Lead Generation Company Research

[akwan]

I am doing some marketing research for a business project in which i have to establish a company.

I have been reading a lot of posts on this forum and i have a few questions that still linger about the financial potential of opening a lead generation company.

How many agents use lead generation companies?

How often do you purchase leads and how long is the
general turn around time before you purchase another set?

What do you look for and expect in leads?

Any help is appreciated.

 

[VolAgent]

How are you planning to generate your leads, internet, telemarketing, direct mail, what?

 

[akwan]

Im thinking of direct mail because it appears to have the most potential in terms of return. Are any of the other ways more favorable than direct mail?

 

[Josh]

Is this a school project?

 

[akwan]

yeah its for my business course. any help would be greatly appreciated. this is a lot harder than i thought

 

[VolAgent]

yeah its for my business course. any help would be greatly appreciated. this is a lot harder than i thought

If it was easy, everyone would be doing it.

 

[Josh]

Theory works a lot easier than application. Only for academic purposes am I stating the following:


How many agents use lead generation companies? At one time or another, most will.

How often do you purchase leads and how long is the general turn around time before you purchase another set? If they work well, anywhere between just before then run out or quite a while after they run out. Agents often time are broke and don't have the money to buy leads until they get commissions coming in or can steal their spouses paycheck to buy more.

What do you look for and expect in leads? A reasonably well qualified lead meaning they qualify on health or other requirements and that the leads result in a low enough acquisition cost to be viable. Most agents want an 8:1 to 10:1 ROI, but honestly, if it's consistent and even as low as 2:1 that's still doubling your money. That's a bit of an extreme, but even a 4:1 would be fine as long as it was consistent.

Again, if this is just for academic purposes, you could suppose that mailers cost $400/1k and that you could get a 2%-3% response rate and sell them for $35/each. Those numbers aren't right, but they're close enough that your teacher will most likely go along with it. Agents probably need 25 leads/week and would order every few weeks. Again, most folks here would argue with those numbers for valid reasons, but that should get you pointed in the right direction.

 

[nd4life]

MedicarePlanSolutions summed it all up about as well as possible. Use his response, plug it into you paper and viola! *Makes me wish the internet was around when I was in school. Good luck!

 

[katehblog]

How many agents use lead generation companies? Hiring a lead gen company is a great idea, and most people will at some point.

How often do you purchase leads and how long is the general turn around time before you purchase another set? That is dependent upon the lead and the price... if it works well, you will buy them just before they run out (if you can afford it).

What do you look for and expect in leads? The reason agents want ROI's as high as 8:1 is because the ROI is not consistent. A consistent lead with a lower ROI is much more ideal.

 

[pghman]

What do you look for and expect in leads? The reason agents want ROI's as high as 8:1 is because the ROI is not consistent. A consistent lead with a lower ROI is much more ideal.

Ideal would be consitent with high ROI (ROI= Return on Investment). Too low of a ROI such as 2:1 doesn't work well because that fourmula is only based on money and doesn't take time into consideration. This is why a 4:1 ROI (realistic if quality) and consistent would make the business model sucessful.

Higher ROI would always be better. If the agent could count on it but truthfully if you as a lead generator were producing a 8:1 ROI then you could double your prices so ROI would still be 4:1 but at the same time making your company twice as much profit. That was hard for me to write but does that make sense?