Thinking of Starting a Lead Company

[jodphd]

Now before when I sold, I hated leads, the cost of them, never having enough, and now that I am back in the business I am feeling the same way. Before I started my own direct marketing campagne so save money on leads. I was thinking about doing that again since it didnt work out that bad, but then I started thinking that everybody hates leads and has horror stories about their companies they get leads from.
So I was thinking, im an honest guy, I wouldnt do these people wrong like these companies seem to always do, why cant I generate leads on a larger scale and sell them at a fair price, and if I do people right they will do me right by purchasing more and more. So in my mind it loos like a win win for everybody if I could do this.
So here is the problem, im not sure how to do it on a large scale at a cost efficient way.
I was thinking using a direct mailer company to generate the leads based on what people want, then process them from there. Im not sure if thats how this works though.
This is just a thought that has the gears turning a little bit so if anybody has any suggestions then please and thank you
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Let me expand on this by asking, what would you like in a lead company. What problems do you have with your current company that you would want to see different in a new start up company if you were going to consider it. My gears are turning on this today so any thought you can give me would be more then appreciated.
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Again another question. Would people like to order say, 1000 direct letters sent to a targeted demographic with either a template or their own wording for a flat rate and all the leads generated from that be their own "exclusive leads"? The leads could either be scanned and emailed to the agent or have their address on it so that it came straight to them which ensures the exclusivness of the lead and the knowledge that it is a TRUE hot lead.

The solution is to implement a system that is a combination of SEO and social media and leads the prospect to a unique sales funnel that is not just a form. This leads to highly targeted, highly convertible leads that the leads seller can make a nice ROI and the agent can buy at a reasonable price with a low CPA.

Contact me to learn more. Anyone thinking os starting a lead generation company or wishing to make their existing company more efficient---please get in touch.

 

[hiswill1133]

I would love to find a real good lead company.

 

[CHUMPS FROM OXFORD]

I think the next few comments will be quite interesting.

 

[GreenSky]

I think the next few comments will be quite interesting.

The Chargers are looking like a team that wants to get into the playoffs.

Rick

 

[CHUMPS FROM OXFORD]

Yes they are. Most lead companies are terrible. Manning was eaten alive although his team is decimated with injuries. But there are a few that will provide you decent ROI if you stick to a small radius.

 

[jodphd]

My response to user jaugusta and dfrench in particular is that starting your own lead company is a great way to go---if it is done effectively.

Dfrench seems to have done it by using SEO. I feel the better method is to combine SEO with social media and by an expeditious use of interactive video you can get the customers excited about giving you their information. The new Facebook rules allow campaigns to be conducted there that could not have been done previously.

The combination of strategies along with the use of a unique sales funnel allows great lead generating systems to be built that have a cost of $5-$10 per lead that can be marked up and sold giving the lead company owner a great ROI and the agents a very highly targeted, highly convertible lead at a low cost.

For more ideas, please contact me outside of this forum.

 

[Mark]

I just had me a fast money making idea. I'm going to buy some cheap aged leads and resell them to new agents. Up to 10 agents and called them Shared Leads for like $10 each. SO I would make $100 bucks per aged lead I bought for under 1 buck.

I will make me a cheap website and not put any of my real info on it like phone number or address.

I won't accept credit cards... I can call myself something good like the best leads.com or something ....

I can even come up with some fake names that can talk good about me on my website..


And,,I will even put in some randon people from the phonebook, to save me some money...

and when the agent figures out my company sucks,,I will just change the name...

 

[dyadvisor]

The main problem seems to be in determining a "lead"

This starts with determining the difference between a true prospect and a suspect.

The leads I used to work were of prospects. It seems today many agents are buying "suspect leads" and trying to actually think there are prospects.

(1) If I bought a list of those over 65, with homes, no children at home, and living in a zip code of $50,000 income owners, would these be senior suspects or prospects?

(2) if I receive 5 people wanting insurance quotes, are they suspects or prospects

(3) If someone on the internet reads my product information on the internet, and then contacts me, is that a suspect or prospect?

You need to know the quality difference between these examples, or your closing ratio will always be far too low.
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[jellybean162]

I just have to join in on this, and not to advertise myself either. If you want to have a lead company, you have to figure out what KIND of lead you want to offer. Are you going to offer internet generated? Television/Radio generated? Direct mail generated? Telemarketing generated?

There are several TYPES of lead companies out there. Then, you have the lead companies, which truely there are very FEW lead "companies", most are what I call lead "brokers". Lead brokers are companies that resell the leads over and over again. Lead brokers typically get their information electronically, or they use someone like me to gather their data.

