Shared Leads Vs. Exclusive Leads

[dadkins131]

Just wondering what the general opinion around here is on this topic. I currently use Sales Mogul for exclusive leads, and pay 29$ a piece for age 30 and up. I started out fast with them ( two huge policies that look like they wont close now) but now I am seeing less and less quality leads from them. In addition, my new sales rep there is a complete waste of air, and literally just ignores my calls and questions/emails. All of this has prompted me to look into other vendors, and I have a shared leads company that I just ordered some leads from.

Buying leads and converting them to premiums is my business model, and I am wondering what some realistic ROI's are that some people on this forum might be seeing.

I started this business full throttle on January 1st, and just really need some reassurance that I am not wasting my time with my business model. If so, I will be back in High tech software sales, working for the man again, and that is not appealing to me.

So far this year I have spent about $12,000 running my business, (most to lead costs). I have placed about 4,250 in annual premium so far this year, and have 30,000 in underwriting (2 large deals on the fringe account for 12,500 of that).... I also have about 6,000 in applications out.

I did start with an empty hopper this year, but I am wondering if these numbers are any good, considering the fact that I am only closing about 2-3 deals per week lately, out of 30 exclusive leads. I just don't see much more of an opportunity to close more to be honest.... I may have missed an immediate close here and there because of my inexperience, but I can't see it being much more than that. I have been in sales 10 years now, and have always been very successful, and I know that the weakest link in my business model will always be the leads.

My comp plan will bring me an average of 90% against my annual premium. Any insight would be greatly appreciated, and any one who currently works only on leads, or mostly on leads, I would really like to know what you do to be successful.

 

[djs]

I don't do life leads, so I can't give you much advice on the ROI of them.

If I'm adding your numbers up correctly, it looks like you'll about break even, maybe a bit better, on the first few months. That is probably better than average.

Closing 1 in 10 for internet leads is a decent ratio, ESPECIALLY for life leads. 1 in 15 isn't bad starting out.

Now, my advice:

30 a week is a bit to many. I would slow down to 15, until you get a real groove going. You'll probably find that you'll make more money (partly because you are spending less). You need time to figure out leads, work on filters, what lead sources work, what external factors are distractions, developing a decent followup program, etc.

Remember, as you accumulate leads, you want to market to them and nurture them. Quick closes happen, but, you'll get more over time. People tend to get some info, then step back and appear to go away. Then, out of the blue, they will re-emerge. You need to be there when that happens.

Have no loyalty to a lead vendor. Change quickly if the lead quality changes. Of course, don't always blame the vendor. For instance, spring break can impact leads, both volume and quantity. You will start to see these trends over time. Sometimes, they can improve, sometimes they don't.

Make sure you followup in a timely manner on every lead.

Dan

 

[INS_MAN]

Leads are a hit and miss regardless. Your absolute best possible lead is a referral. When you write an app get referrals. Not just one or two but 5-10 if not more. If you are doing your job right then you are helping your client and they will not mind letting you help their friends and family. Do not leave the house without them. It won't take long and you will not have to buy a lead again.

 

[BNTRS]

You're paying 29 bucks to be sent the intake form for anyone who wants to go to a web site and fill out a form "requesting" information about life insurance.

Here's a piece of advice I've heard a thousand times and will likely utter a few thousand times more in my life time regarding this topic. Life insurance isn't bought, it's sold. Like it or not, matching up people who want to buy with people like you is a very tough and expensive job. There are better, more direct ways to generate new business.

 

[ksigmtsu]

Life and Annunity leads from internet vendors average an awful closing ratio. I buy tons and tons of internet leads. I have a higher closing ratio on selling life policies to medicare leads than I have selling life policies to a life lead.

Simple reason, the medicare leads already trust me because of how I handled their medicare insurance. The life lead has no idea who they can trust and they are going to get called by a call center selling them a POS graded life policy of some sort that is going to cost 9000 a month in premium at age 80.

