I appreciate your post however your off base with my intentions of that question, pretty good assumption but off just a bit.
The reason for my question has nothing to do with pricing of my leads. Those are already set based of what my costs are and what I want to make per lead. I am not changing the pricing on those as they are set on my webt site.
The reason I asked those questions is because I am trying to see if my Client Retention / Referral plan will work for this industry. I use it for Real Estate, Auto, Mortgage, and loan modification and the program flat out works in those fields. I wanted to see if $21 per year per client is worth it in this industry from an agent perspective? From the sounds of it 300-700 would make sense to add that client to this program as it will yield at least one referral per client every 6 months on average, my thinking is that it might be even higher referral percentage in this field.
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Originally Posted by somarco
Sounds like you are trying to price your leads according to how much the agent makes. What we earn and how we are paid is irrelevant to your pricing.
You are calling businesses, some will have group insurance, some individual plans and some will have no insurance.
Individual health plans can be a quicker sale and more profitable in the short run, but group plans take longer to materialize and tend to be more profitable long run.
I expect to recoup my total cost of acquiring a new client in 60 - 90 days. I know what my ROI is, but that is based on leads that generally run $5 - $8.
At $22 - $50 each I have to re-evaluate my business model and see if it is profitable or not.
At $5 per lead I invest roughly $65 to gain a new client.
At $22 in order to achieve the same ROI (and assuming only one policy is sold) I must close at a higher rate than with shared internet leads.
There are several unknowns the agent has to evaluate and that will occur only over a period of time.
How quickly does the sale materialize, and how much revenue can be generated. If selling multiple individual policies the return can be quite good. If selling group, it will take a lot longer to recoup the investment.
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