|
HOME
|
|
Cold Prospecting vs. Purchasing Leads Scenario
|
From our experience, the most successful life agents are those that strictly work off of leads. That's a pretty bold statement, but it's true! We even work with some agents that don't inventory leads. If the prospect's not interested in making a purchase right away, they throw the lead away! They only want to spend their time talking to hot prospects; people that are interested now! In order to do that, they must have a high quality source of leads, otherwise that would get pretty expensive, quickly!
|
IF YOU ALREADY UNDERSTAND THE IMPORTANCE OF BUYING LEADS AS COMPARED TO FINDING THEM YOURSELF,
CLICK HERE TO GO DIRECTLY TO OUR LEADS REQUEST FORM, OTHERWISE PLEASE READ THE VALUABLE INFO BELOW.
|
The comparison is the agent spending x number of hours prospecting to find a warm body. Then they spend more hours to cultivate that prospect.
An exercise for the junior representative: A good exercise is to figure out how much time you're spending trying to find people that are interested. If you're making 100 phone calls, to find 2 that would be interested in the next few months, that costs a certain dollar amount based on your rate per hour.
|
Finding Leads Yourself Method
|
| NOTE:
This example below is for illustration purposes only. Your experiences may be different. We cannot guarantee closing ratios. |
|
Number of Cold Calls to make find 20 prospects
|
360 |
|
Number of prospects to make a sale
|
20 |
|
Hours to make 360 phone calls @12 calls per hour.
|
30
|
|
Closes assuming Closing ratio 25%
|
5 sales
|
|
Commission: @ $500 per sale
|
$2,500.00
|
|
Cost per lead: only your time
|
$0.00
|
| Profit |
$2,500.00 |
|
Your hourly rate: ($2,500 / 30 hours)
|
$83.00 / hr |
Purchasing Leads Method
(Assuming you purchased 20 leads.) |
| Number of Cold Calls to find 20 prospects |
0 |
| Hours to find your 20 prospects |
0 |
| Time to call your 20 hot leads |
3 hours |
| Closes assuming Closing ratio 25% |
5 sales |
| Commission: @ $500 per sale |
$2,500 |
| Cost per lead: |
$400.00 |
| Profit |
$2,100.00 |
|
Your hourly rate: ($2,500 / 1.7 hours)
|
$833.00/ hr
|
| |
| Repeated: The above example is for illustration purposes only. Your experiences may be different. We cannot guarantee closing ratios. |
Benefits of purchased leads stated Here:
You're going to make more sales because you're only
talking to interested people.
Your confidence will stay high as you would not be worn down from the other 340 cold prospects saying no to you.
You just saved yourself 28.3 hours to do more prospecting, following up old leads, playing golf, or whatever the situation is.
You don't have to keep coming up with 360 cold prospects per week.
Just a final thought.
With relation to cold calling example above: If you purchased 360 leads to call and sell, you would get bogged down with the amount of business you'd have to
write. You wouldn't even get close to the end of the list of prospects. Why would you want to cold call?
|
|
|
|
AGENTS AREA
INSURANCE LEADS
STAY IN TOUCH