Shared Leads Vs. Exclusive Leads

[dadkins131]

Shared Leads Vs. Exclusive Leads

I've always looked at it like going on a date with a hot chick.
Do you want to be the only guy on the date with her,,or go with 5 other guys? I want it to be either me or nothing. 5 other guys makes it a lot harder.

You might not be the best, or the first one to call her. The client might get mad that so many agents is calling them. THey just wanted a quick quote from someone. Not all this crap.

Just some food for thought.

Ya, I agree on your points, that is exactly why I went with exclusive before.

The reason why I am throwing some shared leads in to the mix though, is because everytime I get a **** lead, bogus, hang up, etc etc, it costs me 29$ at exclusive, but only 11$ shared.

The company I am using for shared, based on my assumption of how big their customer base is, and based on the few tests I ran against their website, they only sell an average to 2.1 agents per lead, (their claim is they only sell to max of 5).

If I can leverage my good phone voice, sales experience, and super efficient lead management, quoting, and follow up systems, I can maintain the same close %, but pay about 30% less per lead. In addition, my exclusive company allows only 10% refunds requests, the shared allows 40%. So that right there would improve my ROI significantly.

Lets just hope this all pans out.

 

[ims01]

The issue with shared leads is that they also go to call centers. You have to be chained to your desk to be able to beat a call center to the call.

The only way you will know is to calculate your ROI on both types and compare. Also, you have to realize that someone will be calling behind you. You will be forced into offering the lowest premium. You'll find, if you haven't already, that many agents will quote Pref. Plus for everyone just to get in the door. It's a sneaky way of doing business and often backfires, but you will need to learn how to deal with that.

 

[CHUMPS FROM OXFORD]

Exclusive leads? No such animal. I have some exclusive leads. Never bought. Never sold. But they are not exclusive. They are, but they aren't.

 

[dadkins131]

The issue with shared leads is that they also go to call centers. You have to be chained to your desk to be able to beat a call center to the call.

The only way you will know is to calculate your ROI on both types and compare. Also, you have to realize that someone will be calling behind you. You will be forced into offering the lowest premium. You'll find, if you haven't already, that many agents will quote Pref. Plus for everyone just to get in the door. It's a sneaky way of doing business and often backfires, but you will need to learn how to deal with that.

I've heard the call center deal before, though based on my tests, i havn't had one call center call me, or more than 2 agents for that matter.( and they weren't very good).

In regards to the lowest premium issue, I ALWAYS quote the lowest premium. My business model and service is to help my clients find the lowest cost insurance based on their needs and health. I work for them, not the carrier, and put them first.

Lowball offers are a pain in the ass, but I make sure my potential clients understand why they are being quoted a certain rate, and assure them that they ARE receiving the lowest rate available to them. I tell them to expect lowball offers and be ready for them (if they talk to other agents) and they have the knowledge to recognize the bullshit coming a mile away.
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Exclusive leads? No such animal. I have some exclusive leads. Never bought. Never sold. But they are not exclusive. They are, but they aren't.

Exactly my point. I (almost) know my exclusive vendor sells only to me, yet nothing is stopping that lead from hitting other sites, which they often do.

 

[CHUMPS FROM OXFORD]

"Exactly my point. I (almost) know my exclusive vendor sells only to me, yet nothing is stopping that lead from hitting other sites, which they often do."

Yes. So why do so many people have trouble understanding that concept?

 

[ims01]

If they haven't called you, how do you know they are not very good? If you have a shared lead vendor not selling to call centers, thats great. Buy all you can afford because it wont last long.

The lowest premium isnt always the best choice for the client. There are UW considerations, UW requirements, average time a carrier takes to UW, the frequency of their other-than-applied offers, rating, etc. I've had many agents that only offered the lowest price and just one is still in the business. He figured it out early enough.

Now, I'm not trying to be a smart ass, but look at your numbers. If I spent $12,000 to make $21,750, I'd change my model. Agents that follow our program regularly hit $6 ROI. That is our target. We know all the key numbers and ratios so we can pin point any weak point in an agent's business.

You are on target with the way you prep your prospects for low balls. That is the best way to handle them.

 

[dadkins131]

If they haven't called you, how do you know they are not very good? If you have a shared lead vendor not selling to call centers, thats great. Buy all you can afford because it wont last long.

The lowest premium isnt always the best choice for the client. There are UW considerations, UW requirements, average time a carrier takes to UW, the frequency of their other-than-applied offers, rating, etc. I've had many agents that only offered the lowest price and just one is still in the business. He figured it out early enough.

Now, I'm not trying to be a smart ass, but look at your numbers. If I spent $12,000 to make $21,750, I'd change my model. Agents that follow our program regularly hit $6 ROI. That is our target. We know all the key numbers and ratios so we can pin point any weak point in an agent's business.

You are on target with the way you prep your prospects for low balls. That is the best way to handle them.

I'd really be interested in seeing a $6 ROI business model. I have heard that number thrown around a lot, but forgive me if I am skeptical.

Just to add to the last convo, I don't just quote the lowest price on my screen, I make sure to field underwrite, I only quote A or better rated carriers, and I quote the lowest price available to that individual based on where they qualify.

I have never heard the term " other than applied offers", but I know what it would mean. Where can one find info like that?

 

[LotusCeo]

I'll be Life/Health licensed in Texas the end of this month. What are your exclusive lead sources for all the insurance products you sell?

Lotus
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THIS MESSAGE IS FOR ACA ALL THE WAY:

I'll be Life/Health licensed in Texas the end of this month. What are your exclusive lead sources for all the insurance products you sell?

Lotus
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Life and Annunity leads from internet vendors average an awful closing ratio. I buy tons and tons of internet leads. I have a higher closing ratio on selling life policies to medicare leads than I have selling life policies to a life lead.

Simple reason, the medicare leads already trust me because of how I handled their medicare insurance. The life lead has no idea who they can trust and they are going to get called by a call center selling them a POS graded life policy of some sort that is going to cost 9000 a month in premium at age 80.

Don't buy shared direct mail leads either. If you wanna buy life leads, buy your own mail drops of FE paper leads, and shoot them into zip codes with a 35,000+ average tax return, or 25% or higher over 65 population only. You'll average around the same cost you're averaging now with more serious buyers.

Buy a business card size ad in the local paper next to the obituaries. (yes I know it sounds dirty) I've been trying to sponsor a voice ad on the phone line people call in to get the obituaries as well.

I thought once about handing out flyers at the funeral home but I figured that was crossing the line.

THIS MESSAGE FOR KSIGMTSU

I'll be Life/Health licensed in Texas the end of this month. What are your exclusive lead sources for all the insurance products you sell?

Lotus

 

[wayner65]

Can anyone tell me what the actual cost is for leads for agencies like ACA?