Why I Don't Buy Internet Leads

Feb 5, 2008

  1. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    I think internet leads has to be the most bandied about topic on this forum. I got to thinking after talking with someone today that this "anatomy of a sale" from today might somehow benefit the newer agents on the board.

    Here we go...

    About two years ago I entered a 12 step program to get off internet leads. Too much stress from chasing, ROI goin' in the tank, high costs, etc. Decided to generate my own.

    It's amazing how much more fun, and less stressful the business is when you use "attraction" marketing as opposed to "chase" marketing.

    I had a 53 year old female CPA call me today. During tax season no less!Never met her, or talked to her before. Over the last year, she's received a monthly email from me, and four post card mailings. Total cost to me has to be less than $7.00.

    I didn't have to make eighty-four calls to her, build credibility or expertise, or share her with up to twenty-seven other agents. She called me.

    Long story longer...just received notice from our buds at Time/Fortis/Assurant/Time her health premium (HSA-5k deductible) was goin' up to $404/month. Clean health, no issues.

    Golden Rule - $222/month. 'Nuff said.

    BTW, she's got three clients she'd like to refer immediately.

    What do they say with internet leads - it's good to get back $6 to $9 for every dollar spent?

    I got back $83 for every dollar spent (more after referrals).
     
  2. Crabcake Johnny
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    Crabcake Johnny Guru

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    year and a half shared lead free. Never been happier, never had less stress. I do not like chasing anyone down. You either want or don't want my services.

    I like at least three different ways to market; for me:

    telemarketing
    BtoB
    Local events

    Breaks up the day. If one day I ain't in the mood to make calls I'll do something else.

    Telemarketing is not attraction marketing but it's free and hits my target market of small biz owners. I'm sure I could use all kinds of internet wizardry - 10X the expense - same results.
     
  3. salpro22
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    salpro22 Guru

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    That's awesome Paul. What's her name and number so I can follow up and answer any questions she may have :)
     
  4. JDB
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    JDB New Member

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    I'm just getting started on that 12 step program.
    I just started on my own telemarketing.
    What other steps did you take?

    I would love be using more "attraction" marketing techniques.
    What kind of email are you sending out on a monthly basis to your email list?
     
    JDB, Feb 5, 2008
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  5. somarco
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    somarco GA Medicare Expert

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    Not picking a fight, but your total cost is more than $7.

    In calculating your acquisition cost you have to look at the total spent on all marketing sources (newsletter, post cards, advertising, speaking engagements, etc.) and divide by the number of new clients you picked up during that time period.

    I can just as easily pick out someone I sold yesterday and say my cost was $8 and my commission was $550 but that would not be an accurate reflection of my total marketing costs.

    It's kind of like the guys who say their leads are free since they go door to door handing out flyers or sitting in their underwear calling from a phone book.

    There really is no such thing as a free lead . . . you did SOMETHING to generate interest, and somewhere along the line you spent SOMETHING (gas, copies, etc.) to get that lead.

    I have folks contacting me from time to time too. Some are referrals, some come from community forums where I answer insurance related questions, some actually stumble across my sites on the web.

    Each source has a cost, including those who just happen to find me from Google.

    Bottom line with any marketing, if it works for you then fine.
     
    somarco, Feb 5, 2008
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  6. NWInsurance
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    NWInsurance Expert

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    I was going to say the same thing. Without looking at the total cost you pay for marketing you can't say that you only paid $7.00

    Although at the same time regardless of the end ROI, I agree about the internet leads being junk and a waste of time.
     
  7. mcday
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    mcday Super Genius

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    What company do you use for your monthly email?
     
    mcday, Feb 6, 2008
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  8. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    aweber
     
  9. exofficio
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    Do you recall how you got her on your mailing list? I'm just wondering where the lead came from to begin with... maybe one of those local events?
     
  10. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    I have developed my own list over the last couple of years by using two telemarketers.

    My monthly email is in a newsletter format - not fancy - not salesy - the focus is on education when buying individual health insurance.
     
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