- 10,276
Jeff...Very nice site. If you get a quote engine, it will be killer.
Lead Service - Shhhhh, Top Secret!!!
- Thread starter Hollywood
- Start date
OrlandoSEO
Expert
- 35
I have been toying with the idea of starting a small lead generation service. I do a large volume of marketing in multiple industries and joined this forum to do research for a new insurance agent in florida. Oddly enough. I ended up with a continuing insurance education client as well. After meeting several other sources for leads when it comes to internet I realized how crappy public sources are. The thing is, it is just to profitable to sell leads to multiple people than just to one.
So I might have come up with a middle ground. I am thinking about starting to spend a lot more money on PPC marketing insurance leads, but would like to have about 10 buyers for those leads. If anyone is interested in being a part of this you are welcome to contact me via P.M. I will explain my qualifications.
Or is 10 just to much. The thing is I won't work with a client unless they can make money off of my services. I would like to provide leads to the perfect number of agents where they all can make money (obviously some will make more than others) and I make a good amount of money two. Here is what I am thinking in my head. If I can generate real, quality leads for $15-$20 a piece. I mean the kind of lead that get distributed within 2 minutes of a real person filling it out, and an agent stands to make $500 over the next 3 years off of that lead, at what price could I sell that lead to 10 people and have it so I can make a great return and they are still happy with theirs. You input would be much appreciated. Please no jokes as to saying just one person for $5. Suggestions on number of agents and price per lead combo's would be very helpful.
So I might have come up with a middle ground. I am thinking about starting to spend a lot more money on PPC marketing insurance leads, but would like to have about 10 buyers for those leads. If anyone is interested in being a part of this you are welcome to contact me via P.M. I will explain my qualifications.
Or is 10 just to much. The thing is I won't work with a client unless they can make money off of my services. I would like to provide leads to the perfect number of agents where they all can make money (obviously some will make more than others) and I make a good amount of money two. Here is what I am thinking in my head. If I can generate real, quality leads for $15-$20 a piece. I mean the kind of lead that get distributed within 2 minutes of a real person filling it out, and an agent stands to make $500 over the next 3 years off of that lead, at what price could I sell that lead to 10 people and have it so I can make a great return and they are still happy with theirs. You input would be much appreciated. Please no jokes as to saying just one person for $5. Suggestions on number of agents and price per lead combo's would be very helpful.
- 299
Only problem there is that they are only doing $3600 Net and if there is a chargeback it can get ugly quickly. I hope they are adding other products to the mix and are not only relying on those deals.
- 10,276
$20 bucks a lead that goes to 10 people? I don't think that would sell very well.
- 15,319
If I pay $40, can I get 2 of them?
(Might be a good idea to negotiate a Chumps's Assn. discount)
Rick
(Might be a good idea to negotiate a Chumps's Assn. discount)
Rick
- 10,276
Good point Rick. As you know, the ONLY lead company we endorse is hiddenhealthgems.com
Their site is down right now due to the free lead promotion that swamped their site.
Our Association discount is 25% which partially offsets the 30% surcharge they charge our members.
Their site is down right now due to the free lead promotion that swamped their site.
Our Association discount is 25% which partially offsets the 30% surcharge they charge our members.
Mickey Mouse SEO, you are over-thinking this. Your only concern from the agent position is this. Will the agent generate a decent ROI to keep them coming back for more?
If I can make 5:1 at a minimum, I might be in. 8:1 almost guarantees I will.
$20 a lead sold to 10 agents is BS. There are vendors out there selling "exclusive" leads for that much.
Projecting a 3 yr income stream based on 1 sale, then factoring in referrals or multiple sales to one lead is a pipedream. Most agents will be lucky if they get 1 sale off 1 lead.
If you want to sell leads you need to work it from your side, not ours and then decide if it is worth it.
Most of the experienced guys here no longer buy leads, so your market will mostly be those starting out. They won't shell out $20 for a shared lead when they can get them for half that or better from other sources. If they do pay you that price, they won't be paying it for long.
If I can make 5:1 at a minimum, I might be in. 8:1 almost guarantees I will.
$20 a lead sold to 10 agents is BS. There are vendors out there selling "exclusive" leads for that much.
Projecting a 3 yr income stream based on 1 sale, then factoring in referrals or multiple sales to one lead is a pipedream. Most agents will be lucky if they get 1 sale off 1 lead.
If you want to sell leads you need to work it from your side, not ours and then decide if it is worth it.
Most of the experienced guys here no longer buy leads, so your market will mostly be those starting out. They won't shell out $20 for a shared lead when they can get them for half that or better from other sources. If they do pay you that price, they won't be paying it for long.
It's always good to see a old thread hijacked and resurrected 
Orlando - 10 agents a lead is unsustainable. 4 to 5 agents is reasonable. You will find it is very hard to make the numbers work for everyone, the PPC costs will kill you if you are not careful. The lack of agents buying them will kill you if you overprice them. I can buy health leads shared with 4-5 agents for under $10 easily. You would need a compelling story to make me pay anymore. Define quality.... how do you know your lead is better than the netquote lead or the vimo lead?
GAHealth - P&C chargebacks are not the same issue they are in health. That's why this type of system works out okay for P&C, but in the end, you do it for the second year commissions, you MIGHT break even the first year. I know, I've done these mailings. Of course, in P&C, the whole business is based on renewals, unlike life and health, where renewals are a sweetener, but not the real money.
Dan
Orlando - 10 agents a lead is unsustainable. 4 to 5 agents is reasonable. You will find it is very hard to make the numbers work for everyone, the PPC costs will kill you if you are not careful. The lack of agents buying them will kill you if you overprice them. I can buy health leads shared with 4-5 agents for under $10 easily. You would need a compelling story to make me pay anymore. Define quality.... how do you know your lead is better than the netquote lead or the vimo lead?
GAHealth - P&C chargebacks are not the same issue they are in health. That's why this type of system works out okay for P&C, but in the end, you do it for the second year commissions, you MIGHT break even the first year. I know, I've done these mailings. Of course, in P&C, the whole business is based on renewals, unlike life and health, where renewals are a sweetener, but not the real money.
Dan
OrlandoSEO
Expert
- 35
Thanks for the feedback guy's. So to recap the feedback:
5 agents, around $10/lead? lets us use homeowners insurance as an example.
The whole point of this service would be to find the happy median of our profitability and those buying the leads. I would like to see an agent's ROI at somewhere around 5.5:1 To do that with a group of agents is more of a trial and error working it our. Than anything else.
5 agents, around $10/lead? lets us use homeowners insurance as an example.
The whole point of this service would be to find the happy median of our profitability and those buying the leads. I would like to see an agent's ROI at somewhere around 5.5:1 To do that with a group of agents is more of a trial and error working it our. Than anything else.
