We’ve been providing every agent a summary of our Lead Programs implemented for 2013, and how well they have worked for agents across the country. Here’s a great story about an agent who wasn’t taking advantage of our lead program, and how he wished he started earlier.
Meet Seth. He’s been a high producing agent in the senior market for a while, and has generated most of his business through referrals from his brother’s P&C agency. He never really spent a lot of money on leads, mostly because he felt they were a waste of his money. Seth is also a savvy investor, and felt that he wasn’t going to get a good return on his dollars by investing in leads.
His model changed, however, when his brother sold his P&C agency last year. With his easy referral stream eliminated, Seth decided that he had to buy leads just to keep himself in front of new prospects. So he contacted one of the preferred lead vendors on our website, and began a direct mail prospecting program.
When one of our marketers connected with Seth, he was about 3 months into his direct mail program. He had sent out 3,000 pieces of mail, and felt that he had done fairly well. After Seth started sharing some information about his results, we concluded his Return on Investment (RoI) was incredibly high.
|
Cost per 1000 |
Pieces Mailed |
Agent Cost |
Leads |
Sales Made |
Commission |
Net Gain |
RoI |
|
$458.00 |
1000 |
$458.00 |
14 |
6 |
$2,312.80 |
$1,854.80 |
404.98% |
|
$458.00 |
2000 |
$916.00 |
28 |
11 |
$4,625.60 |
$3,709.60 |
404.98% |
|
$458.00 |
3000 |
$1,374.00 |
42 |
17 |
$6,938.40 |
$5,564.40 |
404.98% |
When we reviewed Seth’s results, we found that while he was getting a slightly lower than average return (1.4%). However, he was closing at a higher than average rate (40%). His efforts were resulting in a RoI of over 400% of what he invested into the leads. After Seth realized this, he was suddenly a big believer!
We also told Seth that had he known about our Turning 65 Lead Program, he would have experienced an even higher RoI than he realized on his previous mailings. Here’s what one of our marketers shared with him:
|
Cost per 1000 |
Pieces Mailed |
Agent Cost |
Leads |
Sales Made |
Commission |
Net Gain |
RoI |
|
$458.00 |
1000 |
$458.00 |
14 |
6 |
$2,312.80 |
$1,854.80 |
404.98% |
|
$50.00 |
2000 |
$508.00 |
28 |
11 |
$4,625.60 |
$3,709.60 |
810.55% |
|
$50.00 |
3000 |
$558.00 |
42 |
17 |
$6,938.40 |
$5,564.40 |
1143.44 |
This breakdown simply explained to Seth that by participating in our Turning 65 Lead Program, he would have been able to get his 2nd and 3rd mailings for $50 per thousand. That would have given him a total RoI of over 1000% on his first 3 lead orders! By comparison, Seth shared with us that the best stock in his portfolio last year – US Airways – had a RoI of 150% over the entire year.
At Neishloss & Fleming, we invest in the success of our agents. Begin investing in yourself, and you’ll achieve a high rate of return as well.
That’s impressive net gain!
You get out what you put in! Our agents work very hard at what they do and it feels great to know we have a program that will boost all of their hard work and efforts for that extra edge. Great story Jill!