Who Buys Leads?

working leads is one option..its ADVERTISING...so just like YP, DMAIL, etc., you are going to have SOME success...every lead isn't going to be gold....when working with company's that generate their leads through affiliates, you should be paying LESS to be able to buy MORE so you can justify that return on investment. There are company's that charge 10-20 bucks for leads that are generated naturally. One issue that i have doing this is that we don't receive that many leads. but realistically, how many people could possibly be filling out this application? Think about that...if you're getting leads from 10-15 zip codes and the total population is somewhere around 100,000 and the company you work with can send you 1000 leads in a month....is it possible that one percent of those people went to THEIR website to fill out an application? or are these leads recycled and re-sold or are they offered incentives to fill out the application in which case they aren't really requesting a quote...the best thing you can do is to go and understand internet marketing. it will help you to better understand where your leads are actually coming from.
 
The reason I ask is because I think they are a waste of money. I'm assuming you used to be able to run an agency off leads but now I'd be surprised if anyone is making any real money off of them (besides the lead companies).

I can see how prospecting can be difficult but common at $5-$15 / lead and 10% closing as the average I don't see how anyone can justify this as a source of income. I know I couldn't.

My point is why don't people invest their time and money on things that will generate them leads instead of continuously paying for them.

Maybe it's because a lot of people really don't know what the best alternative is?

I sell live transfer leads now and, at least in the health insurance area, closing rates are around 20% to 25% (as compared to the relative "norm" of 15% to 20%). I think the higher closing percentage may be in part because of the current economic climate ( many people who previously had insurance with an employer no longer do because they were let go).

I come from an extensive background in website marketing and advertising. Marketing on the Internet with your website is a very popular marketing/advertising choice these days, but you're not going to get any real results for cheap. More like it will take the average business person quite a lot of time and money to really make a presence on the Internet. Marketing on the Internet is a hard nut to crack, but many people still spend their time and money trying to get web based results. What they usually get is nominal.

If you don't think there's business in live transfer leads, I can honestly tell you that many big insurance companies are using them quite well. This is probably because the focus is on talking to more prospects per day as compared to spending a lot of time prospecting to talk to a few.
 
Wait. 20 posts to 1 post.

R...I don't know you but my guess is a mod deleted your posts for spam. Perhaps you should just post to contribute instead of selling your product.

There are plenty of folks here who don't try to sell their product, but maybe that's why they're successful at selling it!
 
Its not that I doubt that they cant be profitable but there are just way better ways to market. I mean for the price of a couple months worth of leads you could open a website and generate your own. I mean you can easily spend thousands on leads a month. Why not just take the money and invest in something that will generate leads for you.

Yes they can. But a website can take 6 months or more to really blossom with SEO and get the traffic you need to pay bills.

I'm new to this, but I have built a site. I have another website for my other job which is non insurance related and it took months to rank for keywords. Insurance is much more competitive than the other site. It takes time with a website get organic traffic. PPC is more expensive than buying leads, so you have to develop the site with SEO for months before you see a draw on that lead source.

DM mail and leads from the internet and TM leads are good to supplement your sales funnel.

If you spend a $1000 on leads weekly and get $5000 in commission, your making a good return. You can live off of $4000 a week I assure you. :D
 
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I know agents making $10-30k mo plus off purchased internet leads, they def do still work, but then the agent also has to work

This is one of the best statements on this forum because its simple and honest. Leads work but the problem is a lot of agents dont. We have generated over 182,000 quote requests in the last 12 months. None of it matters if the agent wont work and put the time in.
 
I purchased 1000 turnkey leads that were to be sent to aging-in seniors.
I received 3 calls
1- notified me that the intended person has been deceased for 30 plus years.
2- A Korean war vet. obviously not aging in.
3- 35 years old and not thinking about Medicare.
When you spend over $700 for leads you would hope for something better.
 
This is one of the best statements on this forum because its simple and honest. Leads work but the problem is a lot of agents dont. We have generated over 182,000 quote requests in the last 12 months. None of it matters if the agent wont work and put the time in.

100% Agree! Plus ++++ on your post.
There is no Free Lunch with any marketing program.
 
I'm curious as to who actually pays for leads (netquote, insureme, hometown, ect)? If you do, I would like to know why. Is it price, closing ratio, ease of sale, can't prospect? please share.
I'm more interested in who dosn't have a marketing budget and is succesfull int this business or any other.
 
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