This lead program I'm in is through Assurant called LEGS. I receive shared leads in real time and the leads are managed through my agent site. I can sell any company I want and it's $8 a pop but when I sell Assurant they give me free leads. So as long as I'm always selling a portion of Assurant basically the leads are free.
Since I abhor shared leads so much and my income is from local small biz owners I only called each lead twice - once with a message, one other time and shot out one email. That's it - never contacted them again. If someone really dug in they probably would have squeezed out a few more.
So here are my stats - 102 leads received, 4 closed for Assurant. I also did some state deals - really don't want to count those.
Now - we have two camps. One camp would say that's fine - 1 out of 25 and I'm making a profit. Even if I paid for them at $8 a pop X 102 = $816 and I probably averaged $650 commish X 4 deals = $2,600 - $816 = $1,784.
Then there's my camp and hopefully this post accentuates the problem most agents have with shared leads - volume. I like to close 4 to 6 deals per week - 4 minimum. That means I'd need 100 leads a week.
Raise your hand if you're getting 100 leads a week. Ok - now we know why most agents can't make a great living on these things - you need an insane amount per week. And even if you got 100 a week you're still only netting $1,700 or so after expenses and with $800 a week in expenses most agents don't have the cash to pay for 100 leads a week for 4 to 6 weeks before steady commissions start coming in.
Heaven forbid you're going as-earned. 4 to 5 deals a week off shared leads? Ok, $800 a week in lead costs X 6 months = ....well you only need around 20K. And now we start to see why we have such an incredibally high failure rate on shared leads.
Most agents I know are lucky to get 20 a week. I don't know many getting 30 or 40 but even if you are that's still only 1 to 3 deals per week - after leads expenses = squat. That's also assuming a 100% placement - which most agents don't have.
Summary? They are not bad as a small supplement to other marketing activities. In fact, I have a 54 lead credit so as long as I keep selling and they keep giving me free leads then why sould I cancel the program. Just note that those 4 deals and 100 leads are spread out over a 5 week period of time. So unless I think I can live off 4 deals in 5 weeks I'd better have some other lead sources.
Since I abhor shared leads so much and my income is from local small biz owners I only called each lead twice - once with a message, one other time and shot out one email. That's it - never contacted them again. If someone really dug in they probably would have squeezed out a few more.
So here are my stats - 102 leads received, 4 closed for Assurant. I also did some state deals - really don't want to count those.
Now - we have two camps. One camp would say that's fine - 1 out of 25 and I'm making a profit. Even if I paid for them at $8 a pop X 102 = $816 and I probably averaged $650 commish X 4 deals = $2,600 - $816 = $1,784.
Then there's my camp and hopefully this post accentuates the problem most agents have with shared leads - volume. I like to close 4 to 6 deals per week - 4 minimum. That means I'd need 100 leads a week.
Raise your hand if you're getting 100 leads a week. Ok - now we know why most agents can't make a great living on these things - you need an insane amount per week. And even if you got 100 a week you're still only netting $1,700 or so after expenses and with $800 a week in expenses most agents don't have the cash to pay for 100 leads a week for 4 to 6 weeks before steady commissions start coming in.
Heaven forbid you're going as-earned. 4 to 5 deals a week off shared leads? Ok, $800 a week in lead costs X 6 months = ....well you only need around 20K. And now we start to see why we have such an incredibally high failure rate on shared leads.
Most agents I know are lucky to get 20 a week. I don't know many getting 30 or 40 but even if you are that's still only 1 to 3 deals per week - after leads expenses = squat. That's also assuming a 100% placement - which most agents don't have.
Summary? They are not bad as a small supplement to other marketing activities. In fact, I have a 54 lead credit so as long as I keep selling and they keep giving me free leads then why sould I cancel the program. Just note that those 4 deals and 100 leads are spread out over a 5 week period of time. So unless I think I can live off 4 deals in 5 weeks I'd better have some other lead sources.
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