Ok... John has inspired me to give the door hangers a try. I like the numbers John has shown, but I plan to do this and put up ACTUAL ROI numbers, not estimates.
I ordered 10,000 door hangers today. I pretty much copied John's door hanger, but tweaked it slightly. The goal is to drive people to my Norvax site which will be up on Wednesday or Thursday of this week.
How long it takes to get the flyers out (flyers/hour)
Legitimate lead totals
Total sales
AV/Commissions (I will base these numbers on street level commissions-20%)
Total ROI-(Gross revenue-Expenses=Net profit)
I am excited to see how this goes. I will be placing the flyers out myself on the 1st 10,000 to confirm that it get's done and to get an idea of how many flyers/hour can be successfully put out. (*My ROI numbers with assume $10/hr in expenses for putting the flyers out.)
One question I do have for John is how long doorhangers.com takes to get the flyers out to you?
On a side note, I think having a quoting site (Norvax or Quotit) is almost necessary to successfully pull this off. I don't see getting much better than a .50% (maybe less) return if you are expecting these people to call in.
It's taken them around 2 to 3 weeks to get them out in the past. My return in the past has been .05% closing 1 out of 6 with average premium of around $3,100.
Easy:
10,000 X .05 = 50 leads = 8 apps X $3,100 = $24,800 AV X 20% = $4,960.
The investment was $299 and a 5K return is great. So what's your time worth to put them out? Dunno - what's your time worth while your spending non-productive hours each day in your office.
Your time only has value if it would have been spent doing another client-gaining activity which is not often the case. Often new agents have a lot of down time during the day - 100% unproductive.
I do indeed personally place 200 per hour in townhome areas - 2 hrs per day = 10 hours per week = 2,000 hangers which means in 2.5 week you'll have placed 5K worth of business.
Downsides? Hop on a stairmaster for 2 hours a day - that's what it feels like. However, also great for getting much needed excercise.
------------------------------------ Health Insurance Agents: Training, Support, Discounts, E&O for $440 www.ihiaa.com
It's taken them around 2 to 3 weeks to get them out in the past. My return in the past has been .05% closing 1 out of 6 with average premium of around $3,100.
Easy:
10,000 X .05 = 50 leads = 8 apps X $3,100 = $24,800 AV X 20% = $4,960.
The investment was $299 and a 5K return is great. So what's your time worth to put them out? Dunno - what's your time worth while your spending non-productive hours each day in your office.
Your time only has value if it would have been spent doing another client-gaining activity which is not often the case. Often new agents have a lot of down time during the day - 100% unproductive.
I do indeed personally place 200 per hour in townhome areas - 2 hrs per day = 10 hours per week = 2,000 hangers which means in 2.5 week you'll have placed 5K worth of business.
Downsides? Hop on a stairmaster for 2 hours a day - that's what it feels like. However, also great for getting much needed excercise.
After doing this myself, I will farm out the BS work. I'm thinking about having my sub-agents do this to generate leads, or look at dropping 20k or 30k flyers and selling the leads to my agents at cost or giving leads out based on production (assuming my ROI numbers are about like yours)
I also agree that there are several unproductive hours in a day that I could better spend doing this. I also go to the gym and run about 30 minutes each night which takes about an hour after driving there, so I could potentially cut my gym time out for a couple of weeks while doing this experiment.
It makes sense... I do very little insurance work in the mornings. Right now all I do is manual quoting which will be much faster once Norvax is up and running.
I live in Austin which enables me to pretty much do this year-round if it works...
The investment was $299 and a 5K return is great. So what's your time worth to put them out? Dunno - what's your time worth while your spending non-productive hours each day in your office. I do indeed personally place 200 per hour in townhome areas - 2 hrs per day = 10 hours per week = 2,000 hangers which means in 2.5 week you'll have placed 5K worth of business. Downsides? Hop on a stairmaster for 2 hours a day - that's what it feels like. However, also great for getting much needed excercise.
I've never gone the door-hangers route...so, thanks for the input on ROI. As for the legwork...ain't life wonderful...I have four kids, ages 8 to 12. I think that when I try this, I'll just drive them around, pull up to a complex or neighborhood, and let them have a little contest. Here we go kids...let's play a new game called "Who can place the most door-hangers for Daddy in 5 minutes". Free labor. What a country.
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Tim Lett
P.O. Box 1617
Gadsden, AL 35902
Yes....my son's in for a lot of fun when he gets a little older.
Well, you know.....we could arrange for my 8 & 12 year old sons to do a little for-hire labor if its gonna be a while before the boy is up to the task.
Obviously you were spoiled rotten. When I was 7, I had the same job
But had to gnaw though the stalks with my teeth.
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When I was 12 I was mowing a 4 acre lawn with an 18" Lawn Boy push mower and that is the truth. When I got done if it had been raining a lot it was just about ready to start mowing all over again. I also cleared bushes, sassaffrass saplings, honeysuckle, and briars from a fence row with a hoe and an axe at 12 years old. That is the absolute truth. I am a poor country farm boy from the south and that wasn't the hardest stuff I ever did either. Hard work was all I ever knew.
Door hangers-Real ROI numbers
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