I'm biased because I've had success both selling leads generated using telemarketers and selling those services to other agents. It's great for agents in the right markets who have some money to spend on marketing, want quick results, and don't want to call hundreds of people each day. Personally I would avoid paying on a per lead basis because I think it encourages sloppy behavior, but most agents aren't comfortable paying for a telemarketer without guaranteed results. I had an agent pay to have telemarketing done and she was upset because she wasn't happy with the results, but that's just the way marketing goes. For example, one of the leads she got was someone who already had a policy and wanted to know if he could get a better deal. Is that the best lead in the market? No, but whether you're telemarketing, doing direct mail, or any other type of marketing you wont always get outstanding results. The best part is that I agreed to do a trial run with her at cost and when she didn't get enough leads or like the quality she went back to her credit card company and complained about it. She then got a refund because American Express will almost 100% of the time chargeback the merchant if there is an online purchase from paypal and the customer is upset about it. I learned three things from that experience. First, never ever ever take another payment through paypal with an American Express card. The second, maybe I want to get an American Express card myself if the protection for the consumer is so good they can steal money back from the merchant when the merchant did exactly what they agreed to do. The third thing I learned was that so long as I'm working I never want to do business with or give a contract to Kayce Layne.
Chris Westfall (Daytona_guy,
FinalExpenseByPhone.com - Final Expense Agents) had referred Kayce to me, but I don't fault him any for that. When my callers got a HORRIBLE response rate in the area we were calling for him we ended the campaign early and he took a partial refund and called it good. I respect him for that, but as far as I'm concerned Kayce Layne is a thief.
Moral of the story: If you're looking to get leads from a telemarketing company, have the right expectations and know that it's not always an effective marketing tool in every area.
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