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

[LGilmore]

Anytime, someone uses the word EXCLUSIVE in an attempt to promote their lead service... Well, after I'm done laughing I move on. NO such animal out there.

The responses you've been getting means your trying to sell to an experienced group of agents. Everybody's been around the block.

 

[somarco]

MSP, in your year on the forum you apparently haven't been paying attention when it comes to leads.

 

[scagnt83]

I wouldnt consider MPS a spammer... maybe a self promoter at times... but who in this industry isnt at times?

And he has given good advice many times on this forum from what I have seen.

In his defense a few posts did ask questions about his process and quality, so why not answer them? I asked a question myself and received an answer, plain and simple.

If he is producing quality in house leads and has the ability to extend the service to agents that are not in house, whats wrong with testing the waters in a forum that has many experienced agents?...... its what I would probably do...

Some agents are more comfortable with buying leads than prospecting on their own. Im not arguing the good or bad points of this, just stating a fact.
Plus cold prospecting takes a good bit of time. If CC is your business model & you can outsource it in an efficient and effective manner, that time is much better spent in front of clients, and you could build a profitable business model from it.


I have messed around with bought leads in the past. The quality was always variable. I have ultimately been profitable from bought leads, but it wasnt always easy to do.

I have made much more money from networking and "warm calling" people I know throughout the community. Most everybody I meet and have a conversation with I ask them what they do, usually after responding they ask me the same thing. This sets up the warm call.

 

[moonlightandmargaritas]

"Is $200 my actual cost? It's close. At that price there really isn't much of a profit margin in it, but if it's a good area there could be enough profit in it to make it worthwhile."

What? These things gold-plated or something? What is it that makes your "cost" so astronomical? (PS-I'm a partner in a call center business, and I've been in the insurance business for 19 years, so it's gonna be real tough to BS me).


"What a lead is valued at, is totally different than what people would be willing to pay for this super qualified lead."

I already tried explaining that to him. No dice it looks like...

 

[Josh]

"Is $200 my actual cost? It's close. At that price there really isn't much of a profit margin in it, but if it's a good area there could be enough profit in it to make it worthwhile."

What? These things gold-plated or something? What is it that makes your "cost" so astronomical? (PS-I'm a partner in a call center business, and I've been in the insurance business for 19 years, so it's gonna be real tough to BS me).

Partner in a call center and in the biz for 19 years. Please tell us all how cheap and easy it is to cc for group health leads. At the prices we are talking about the lead would be guaranteed to give a census and discuss a quote with an open mind and no other agents working it. We're talking about an extremely qualified lead, not some bs internet lead.
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Anytime, someone uses the word EXCLUSIVE in an attempt to promote their lead service... Well, after I'm done laughing I move on. NO such animal out there.

The responses you've been getting means your trying to sell to an experienced group of agents. Everybody's been around the block.

Let me try to make this as clear as possible: I started this thread to find out what the value was, not to try to sell them.

You're completely wrong about an exclusive lead not existing. We telemarket small businesses and find businesses that either don't like what they have or would like to save money. If they aren't interested then we hang up and call another business. It's possible that someone can do this less expensively than I can, but not if they are outsourcing it. These are not internet leads so its possible to get more leads without waiting for people to go online and look for insurance.

Again, I did NOT start this thread to sell leads, all I wanted to know was what an agent would be willing to pay for one of the kind and quality I described.

 

[moonlightandmargaritas]

Partner in a call center and in the biz for 19 years. Please tell us all how cheap and easy it is to cc for group health leads.

Never said it was "cheap" or "easy", but the cost to generate a lead such as you describe would be far closer to $38-$40 than $200.

 

[Josh]

Never said it was "cheap" or "easy", but the cost to generate a lead such as you describe would be far closer to $38-$40 than $200.

I think $40 would be cheap, but that's just one man's opinion.

 

[somarco]

If you can get $2k in first year alone, a lead should in theory be worth $500?

I swore off the thread, now just like Silvio's impression of Al Pacino, I am getting sucked back in.

A 4:1 ROI isn't worth my time or any other good agent. If everyone of your $200 leads was a guaranteed sale, and one really can generate $2,000 in comp over the first 12 months, then it's a maybe.

But I doubt anyone can close all your $200 leads. At best you might get 1 out of 3 and that is a bit of a push, even for leads that are gold plated. So that put's us back in the $600 range as a cost of acquisition and less than a 4:1 ROI.

 

[Josh]

A 4:1 ROI isn't worth my time or any other good agent. If everyone of your $200 least was a guaranteed sale, and one really can generate $2,000 in comp over the first 12 months, then it's a maybe.

But I doubt anyone can close all your $200 leads. At best you might get 1 out of 3 and that is a bit of a push, even for leads that are gold plated. So that put's us back in the $600 range as a cost of acquisition and less than a 4:1 ROI.

Then clearly don't see the value in a high quality, exclusive and pre-qualified lead, you can leave it at that if you'd like.

They will not close at 100%. I also didn't say I would sell them @$200, just taking the pulse of the community to see what they were worth. To M&M's point, clearly what an agent would pay them for them and what they're worth are two very different numbers. A 4:1 ratio is still a 400% return on investment while only talking to people who are interested in discussing their health insurance and willing to give up information before an agent even talks to them. I'd think they'd be worth more than what this thread has valued them at, but in all honesty that is the same group of individuals who seem to usually pay for internet leads they know are difficult to work. I don't fault anyone for thinking that an expensive lead might be a bad investment, but the notion that a lead could be worth $200 is not something I naively believed would be so universally dismissed. Thanks for the feedback!

 

[somarco]

When I bought leads my ROI was generally in the 8:1 range and some times was in the 10 - 12:1 range. If I didn't get a minimum 5:1 return in short order that source was flushed.

4:1 ROI is something a rookie might experience, but after they have been around a few months it better start to improve or they won't be around long.

A $200 lead better be a lay down and come with a BJ.