How to cut your lead costs by 66 percentArticle added by Lew Nason on May 3, 2011
Joined: October 13, 2006
Ranked: #2 (25,364 pts)
What if you could cut your lead costs by 66 percent or more and get a lot more of the people in your local community to know you and call you for help with their insurance and finances? What if there was a way you could get the same or better results for under $1,000 per month?
What if you could cut your lead costs by 66 percent or more and get a lot more of the people in your local community to know you and call you for help with their insurance and finances? Would you like to get your clients, family and friends to buy more, and buy more often from you?
How much easier would your career be if you could get all your clients, family and friends to refer people to you?
Most agents and advisers are overlooking one of the best, easiest and most cost effective ways of generating consistent high quality leads and sales from the people in their community.
Are you using one or more of these traditional, expensive methods of generating leads and sales? Consider:
Buying 200 leads per month will cost you $2,000–$4,000. Then there's the time you must spend calling them, trying to set an appointment. Most people are lucky if they are setting appointments with one out of every five leads. That's about 40 appointments per month and four to 10 sales.
Using a direct mail program and sending a minimum of 10,000 pieces a month will cost you $8,000 to $15,000 with paper, envelopes, return envelopes, printing, stuffing envelopes and postage. If you are lucky enough to get a 2 percent response, you'll have 200 leads just like above. And then calling them you'll get the same 40 appointments per month and four to 10 sales.
Running ads in a newspaper offering a free report or free educational workshop will cost you between $500 and $1,000 per week ($2,000–$4,000 per month). And, that's not counting the cost of the free reports or the workshop.
Dinner seminars will generally cost you around $3,500 for the mailing and $1,500 to $3,000 for the meals. That's $5,000 to $6,000 per month.
If you join an organization that provides leads, you'll generally take a reduction in your commissions. Even if you only sell $10,000 in premiums per month, the reduction in commissions will cost you about $3,000 to $6,000!
What if there was a way you could get the same or better results for under $1,000 per month?
First, would you agree that most people prefer to do business with people they know? Second, would you also agree that most people would prefer to do business with an expert in the field? Finally, would you agree it's easier to set appointments and close sales with people once they begin to know you and trust you?
Then please consider the following:
Are you providing a service that actually helps people? Do you feel good about what you do? Then who are the first people you should be helping? Who's going to take better care of them, you or a stranger?
Aren't your neighbors, family, friends and the people you do business with being contacted by, and buying products from, your competition? Shouldn't you be letting them know about you and what you do?
How about sending everyone you know — plus your neighbors and the people you do business with — a heartfelt letter (not a sales pitch), letting them know that you are in the business and providing information about the areas in which you specialize? Make sure they know you are available if they have any questions, want a second opinion or need help.
Why would any of them call you if they don't know what you do, or how you can help them?
Next, how about sending your neighbors, clients, family, friends and the people you do business with a monthly newsletter?
Mailing a monthly newsletter to 500 neighbors, family, clients, friends and the people you do business with will cost you under $1,000 a month. It's generally around $59.95 for a personalized client newsletter, plus the paper, envelopes, printing, stuffing envelopes and postage. And you can email it free to all the people who you want to get to know you. You can also post your newsletter on Facebook, LinkedIn and offer it on your website.
By sending these people your monthly newsletter, you'll soon become the local expert in their eyes. Now you can offer your free report and educational workshops to get people to call you. You will get a better response because these people will feel they already know and can trust you.
And because you are staying in touch with everyone and reminding them of what you do, you'll get more calls from the people in your local community, more sales from your clients, friends and family, and many more referrals.
An important tip for the most effective newsletters
An effective newsletter must be designed to get people to take action, and do something! In other words, it cannot have boring articles about how great you are or how big your company is or how you guys are "number one." And it cannot be all about your products or investment returns.
It cannot have slogans as centerpieces; things like, "We never give up when it comes to your insurance needs!" or "Don't make a move without us!"
It cannot use recipes.
We have learned that expensive, professional-looking newsletters focused on image or name recognition — obviously not written by me — look good but yield poor results when compared to the results achieved by a warm, personal newsletter.
In fact, our tests have proven that a home-made looking newsletter (the more home-made looking, the better) full of juicy, time-saving and money-saving information instead of boring stuff or clever cliches is 12 times more effective, dollar for dollar, than a high-gloss, professional newsletter that was obviously prepared by an advertising agency.
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