Who OWNS Your Leads?

[Newby]

A recent poster posted this:

I have put the door knocking on hold since I bought some Bonus Leads from XYZ Upline (47 of them). Their Bonus leads are leads that have been sold before and are at 90-280 days old. So...there is a little bit of a challenge with them but I've sold two of the leads so far. It is great practice for me at a discount price. I'd rather get the practice for $10 a lead compared to $24.

I'm not bashing the poster for buying the ages leads but should the FMO that already sold the leads once to their agent, be able with a clear conscious to sell it again to the 1st agent's new competitor. The first agent paid full price (or a discounted price with reduced commissions) for the leads. The leads should be owned only by the original agent. HE and only he should be able to sell his leads to a new agent competitor if he wants to. The upline FMO has no cost in these leads at all. If they are allowed to sell them over and over, it's a huge money-maker for them.

I don't think as an FE agent that I ever want ANYONE between my leads and me. I want them direct from the lead vendor. My leads that I pay full price for are mine forever and I will work them again as aged leads.

Am I wrong on this?

 

[xrac]

I do not think you are wrong!

 

[Agentguy5]

Well, if I were the IMO, and I was losing money on my leads to give an affordable/discounted lead to an agent, I might want to resell the lead after 90 days to make back some of the money I lost. As long as my agents know about this, and understand that this is the deal they are signing up for, then it shouldn't be an issue..

I, on the other hand, give my agents ALL of my Old leads that I blew on the phone, or couldn't find at the house, for free. This is a good way to help them make those first sales and to see how valuable the NEW lead will be compared to my older, beat up lead...

 

[Justin Bilyj]

I want to point out a few variables.
Agents don't last long, and they certainly aren't thorough to keep going back, especially after the person initially might have been not interested.
I don't think it wouldn't be as bad if they pulled out the leads that weren't sold obviously. Also, I don't know what the agencies territories look like.

But if they were doing this behind their own agents backs (the reason my father jumped the insurance ship back in the day; his agency started to do the same thing), that is misrepresentation, but they knew these were B leads right?

As an agency owner Newby, do you think it would make agents work harder knowing their leads were thrown back in the pile after 90 days?

 

[houcoogster]

I would beat the living you know what out of an fmo that pulled this on me!

In addition the second or 3rd guy could be trying to roll your biz.

$10 or $24 for aged leads....Stupid!

 

[Rearden]

I learned the hard way.

Another major IMO company, of which I was contracted with, but won't mention their name, I feel pretty solidly convinced double-dealed my leads in the final weeks of my tenure there before transitioning to Newby's IMOs.

Now that I deal directly with a lead vendor without the middle man, my production has skyrocketed, and my lead quality is much better than it ever has been.

You *do* get what you pay for when it comes to leads. Yes, they are more expensive up front, but the cost over time is much, much less.


PS: It might not be the leads -- it could be some of that fabled "monkey dust" Travis and John are sharing with me that's caused such a great shift in my production...

 

[Indy007]

You're spot on with that. The original agent is the one who paid good money for the mailing/leads, and should be the only one to reap any benefits from them. If the agent wants to sell the leads he couldn't close, thats the agents Decision. Just because the FMO placed the order for the agent, or the vendor physically mailed them out doesn't mean they should have any rights to them.

 

[xrac]

If an IMP is to resell leads I think it should only be after 120 days or more and only with the up front knowledge of this to the agent who originally had the lead. Some IMO's may feel the necessity to recover some lead costs due to non-producing and washout agents. However, this is a real sticky situation if someone sells a lead that someone who really works their leads has had. It would be best that IMOs do not resell these leads.

 

[moonlightandmargaritas]

Well, if I were the IMO, and I was losing money on my leads to give an affordable/discounted lead to an agent, I might want to resell the lead after 90 days to make back some of the money I lost.

Got some news for ya...IMOs/FMOs don't lose money on leads.

 

[Pete Cormie]

You're absolutely right Newby. That type of dirty dealing by other IMO's is what got me to start as a MGA. I had folks who wanted to learn the business and I didn't want them to get abused like so many new agents do.

I require new agents to buy their own fresh leads and to have them sent direct to them from the vendor. I also only recommend lead vendors I've used and trust. Then I start them at street, or above, if they have experience and don't need me much.