Here's a little background on me.
I have a lead company. Actually, more closely defined, it's a court research company. We provide leads. I got involved with collecting leads for NAA at the courthouse. NAA then sent out letters, and took over the process once I started. I then later started my own company, and I sold to agents directly, and I even mail merged their letters for them for direct mail marketing.

Direct mail marketing works. The WORST type of lead you can get is a internet generated lead. These are terrible. I've tried them for myself, and I also was signed up with a couple companies to "sell" for them, but I did a test run of their leads with someone in the business it was being marketed before actually offering it. 100% out of 100% internet leads were crap. You get this fabricated junk, and then if you DO get someone, they don't remember filling it out, or have been contacted so many times, you'd think you were talking to a truck driver on the telephone.

My parents bought the lead company from me. I still sell for them, but they operate it now. There are costs involved with having a lead company. You have to figure out your balance. You have the cost of acquiring the data, advertising & promoting, YOUR cost of running the business (After all, you want to be paid too). It's simple to just ask people what they would pay for a lead, but ppl that buy leads don't always know what's actually involved. Most people do want the cheapest as possible.

Here's an example. Someone comes to me wanting 1,000 leads for mortgage protection (Which people also use for TL insurance as well). I tell them the leads are 35 cents each, not resold, exclusive, and the records are less than 1 week old.

Sure, sounds like a good price, then you go research a "lead broker" site. The leads are two-three weeks old, and they're being sold for 10 cents. Suddenly, 35 cents sounds like a rip-off. In reality, it's not, (I'm not going to get into that because then that would turn this into a sales pitch, and that's not the point of my response). What the lead broker doesn't tell you is that it's being resold 10 times, and by the time it's 3 weeks old, every "lead broker" in the country has the same exact lead that they are selling.

Leads have to be "fresh" in order to have any value to them at all. So, getting the data is going to be more expensive.

Radio and television costs are high, but if you can justify it with a high number of orders, then it pays for itself. There are newspaper ads, but in today's world, who knows.

It's so much more complex. If you really want to pursue trying to start a lead company (Which I would NOT recommend), the first thing you need to do is work on getting leads for yourself first, and work those for a while. Figure out the best way that works for you. Then you can get a idea of a good cost and things that are involved.

Now my back story, I'm coming from providing the leads..but I absolutely love to sell. In dealing with insurance agents and talking about life insurance, I wanted to get involved, so I got my insurance license and I'm gonna sell insurance myself. Already having the foreknowledge of getting leads, I'm definately going to use that to my advantage. After I learn what the heck I'm doing on the insurance side, I'd love to grow a small agency, assisting them with getting leads the same way. Getting your own leads is the one way you can guarentee the lead is going to be exclusive.

It all falls to my motto that I've used in the lead business for years..A resold lead is a worthless lead. Hopefully that can shed some light into what you are thinking about venturing into.

If you have any questions, feel free to shoot me an e-mail. Perhaps we can work something out that would be beneficial for both of us. After all, sharing of knowledge can't hurt.

 

[dyadvisor]

Getting into the sale of agent leads produced by direct mail is risky business. Let's say you have knowledge of producing leads, where the client actual wants more than information, and lists their present insurer. How fair are you going to be? Having way back experience in this area, I will tell you it is not easy.

If you are making an override that will average $100.00 per sale, you might produce the leads at cost. --probably $35.00 or less--

To make a profit you would have to sell the lead for $60.00 Other than annuity buyers who will pay up to $85.00 you will be out of luck. That is a thin profit, and a tough sale.

Let's say the leads are for Seniors, and the person marks they had AARP coverage. You should personally work that 95% sure sale. The other leads sell cheap.

When I had a direct mail lead system, those done for myself, I only worked 50% of the leads. (check the indicators on the card). Then I gave the others to producers under my IMO contract.

The lead sharks on the internet may pay $6 to get a quote request from an affiliate. Now a quote is not a lead, but a request. Yet a minimum of $100 profit is often made. How can you compete?

Plus I can teach a website owner how to spend maybe $600.00 initially and possibly get up to 300 to 600 leads. These are direct to the website for just the first year and more throughout the next 4 years.

With my internet experience, 14 years ago I started building an internet lead system that has led to making millions for a tight internet niche business that continues to turn profits.

I do NOT want to discourage you. However, to make a stand alone money making business off direct mail leads by themselves will not turn enough profit. The future is the internet, and not internet quotes either. You are just 15 years too late.