Don't buy shared direct mail leads either. If you wanna buy life leads, buy your own mail drops of FE paper leads, and shoot them into zip codes with a 35,000+ average tax return, or 25% or higher over 65 population only. You'll average around the same cost you're averaging now with more serious buyers.

Buy a business card size ad in the local paper next to the obituaries. (yes I know it sounds dirty) I've been trying to sponsor a voice ad on the phone line people call in to get the obituaries as well.

I thought once about handing out flyers at the funeral home but I figured that was crossing the line.

 

[ACA ALL THE WAY]

My business is probably comprised of 90% bought leads and 10% referrals from those bought leads. My business is conducted face-to-face and my leads are exclusive. I am in a LARGE metro area and my lead source is as great as I've seen out there in my SHORT 5 year career and leads are plentiful. I'm not a number crunching nerd so I couldn't tell you what my usual ROI over my career like most probably can, but I can tell you I have been very profitable. I try and concentrate on selling as many of those leads as I can and I KNOW the rest will take care of itself.

For instance, this past week I received about 15 leads and had 7 appt (some of these appt were made from last weeks leads as there will be a back-log to work from those that don't answer the first few times you call). I had 5 sales (2 UL's and 3 terms) totalling almost 10K in annual premium. On average, I expect about 7K of the 10K to eventually get paid...

I will have some carry over from a few of those 15 leads that I haven't gotten a hold of that I WILL sell next week and the routine continues. Also keep in mind, some of these clients might not qualify and even if they do they still might not want the policy even after it's all set and done if the price comes back way higher than expected.

For me this is a numbers game. I KNOW I can sell all day long if you put me in front of people. So the KEY INGREDIENT for my business is getting my hands on SOLID EXCLUSIVE leads in my area and the rest is CAKE!

P.S. I work mortgage leads that clients have personally hand-written their personal info on (name, DOB, phone number and sometimes their e-mail, mortgage amount and best time to call) and all I do is call them to set the appt. in response to their inquiry. I do BOTH non-med and fully underwritten products... These leads cost in the ball park of $20-30 each

 

[BNTRS]

I thought once about handing out flyers at the funeral home but I figured that was crossing the line.

Nah people love that, and best to get them when you have their attention

 

[dadkins131]

Life and Annunity leads from internet vendors average an awful closing ratio. I buy tons and tons of internet leads. I have a higher closing ratio on selling life policies to medicare leads than I have selling life policies to a life lead.

Simple reason, the medicare leads already trust me because of how I handled their medicare insurance. The life lead has no idea who they can trust and they are going to get called by a call center selling them a POS graded life policy of some sort that is going to cost 9000 a month in premium at age 80.

Don't buy shared direct mail leads either. If you wanna buy life leads, buy your own mail drops of FE paper leads, and shoot them into zip codes with a 35,000+ average tax return, or 25% or higher over 65 population only. You'll average around the same cost you're averaging now with more serious buyers.

Buy a business card size ad in the local paper next to the obituaries. (yes I know it sounds dirty) I've been trying to sponsor a voice ad on the phone line people call in to get the obituaries as well.

I thought once about handing out flyers at the funeral home but I figured that was crossing the line.

I would think that I would have more success with people who actually took the initiative to look into insurance prices, instead of people who are getting bombarded with mail pieces every week.

I would figure that direct mail leads are locked down by face to face agents, no?
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Back to the main topic though, does any one have opinions on using shared vs exclusive leads?

 

[scotte]

Doesn't mail work for FE only? Not term policies

 

[Mark]

Shared Leads Vs. Exclusive Leads

I've always looked at it like going on a date with a hot chick.
Do you want to be the only guy on the date with her,,or go with 5 other guys? I want it to be either me or nothing. 5 other guys makes it a lot harder.

You might not be the best, or the first one to call her. The client might get mad that so many agents is calling them. THey just wanted a quick quote from someone. Not all this crap.

Just some food for thought.