Cost Per Sale, Leadpod vs calling leads manually

[dr954]

I have been using Leadpod now for 60 days. Results are not so good. I am wondering if anyone else has experienced the same. I am sending Leadpod shared internet leads from 2 sources they recommend. I am buying leads in Florida.

After adding the total cost of internet leads I send to Leadpod and the cost of all transfers, I have calculated the cost per sale, and cost per transfer.

March '08 - cost per sale= $451, cost per transfer= $94
April '08 - cost per sale= $315, cost per transfer= $59
May '08 - cost per sale $630, cost per transfer= $85

I think these numbers are horrible, and am on the fence about trying them for a little longer, or to stop using Leadpod's service.

In February 08, I called all shared leads myself and calculated my cost per sale to be $135.

For those of you that have calculated your cost per sale on shared internet leads, please post your averages. If you have tried Leadpod with success, let me know your numbers vs what they are if you called them on your own.

Thank you!

 

[Crabcake Johnny]

Our numbers don't matter - sounds like you need to dump 'em.

 

[somarco]

If your cost per transfer is $60 - $90 then your closing ratio sucks.

You need to re-evaluate something

 

[TXINSURANCE]

I spent around $5000 with them this month so far.

I am severely upside down and here is why.

Apx 15 to 25% of the calls no one is on the line or it gets cut off. They did give me a nominal credit as I complained, they were fair about it.

Apx. 30 to 50% of leads will be uninsurable. They do screen for 9 conditions which catches some pregnant and diabetics - but they will never screen for RX or how we would screen.

Some classic transfers:

-On 8 RX for migraines
-Needs a new batter for their back??? (energizer bunny?)
-Needs a new fake eye
-Morbid obese
-RX, RX, RX and more RX

This will vary by your lead source.

The other issue is there is what I feel to be a lot of wasted leads. You can print out the report of "bad" leads online and a lot say "not interested" or "received too many calls" or "only wants email" - well that is BS in my world.

We called the "bad" leads (that were not marked uninsurable) and if you are GOOD you will get over those COMMON objections VERY easily.

So here is my situation...

-I am $5000 in the hole
-My production is DOWN over last month (doesn't justify the $5k)
-Extra several thousand in lead cost (you need a TON of leads for them to call)

So where is the advantage?

My agents hate LeadPod which is shocking, I thought they would love to take inbound calls all day - but remember these are NOT inbound calls they are outbound, turned back into an inbound.

Out of 100 leads:

25 calls dropped / dead air
35 uninsurable or complete jokers

40 leads left...

If you are a KILLER and get 1 of 4 (rare) you are looking at 10 apps out of 100 ($1100 in xfer fees plus leads). 1 in 6 or 1 in 10 the story gets worse real fast.

We are exploring other technology and likely going back to cheap hourly screeners using Al's dialer and a combination of cheaper efforts.

I don't see how this can work at this point.

 

[Crabcake Johnny]

I, personally, have had none of those issues.

 

[CHUMPS FROM OXFORD]

"from 2 sources they recommend" Hmmm...

Maybe you should dump the lead companies that Leadpod recommends and pick two new ones. Although, that might not make a difference.

 

[TXINSURANCE]

Here is the big issue I left out...

They ONLY work NEW REAL TIME leads sent FROM THE LEAD COMPANY. I have a problem with this more than I though.

No one is going to get over objections and close the new (and expensive) leads like we do internally.

If I had an agent that received that amount of blow offs - they would be fired.

If they want to work my 14+ day old leads for $11 a transfer, that is a good deal (maybe). There are several big issues in my mind that are a problem:

1. Paying for a high amount of uninsurables, do to a light pre screen

2. Working only NEW expensive leads and take "NO" for an answer too easily compared to what you would do on your own.

I know we can do this internally cheaper.

I am sorry it took me $5000 to figure it out, but I don't see the numbers working for my operation.

I will say the technology is good, the online system is good, the email support is good (phone is really not a practical option with them). Reports are GREAT. Detailed bad lead reports are GREAT.

I really want this to work, but every time I run the numbers - it does not work out.

 

[dmiller90]

I spent around $5000 with them this month so far.

I am severely upside down and here is why.

Apx 15 to 25% of the calls no one is on the line or it gets cut off. They did give me a nominal credit as I complained, they were fair about it.

Apx. 30 to 50% of leads will be uninsurable. They do screen for 9 conditions which catches some pregnant and diabetics - but they will never screen for RX or how we would screen.

Some classic transfers:

-On 8 RX for migraines
-Needs a new batter for their back??? (energizer bunny?)
-Needs a new fake eye
-Morbid obese
-RX, RX, RX and more RX

This will vary by your lead source.

The other issue is there is what I feel to be a lot of wasted leads. You can print out the report of "bad" leads online and a lot say "not interested" or "received too many calls" or "only wants email" - well that is BS in my world.

We called the "bad" leads (that were not marked uninsurable) and if you are GOOD you will get over those COMMON objections VERY easily.

So here is my situation...

-I am $5000 in the hole
-My production is DOWN over last month (doesn't justify the $5k)
-Extra several thousand in lead cost (you need a TON of leads for them to call)

So where is the advantage?

My agents hate LeadPod which is shocking, I thought they would love to take inbound calls all day - but remember these are NOT inbound calls they are outbound, turned back into an inbound.

Out of 100 leads:

25 calls dropped / dead air
35 uninsurable or complete jokers

40 leads left...

If you are a KILLER and get 1 of 4 (rare) you are looking at 10 apps out of 100 ($1100 in xfer fees plus leads). 1 in 6 or 1 in 10 the story gets worse real fast.

We are exploring other technology and likely going back to cheap hourly screeners using Al's dialer and a combination of cheaper efforts.

I don't see how this can work at this point.

10 apps X 3000.00 Annual 20% commission =$6000.00-1100.00 (xfer fees and Leads)=$4900.00 whats so wrong with that? I have never had that bad of Transfer results, it all boils down to the Lead Source,

 

[tryan326]

Here is the big issue I left out...

They ONLY work NEW REAL TIME leads sent FROM THE LEAD COMPANY. I have a problem with this more than I though.

No one is going to get over objections and close the new (and expensive) leads like we do internally.

If I had an agent that received that amount of blow offs - they would be fired.

If they want to work my 14+ day old leads for $11 a transfer, that is a good deal (maybe). There are several big issues in my mind that are a problem:

1. Paying for a high amount of uninsurables, do to a light pre screen

2. Working only NEW expensive leads and take "NO" for an answer too easily compared to what you would do on your own.

I know we can do this internally cheaper.

I am sorry it took me $5000 to figure it out, but I don't see the numbers working for my operation.

I will say the technology is good, the online system is good, the email support is good (phone is really not a practical option with them). Reports are GREAT. Detailed bad lead reports are GREAT.

I really want this to work, but every time I run the numbers - it does not work out.

In all fairness their job isn't to prescreen its to get clients on the phone for you. You should be prescreening yourself. Maybe you might want to look at the lead sources your putting into it. Then again if your ROI sucks then its time to try something different.

 

[Crabcake Johnny]

30 to 50% of the leads being uninsurable is a huge issue.