Based on a few of the FE IMO training programs I've seen, and seeing videos and posts on it for new agents, I'm just curious as to why 20 leads a week for new agents is the general rule? I went out with my old mentor and knocked 10 in a day and had hours of light to spare. Why not 10-15 a day or like 40-50 a week? Are leads that scarce or what? I mean I'd be willing to drive to wherever the leads are every day however many days possible without having to go back and do paperwork and whatever else. That's what I would like to do when I get started doing this, of course I'm expecting days where I do nothing but train and study as well. But is that a reality or what?
Why 20 a week?
- Thread starter Valetic
- Start date
- 1,410
Three reasons.
1. Most agents can't afford more than 20
2. Most agents only work part time hours so they would never fully work more than 20 leads
3. It's very hard, & in most territories, impossible to get more than 20 leads in a small area. I bought 35 direct mail leads week for almost a year and had a territory of over 1.5 hours in drive time from one side to the other. This makes it hard to maximize your marketing dollars when you're spending hours and hours a day driving in between doors.
These reasons are why agents are starting to catch the title wave of telesales. Your marketing territory is unlimited & you're able to spend a lot more of your time actually talking to people.
I hope that helps!
1. Most agents can't afford more than 20
2. Most agents only work part time hours so they would never fully work more than 20 leads
3. It's very hard, & in most territories, impossible to get more than 20 leads in a small area. I bought 35 direct mail leads week for almost a year and had a territory of over 1.5 hours in drive time from one side to the other. This makes it hard to maximize your marketing dollars when you're spending hours and hours a day driving in between doors.
These reasons are why agents are starting to catch the title wave of telesales. Your marketing territory is unlimited & you're able to spend a lot more of your time actually talking to people.
I hope that helps!
- Thread starter
- #3
Yes it does. I've also seen the lead territories in one company I was with, one county has 60, another 30, then 20, 10, 8, 5, 1, 1. But maybe 15 a day for example? Maybe all around the same proximities? And if one has 20 go there the next day, so on and so forth, maybe catching back up with leads you missed the next week or on a free day?
- 1,410
I hear you, but it's not that simple. Most people won't be home or won't answer the door so you have to knock each one at least 5-10 times otherwise you'll be wasting a lot of leads. That makes for a lot of back and forth in between areas. Which makes a ton of wasted time!
It's just much easier logistically for agents to work 20 leads a week
- 1,410
I will also add I personally made the biggest profit margins ( speaking of while I was in the field) when I was working 20 leads per week. I made more money working 35 leads but I had to cherry pick more and thus waste a lot more leads so the profit margins were slimmer. The difference in working 20 vs 35 leads a week is night & day. It's an entirely different ball game!
- Thread starter
- #6
Is that over the course of a 5 day work week?
UKTX
Super Genius
- 203
Most agents can't stomach paying for 40 DM leads a week.
At an average of $30 a lead that would mean committing 2-4k before you have even sat in front of anyone.
Another thing is that the DM lead quality has reduced over the last few years (IMO). A lot of the fixed price DM pieces now use questionable wording to generate the lead. Having a new agent put all their beans in this method is a sure way to failure.
Multiple streams of leads are essential now for any agent.
At an average of $30 a lead that would mean committing 2-4k before you have even sat in front of anyone.
Another thing is that the DM lead quality has reduced over the last few years (IMO). A lot of the fixed price DM pieces now use questionable wording to generate the lead. Having a new agent put all their beans in this method is a sure way to failure.
Multiple streams of leads are essential now for any agent.
- 17,208
$30 X 40= 2-4K ??? Really? I would love to be your lead vendor. Lol I wouldn't even care if you ever sold any insurance. (Hint $30 x 40 = exactly $1,200) no vagueness or guesswork to it.
I assume the OP is discussing new direct mail leads. Not old B leads. Not previously worked leads. And not telemarketer leads or Facebook leads. Because you would need more of those for the same results.
Here is our reality at FexContracting. 15 to 20 direct mail leads is the number that most new agents start with. You want to make sure you are able to consistently write $3000 to $4000 every week consistently off of those before you get more. You don't want to flood yourself in lead cost before you are selling well. And 20 good leads should be keeping most agents busy all week with 3-field days. The leads cost $450 if 15 or $600 if 20. So if you are writing $3000 off 15 or &4000 off 20 you are profitable. If you are writing much less than that you need to refine what you are doing. Buying more leads might not help you. And could even make you less profitable.
Once you are consistently doing the right numbers many agents bump up to 25. I have just a few that go to 30. And one single agent that works 35 to 40 leads weekly.
This is the number of leads and the number of days in the field (2 to 3) that agents like to work long term. Year after year. And make a great living. Yes you could take more leads and spend 5 or 6 days in the field. But you would burn out after a year or two. FE is a very pleasant and profitable way to make a living if you do it correctly. And burning yourself out is not the best way to go.
As far as other opinions you are getting, my data doesn't agree. I wonder if they have really personally managed leads for successful agents year after year or if they are going by assumptions and forum talk.
Such as:
1. Agents not being able to afford more than 20 leads? Obviously not true at all for agents that are selling well with their 20. For new agents starting out it's often true that they need to start slow and build up. But even if they start as millionaires I don't recommend they start with more than 20.
2. Agents only work "part-time" hours? No. Agents work long and hard. Many people confuse hours in the field as the only hours they work.
3. Can't get the leads? There are very few areas where an agent can't get all the leads he wants to work. Taking fewer leads is almost always the agent's choice. Not a limitation of the lead vendor. If your agency is stacking agents on top of other agents and then coming up short that is the problem. But if they are carving out an area for you when they take you on that will support the leads you want, you should not have any problem.
Hope this info helps. This is realistic stuff. Not guesswork. New agents should do exactly what the successful agents at your agency are doing. Don't try to re-invent the wheel. Once you are running at their level if you want to ramp it up and outwork all of them, no one will complain. But creating a lifestyle that you enjoy and can live with for years is preferable to tremendous numbers for a year or two and then burn out. Think about diet plans, exercise plans, etc. people who go too radical too fast don't stay with that long term. Because they created a lifestyle they don't enjoy.
UKTX
Super Genius
- 203
I was assuming the agent wouldn't want a gap in receiving leads.......that's why its 2-4k.
He would have to mail out every week to get those sorts of lead numbers.
He would have to mail out every week to get those sorts of lead numbers.
- Thread starter
- #10
I understand what you mean Newby but I got debts to pay off
I'm just trying to make it in the business first of all so I'll listen to whatever works. I was just wondering about if I can start working my butt off and producing bigger numbers every week til I'm comfortable slowing down. But if y'all say 20 a week, 20 it is. I don't want 2 or 3 days though, I want 5-7 til I get this stuff down.
I guess that would involve buying filler leads too then?
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