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- #11
I just checked...the offer did come from a Mississippi company called One Life America. I've never heard of it before now. Anyone ever try it out?
What my friend has calculated is as follows: to get 20 leads a week, one would have to have 4 mail drops of 1000 each (each drop would net 5 leads at the .5% return rate in San Diego). At $350 per drop, the weekly lead cost would be $1,400.00 ($350 per 1,000 X 4). Based on these assumptions, the average lead cost for a direct mail drop would be $70.00 ($1400/20 leads).
I know that these assumptions might be wrong, but let's continue with the fantasy. If the average AP is $480.00 per sale, and you make 5 sales a week out of the 20 leads, then the 45% commission rate would yield about $1,080 to the agent and $1320 to the lead house. With that scenario, the agent would be paying about $66 per lead, or about the same ($70) if he did a mail drop.
Maybe the 45% numbers are not as bad as I originally thought. Especially since he does not have an unlimited lead budget.
Any comments?
What my friend has calculated is as follows: to get 20 leads a week, one would have to have 4 mail drops of 1000 each (each drop would net 5 leads at the .5% return rate in San Diego). At $350 per drop, the weekly lead cost would be $1,400.00 ($350 per 1,000 X 4). Based on these assumptions, the average lead cost for a direct mail drop would be $70.00 ($1400/20 leads).
I know that these assumptions might be wrong, but let's continue with the fantasy. If the average AP is $480.00 per sale, and you make 5 sales a week out of the 20 leads, then the 45% commission rate would yield about $1,080 to the agent and $1320 to the lead house. With that scenario, the agent would be paying about $66 per lead, or about the same ($70) if he did a mail drop.
Maybe the 45% numbers are not as bad as I originally thought. Especially since he does not have an unlimited lead budget.
Any comments?