DM Cost Per Acqusition?

[geoagency]

Thinking about spending $400 a week on DM.

Hoping to get 40-80 leads for the month.

Don't know my close ratio yet because I haven't started.

Average FYC is around $250-300 in my area.

Wondering what the average cost per acqusition is for Medicare supplement clients using DM?

Hoping my CPA is around $75-$100, can anyone with experience with DM provide insight?

 

[Todd King]

Thinking about spending $400 a week on DM.

Hoping to get 40-80 leads for the month.

Don't know my close ratio yet because I haven't started.

Average FYC is around $250-300 in my area.

Wondering what the average cost per acqusition is for Medicare supplement clients using DM?

Hoping my CPA is around $75-$100, can anyone with experience with DM provide insight?

Some of this is going to depend on the area you are in, but let's say you get a 2% return. That's 20 leads per 1000 piece drop at around $430 per order. That's $21.50 per lead. You should be able to close 25% of the leads you get back with no problem. That's 5 sales. If these numbers hold true, that's $86 per client acquisition.

There are too many factors here to give you a perfect response. You'll have to measure it over time. There are times you'll make a double sale out of one house. There's times when you'll cross-sell a little FE or life with it, etc.

 

[geoagency]

Some of this is going to depend on the area you are in, but let's say you get a 2% return. That's 20 leads per 1000 piece drop at around $430 per order. That's $21.50 per lead. You should be able to close 25% of the leads you get back with no problem. That's 5 sales. If these numbers hold true, that's $86 per client acquisition.

There are too many factors here to give you a perfect response. You'll have to measure it over time. There are times you'll make a double sale out of one house. There's times when you'll cross-sell a little FE or life with it, etc.

But that gives me a general idea, thank you

 

[Bevo]

Some of this is going to depend on the area you are in, but let's say you get a 2% return. That's 20 leads per 1000 piece drop at around $430 per order. That's $21.50 per lead. You should be able to close 25% of the leads you get back with no problem. That's 5 sales. If these numbers hold true, that's $86 per client acquisition.

Todd would you say your CR example is based on Med Supps only or do you find most people are doing DM for both Med Supp and MAPD and getting the 25%?

 

[JimmyUt]

Todd would you say your CR example is based on Med Supps only or do you find most people are doing DM for both Med Supp and MAPD and getting the 25%?

I would bet you would need to be selling both to get that #. That's about what I do and I offer both

 

[Bevo]

I would bet you would need to be selling both to get that #. That's about what I do and I offer both

Well if the return is close to what Todd said, and the CPA comes close to that example then hell put the hammer down and quadruple up on marketing (or more) and let it ride right?

An $86 to even $140 CPA, I'll take that all day long.

 

[Chazm]

Wish I could sell 25% of my DM's. I can't even get ahold of 25% of them

 

[Roy2015]

I would bet you would need to be selling both to get that #. That's about what I do and I offer both

Hey Jimmy if you don't mind...Are you mailing to T65's only and getting the 25% CR?

 

[JimmyUt]

Hey Jimmy if you don't mind...Are you mailing to T65's only and getting the 25% CR?

I mail for both t65 and med supps. Probably closer to 20% if I work them hard enough

 

[timeflies]

At $450/1,000, that is less than 4 sales per lead drop. Are you counting referrals? This must be just for Med Supps. I can get 6-7 sales for that same drop to MA folks bringing my cost to under $100/sale. how would you factor in addl commissions earned from cross-selling FE?