Lead Service - Shhhhh, Top Secret!!!
- Thread starter Hollywood
- Start date
There is a huge difference between those asking the questions and those they expect to answer. The first few years are not easy and coming up with a system that delivers enough leads to work and make a living with is difficult. For most of us, we do not rely on any one source or method.
After you have been doing it a while you get leads from several sources, depending on your style. A phone oriented sales rep dials off of lists and makes sales, and they get referrals. I am not a phone oriented sales rep. I use a combination of direct mail, internet leads, and in the end get most of my sales from followup and referrals. Once you have a customer base the referral and cross selling opportunities fill the void and put you over the top,
The mailings and internet leads are just to fill in the voids, keep the funnel full so to speak, created new opportunites and replace lost business, not to be your primary source of business to fill the bank account. If you are depending and on any one single marketing method and you are relatively new, it is going to be difficult to grow your business.
After you have been doing it a while you get leads from several sources, depending on your style. A phone oriented sales rep dials off of lists and makes sales, and they get referrals. I am not a phone oriented sales rep. I use a combination of direct mail, internet leads, and in the end get most of my sales from followup and referrals. Once you have a customer base the referral and cross selling opportunities fill the void and put you over the top,
The mailings and internet leads are just to fill in the voids, keep the funnel full so to speak, created new opportunites and replace lost business, not to be your primary source of business to fill the bank account. If you are depending and on any one single marketing method and you are relatively new, it is going to be difficult to grow your business.
- 14,809
This is basically what I preach. New agents say "I'm just working internet leads." My reply is "so what are you doing with the other half of the day."
The truth is due to budget constraints most agents cannot buy enough leads to keep them busy 8 hours. This is when using other marketing methods comes in.
First, now you're working all day and secondly, you don't live and die on leads. If leads are your only source you're up and down with the quality of the lead vendors. Sometimes you're left hanging when that "great" vendor all of a sudden isn't so great.
The only way to avoid that roller coaster if internet leads are your only source is high volume. Even at that, you should use 2 or 3 vendors.
The truth is due to budget constraints most agents cannot buy enough leads to keep them busy 8 hours. This is when using other marketing methods comes in.
First, now you're working all day and secondly, you don't live and die on leads. If leads are your only source you're up and down with the quality of the lead vendors. Sometimes you're left hanging when that "great" vendor all of a sudden isn't so great.
The only way to avoid that roller coaster if internet leads are your only source is high volume. Even at that, you should use 2 or 3 vendors.
This is what I am up against right now. I am still new, so I am living on the leads that the company gives me. I hate feeling that my life is based on their leads which seems like every body else is the area gets. So I have decided to not let that aspect of the job control my destiny, I am doing direct mailings which I have had a pretty good response with. (A member here said he would help with them, I email them to him a few weeks ago and never heard from him again, I hope they are working out well for him lol)
I LOVE old leads that are over a year old. To me, when I call a hot lead, it seems like I am the 10th person to call them, but when I call the old ones, nobody else has called and it is working out better, they seem much more willing to talk.
- 7,066
When I first started selling insurance, I was captive, the company was selling direct mail "leads" to agents for $25 each. I originally bought a few and then I came to the same realization you have.
I found out that they would give me the old, cold, "not any good" leads for free. I stopped buying them and took all of the "old, cold" leads they could give me. After that I was always in the top three agents for the month. There were 19 of us working out of that office.
You will do well in this business. You sound like a "real insurance agent", not just an "app writer".
Thanks
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Thanks Frank, I am trying.
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- 9,744
But while you are doing, is that not trying to do what you are doing? At that point though, does it not become done and not doing? So if you are trying you are doing, but once you do you have done?
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insurance123
Expert
- 38
This is all good conversation. I know an agency that uses direct mail only. They send out about 5,000-10,000 mailers per month for P&C and achieve some great results. I watch them consistently put $40,000 per month in premium on the books (one agent). I can't figure out how they are achieving these results from direct mail alone.
I think the secret to their success is the quality of the mailing list. These mailers are being sent to the right people. I would estimate that the average cost is about $2,800 per month. Assuming an average 16% commission = $6,400. Not bad when renewals start coming in. Does anyone else know someone who is putting up that kind of revenue with only 5-10,000 mailers?
I think the secret to their success is the quality of the mailing list. These mailers are being sent to the right people. I would estimate that the average cost is about $2,800 per month. Assuming an average 16% commission = $6,400. Not bad when renewals start coming in. Does anyone else know someone who is putting up that kind of revenue with only 5-10,000 mailers?
- 1,641
A 1% response rate for 10,000 pieces is 100.
What's the annual premium of an auto policy? I pay about $800/yr. and I have a good record and good credit.
So $40k in premium would be 50 people paying $800?
Seems reasonable.
If 1/2 of 1% response, that's 50 folks. At $1200 year premium, it only takes 33 of 50, or 2/3 conversion.
Mailers will run $3500.
What's the annual premium of an auto policy? I pay about $800/yr. and I have a good record and good credit.
So $40k in premium would be 50 people paying $800?
Seems reasonable.
If 1/2 of 1% response, that's 50 folks. At $1200 year premium, it only takes 33 of 50, or 2/3 conversion.
Mailers will run $3500.
