The Lie About Leads
Below is a MRR and PLR article in category Business -> subcategory Management.
The Truth About Leads
When it comes to offers of "free leads," my inbox is flooded with emails every week. These promotions often serve as lures for agents to join forces with specific insurance wholesalers or product providers, who are eager to offer tools that supposedly enhance sales. However, it's crucial to understand what the industry really means by a "lead," as the term is often used inconsistently. Agents must be clear about what's really on offer.
Understanding Lead Types
Cold Leads
These are essentially names sourced from mailing list brokers. While these individuals might meet certain criteria like age or income, they're practically just random names, similar to those you'd find in a phone book. When I first started as a stockbroker, mutual fund wholesalers provided me with thousands of these "leads." Needless to say, they ended up in the trash. Cold-calling strangers is not an efficient use of time.
Warm Leads
These are people who have actively shown interest, perhaps by filling out a card or an online form. The most promising prospects are those who take action voluntarily, without any external pressure or telemarketing interference. This type of lead holds genuine value because the individual has shown a proactive interest.
Telemarketed Leads
Advertised as warm leads, these supposedly come with a prospect eager for your call. However, the reality is quite different. Often, these prospects have been convinced over the phone and haven't acted on their own interest. By the time you contact them, any initial persuasion has likely faded, rendering these leads nearly as ineffective as cold ones.
The strongest leads are those who respond directly to an ad, a piece of direct mail, or a similar prompt.
Set Appointments
Set appointments can be highly valuable. It's important to know how the appointment was arranged. If a prospect called in response to an advertisement and a telemarketer then scheduled the appointment, that's ideal, as the prospect showed initiative. Conversely, if someone was randomly called and persuaded into an appointment, the lead is weak?"these prospects might not even be home when you arrive 30% of the time.
Key Questions to Evaluate Leads
1. How is this person suited for my product or service?
2. Were they cold-called and convinced to become a lead?
3. Did they act independently, indicating genuine interest?
The third type of lead is most desirable, with a conversion rate of at least 10% into clients. This allows you to effectively quantify a lead's value.
Quantifying Lead Value
If you earn $2,500 per client and are willing to spend 10% of that to acquire a client ($250), you should be ready to pay $25 per lead for 10 leads, resulting in one new client.
Maximizing Lead Value
To fully leverage leads, possessing strong sales skills is essential. These skills are developed through training, not just experience. Investing in professional sales training from reputable institutions like Dale Carnegie, Sandler Institute, or Huthwaite can make the difference between a successful career and a mediocre one. Without proper training, you risk working harder than necessary for lesser returns.
You can find the original non-AI version of this article here: The Lie About Leads.
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