Best Direct Mail Leads Companies

[tikibarrister]

$40 for a DM card? That’s crazy!

Certainly says something about supply and demand, eh?

Seniors getting flooded with cards...less supply of those actually reading and responding. Even FE's biggest boosters like Duford say the market is saturated.

Agents flooding into FE sales due to changes in the markets elsewhere (or so I've heard). A lot more demand.

The economics are interesting.

• Buy 100 leads for $4,000.
• Close rate? Maybe 25%? Though I'm thinking market saturation is an accelerating drag on this.
• Average sale? $50 is bandied about but I've read $30 or $40 is more the median
• Retention rate? 80%? Because it's FE, you probably care primary about the first 12 months, because renewal commissions drop to to single-digit percents after that, and you're dealing with people who often have serious health issues so it's not like you're going to be enjoying that stream for decades.

You spend $4000, close 25 at $30/mo and keep 80% of that, which nets (25 x $30 x .75 =) $562 a month, or $6750 a year. And of course, 30-40% of that goes to taxes, so maybe we're at ($6750 x .7 =) $4725 a year after taxes.

Net take-home profit on that $4000? $725, which doesn't count gas, mileage, business cards, etc.

I suppose one way of looking at it is that $725 on $4000 is an 18% return.

Another way of looking at it is that if you make $725 and each lead takes 3-4 hours to call, drive, sit, and paperwork, plus time for those you can't get to sit, so maybe 75 hours...you're making $9.60/hr. That's before taxes, and not considering the opportunity cost of your money.

 

[senior-advisor-indiana]

And of course, 30-40% of that goes to taxes, so maybe we're at ($6750 x .7 =) $4725 a year after taxes.

You most likey wouldn't be paying taxes on any of that $6750, certainly not the whole amount. -subtract $4k in lead expense, mileage, and whatever else and then you pay tax...

 

[Johnny Hooker]

You number crunchers crack me up. Get off your ass and get to work. The numbers will take care of themselves..

 

[VolAgent]

If you know of anyone who has signed up for that deal, please send them my way. A fixed price lead program and higher comp would improve those numbers substantially. Also, that is way too low a median average premium.

 

[NSRH]

If you know of anyone who has signed up for that deal, please send them my way. A fixed price lead program and higher comp would improve those numbers substantially. Also, that is way too low a median average premium.

Whats the going rate on fixed leads nowadays?

 

[VolAgent]

Whats the going rate on fixed leads nowadays?

360 is still at $27. So right there is $1300 versus that example. Plus the comp and the premium are low.

 

[NSRH]

360 is still at $27. So right there is $1300 versus that example. Plus the comp and the premium are low.

I thought $40 was super high! $27 is a good price for a fixed cost DM lead.

 

[bboman23]

$28-$30 is about where fixed price leads are. Depends on the wording usually. Final Expense is one price, Life Insurance is a little more and Affordable Life Insurance is even more.

 

[Baseball7]

[QUOTE="tikibarrister, post: 1235429, member: 86476 $9.60/hr. That's before taxes, and not considering the opportunity cost of your money.[/QUOTE]

I’ve worked 60hrs a week and made $20/hr so I know what that’s like. I can assure you i’m not working this job for that. Nor did big city fire dept send me to Hawaii for being good at my job.

 

[KRobby]

each lead takes 3-4 hours to call, drive, sit, and paperwork, plus time for those you can't get to sit

Need better route optimization software.