously doubt you have anyone who could match that kind of output and deliver quality.

But to address your closing question, I doubt anyone is willing to pay more than $20 for a lead unless you truly have a better mousetrap and can prove it.

About a year ago started generating my own leads in-house for Medicare and FE and had much better luck than any lead company I've worked with because I'm an agent generating leads, not a lead company trying to sell to agents. I don't necessarily have a better mousetrap, but what I do have is a solid system that can generate quality over quantity. I'm content just keeping everything in-house, but if there were agents willing to pay top dollar for a top quality lead, then it could give me more marketing capital which is really what I'm interested in. It's entirely possible that no one is interested in paying top dollar for a top quality lead. I can easily prove the quality, but my suspicion at this point is that no one is interested in paying $200/lead regardless of the quality.

 

[somarco]

no one is interested in paying $200/lead regardless of the quality

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I would not argue that point.

 

[Labman]

I buy group leads and pay about $15-20. Most of them have been pretty legit but being new in the business I've only closed one or two. In my experience you are definately going against an incumbent agent whom most seem to be happy with. I'd would not pay more than $20 unless the lead happened to be one where the business owner was mad with the agent and their products, which I doubt happens too often.

 

[Josh]

I buy group leads and pay about $15-20. Most of them have been pretty legit but being new in the business I've only closed one or two. In my experience you are definately going against an incumbent agent whom most seem to be happy with. I'd would not pay more than $20 unless the lead happened to be one where the business owner was mad with the agent and their products, which I doubt happens too often.

For the sake of conversation let's say that they didn't have a current agent they were happy with, $25 then? Bottom line is that no agent is willing to pay more than $20 for a group lead regardless of the quality?