Are all Leads program techniques the same? It may appear so since leads responses all look similar (name, address and telephone number), but they are not. There are a number of controllable factors that differentiate leads programs that must be pre-determined for a successful leads campaign. Among these are the various leads generation methods that need to be matched with your budget and your individual "Selling Style".

Columbia Management Group provides a wide selection of leads alternatives and will provide assistance and advice in your selecting a leads program. Issues presented in this write-up provide the first step in evaluating the potential of various leads strategies.

A basic factor in selecting the most effective Leads Program is your "Selling Style". Some Agents prefer speaking with every possible prospective client and do more of the qualification themselves. Other Agents prefer more qualification "up-front", as part of the leads generation program, to maximize their investment in time. Leads programs favoring the later provide the potential client with detailed information, such as premium rates and general policy details. (Direct Mail versus Shared Mail leads flyer examples here.) This results in a higher level of pre-qualification and close rates, but may generate fewer responses. "Selling Style" should be a primary consideration in selecting a Leads program.

Below are factors to be considered in the various leads generation methods available, along with typical average returns and costs.  This is followed by a discussion on "Maximizing Leads Dollars".

Direct Mail:

The Direct Mail leads method uses the Postal Service to individually deliver an advertising piece to prospects that are demographically targeted by zip code, age, income, etc. and contain a postage free reply card. The cost for this leads method is between $350 and $420 per thousand. (Keep in mind that the least expensive bulk mail rate is $.20 each or $200 per thousand, which is included in this pricing.) The response rate varies between 2-3/1,000 (More detailed and qualified ad pieces) and 20-30/1,000 (Less informative "standard" ad pieces).

Lead replies are usually received about 2 to 3 weeks after the "Leads Drop". This length of time is due to the responses coming back 3rd class bulk mail.  When received they are sorted by Agents who have ordered a leads program; copies are FAXed to those agents immediately and then the actual reply card is sent in the mail.

The standard direct mail ad pieces provide limited information, quite often not even mentioning the word "insurance",  and generally provide un-qualified leads. Our "Unique Direct Mail Leads Program" was designed to improve response qualification by providing sample premiums and information on the benefits of Final Expense insurance. This greatly improves direct mail leads qualification.

Telemarketing:

Telemarketing leads have, in the past, been the most popular lead generation technique. The "No-call" law has reduced their effectiveness but they still remain a viable source of leads. A well qualified lead generation Company can effectively filter the prospect via direct personal contact. No other leads generation program can do this. These leads result in the highest close rate.

Our exclusive Telemarketing leads program has a low entry price so you can evaluate for yourself, at a low cost,  how effective the leads are for your demographics. Only 15 leads minimum at a cost of only $15 per lead.

Shared Mail:

Shared Mail is individually delivered via the US Postal Service using the least expensive postage rate available (Much lower even than Bulk Mail). Multiple businesses ride together in a non-sealed free standing package and share the cost of postage. The ad pieces are not in an envelope and delivered to everyone's mailbox in a selected zip code(s). One zip code minimum. The price for this method is $85 per thousand, which includes all postage, ad material and administrative costs. Since the clients responding are not demographically selected (other than zip code) the returns are about 2 to 4 per thousand (average .003%). The Shared Mail ad pieces are more informative and directed primarily towards Final Expense. This  leads to more highly qualified prospects that can result in close rates as high as 75%. Shared mail is basically low cost with better qualified (but fewer) responses and higher close rates.

Best of Both Worlds:

Best of Both Worlds combines the benefits of Shared Mail and Direct Mail and is provided exclusively by Columbia Management Group. The high quality informative ad piece provided with Shared Mail is directly addressed and mailed to a demographically targeted population. Response rates and close rates are between Shared Mail and Direct Mail. The cost is $380 per thousand, which includes all postage, ad material, and administrative costs.

Newspaper Inserts:

Newspaper Inserts can be the least expensive leads method (cost per 1,000 households). Flyers are inserted within an edition of a local newspaper. Throw-away papers are not recommended. Rates depend on the Newspaper and their circulation. Since this method usually covers a wide area, the responses are typically a little better than Shared Mail while the total costs are comparable. The ad piece is normally the same as used with Shared Mail and the response rates are similar. Since the shared mail flyer is highly descriptive, showing the premiums and a good explanation of Final Expense insurance, responses are better qualified. As an example of a Newspapers' charge to insert flyers, the Antelope Valley Press (AVP) in California charges $34/1,000. With the cost of flyers at $40/1,000 the total cost would be $74/1,000 ($34 + $40) using the AVP example. This total is multiplied by the papers circulation (in thousands) for a particular edition.  Columbia Management Group can guide you in the selection of a local newspaper and the steps to take in proceeding with this leads method.

You can find a listing of local newspapers in your marketing area at http://www.newspaperlinks.com/ .

Pay-By-Lead:

Chesapeake Life currently offers a Pay-By-Lead program in most States that costs between $17 and $25 per lead based on production. More information on this is available from the Chesapeake Group that handles this program.

 Newspaper and Magazine Advertising:

While placing individual ads in newspapers and magazines may be expensive, the returns and the close rates far surpass any other leads method. Columbia Management Group has extensive experience in this type of advertising, especially in the use of "Coop" Magazines, which have proven very successful (Utilities, Farm Organizations, Unions, etc.). People seem to have less reluctance in responding to this type of advertising. These magazines normally cover a wide area and have been used by multiple Agents cooperating in the costs and sharing the leads responses. We would be happy to discuss this opportunity with you.

Do-It-Yourself Leads Generation:

Columbia Management Group would be happy to provide high quality (8 1/2" by 12") pre-printed leads flyers at our cost of $40 per thousand (minimum 1,000). This includes the cost of printing, shipping, reply postage ($1.00 each), and administrating the return of replies to you. Agents can use these flyers to mail to their client list, to hand distribute or for any other promotional purpose.

"Maximizing Leads Dollars" is dependent on a consistent leads program strategy and the time, effort, and skill of the Agent. The objective is closing business and NOT in generating leads. Would you rather spend $400  for 20 "Less Qualified" lead responses and close 20% of them, or pay $85 for 3 "Highly Qualified" lead responses and close 70% of them? What is your time worth?

The selection of a leads program(s) must take into consideration the net $$$ return, after including time and effort. The average Final Expense policy commission is $500. An example of the considerations in evaluating the various leads programs to maximize commission, and the net $$$ return, is as follows:

There is no one "best" way for generating leads in all geographical areas. Responses and close rates are different in each area. To achieve the best $$$ return, an effective plan needs to be determined by applying various methods to a large enough audience "over time" in your territory.

Many people feel more comfortable taking action only after they have been exposed to a sales message enough times that it becomes familiar to them. Real estate salespeople call this "Farming" the territory. Once the strategy in your area is proven, it needs to be carried out on a systematic and consistent basis to provide a steady supply of quality leads.

We stand ready to assist you in developing your Leads Program strategy.