How Many Prospects Do You Waste a Given Month?

[VolAgent]

If these numbers are correct, it seems like you should buy 400 leads. If I could turn $4000 into $8000 of first year revenue, I'd spend more money and forget about the cost. Work on retention programs and you'll be rich soon enough.

That is my thought. Perhaps my numbers are wrong, but if they aren't then I'd just keep on keeping on. Also, I believe Todd is in Florida where premiums are high and so his revenue is probably even higher. As long as he can retain a decent amount of this business, it is going to snowball on him.

 

[djs]

Here is the problem with defining closing ratios.... your marketing method defines your closing ratio. 30% on internet leads would be phenomenal, 30% on referred leads would be a disaster. If its purchased leads / telemarketed leads, then 30% is probably pretty decent.

Of course, the better you define your target client, the better your closing ratio will be.

As far as the rest goes, assuming a 25% close ratio on 200 leads, gives you 50 closed households a month. I don't know what your average household commission is, but if its even as low as $150, that would be $7500 in commissions on a $4000 spend. Thats a decent (actually a very good) return on your investment. Even assuming a 20% rolloff during the first year, you would be at $6000 on a $4000 investment.

Yeah, always good to do better, but that is doing well. Second year with renewals, you'll be doing much better even.

Dan

 

[todd02]

Here is the problem with defining closing ratios.... your marketing method defines your closing ratio. 30% on internet leads would be phenomenal, 30% on referred leads would be a disaster. If its purchased leads / telemarketed leads, then 30% is probably pretty decent.

Of course, the better you define your target client, the better your closing ratio will be.

As far as the rest goes, assuming a 25% close ratio on 200 leads, gives you 50 closed households a month. I don't know what your average household commission is, but if its even as low as $150, that would be $7500 in commissions on a $4000 spend. Thats a decent (actually a very good) return on your investment. Even assuming a 20% rolloff during the first year, you would be at $6000 on a $4000 investment.

Yeah, always good to do better, but that is doing well. Second year with renewals, you'll be doing much better even.

Dan

About a 200% return is my agencies average.. Still we have in any given month 50-100 exclusive leads that we can't win due on price alone.

I'm shocked other captives don't think selling their leads, with client approval (patriot act also followed) and then recouping money to buy other targeted leads isn't a great idea.

I guess everyone wait for it. Hopefully will have this market place in 12-24 months. It's going to be a monster to build.

I'm based out of Texas

 

[bobson]

About a 200% return is my agencies average.. Still we have in any given month 50-100 exclusive leads that we can't win due on price alone.

I'm shocked other captives don't think selling their leads, with client approval (patriot act also followed) and then recouping money to buy other targeted leads isn't a great idea.

I guess everyone wait for it. Hopefully will have this market place in 12-24 months. It's going to be a monster to build.

I'm based out of Texas

Why waste the time? The payoff of writing insurance business is way more than you will make trying to sell leads. Put 50% of your insurance revenue back into buying more leads.

 

[VolAgent]

About a 200% return is my agencies average.. Still we have in any given month 50-100 exclusive leads that we can't win due on price alone.

I'm shocked other captives don't think selling their leads, with client approval (patriot act also followed) and then recouping money to buy other targeted leads isn't a great idea.

I guess everyone wait for it. Hopefully will have this market place in 12-24 months. It's going to be a monster to build.

I'm based out of Texas

I would love to know how many give you permission to share their information with other agents.

I'm with Bobson on this. This is simply penny wise, pound foolish behavior. Your time have value too. Also, why aren't you revisiting these leads 6 months or a year later? Things will change and now maybe your company is a good fit for them.