The Real Cost Of Insurance Sales

For agents new and old, the most important thing that I’ve explained to countless agents over the years is that the actual cost per lead is essentially irrelevant. The only number that should truly matter to every agent is your actual COST per SALE. How much money do you need to spend to write a piece of business?

I know this page is a bit long but it’s really important for every agent to understand. Leads are never created equal, your actual cost per sale is the only way to measure the success of any campaign. Let’s start with Direct Mail.

The Real Cost Of Direct Mail

The average direct mail cost is $450 for 1000 pieces of mail sent.

These days, for the absolute best case, you’ll have 20 cards returned which makes the leads cost $22.50 each.

With that said, you will have a few come back incomplete or with wrong information. You’re most likely now looking at 15 good leads which will bring the lead cost to $30 each.

If you don’t know this already, all direct mail final expense cards are misleading, they usually talk about State Approved or State Regulated Benefits that pay for funeral costs so the majority of people requesting this info don’t know it’s insurance and/or they think its free.

So from those mailers that you paid for weeks ago and have waited and waited for them to come back, you’ll work really hard to convince hopefully 1 or 2 people that they need and can afford this insurance.

All said and done you’ll end up with a cost per sale of $450 (1 sale) or $225 (2 sales). If you get lucky and land a third sale, you’ll have a cost per sale of $150. Remember these numbers.

 

 

Your agents will then be able to generate their own leads to meet their unique needs. They can choose their own demographics, geography and even the questions the consumers are answering on the lead forms. They can then control the quanity of leads they are generating, so if they are working part time and selling locally or are full-time and selling over the phone, they can all get the volume they need.

After continued requests and to meet the demand of growing agencies, I have now added agency/bulk pricing options for my lead system packages. If you are looking to outfit your entire team or agency with the ability to generate their own custom leads, I will be offering a discount for bulk orders of 5 or more lead systems at a time.

Please contact me directly and let me know which packages you would like and the total quantity of systems needed to get a quote. The more you order, the bigger the discounted rate.

If your agents have different needs, are licensed in different states and sell different products, that’s ok. Any of my packages can be worked in to fit the needs of your agency.

Want More Information On Agency Pricing?

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