Why Telemarket leads won’t last long term in final expense market
Hey good afternoon, I am Matt McCray, agent and success coach here at FEXsuccess.com. Todays topic we are gonna talk about why Telemarket leads won’t last long term in final expense market?
Agents typically love or hate telemarketing leads, beyond that its a great lead, but its not good for the long term. We are going to go through the reasons for that right now. But let’s take a look, I asked our data supplier company, the company that supplies us with the data, to run some counts and I chose a highly populated area, we went with Cleveland, OH, we pulled the entire county Cuyahoga County here in Ohio, we asked them to give us some counts on people who are 50-80 years old. Telemarket leads won’t last long term in final expense market, Now this is from the database company this is their data but the numbers they came back with there’s 426,000 people who are 50-80 in the database in Cuyahoga county. So out of those 426,000. the next number I asked for was how many of these people are we able to call, that are not on the do not call list, and that number came back at 63,000 so that’s like 15% of the people we are able to call. 85% of the population in that county and it’s much like every county across the county, 85% of the people are on the national do not call list or the state do not call list and we’re simply not allowed to call and market to them for any type of product; whether its final expense or medicare or anything we just aren’t allowed to call them. So right there that’s reason number 1 that wipes out why Telemarket leads won’t last long term in final expense market
Telemarket leads won’t last long term in final expense market boiled down
So lets boil these numbers down a little bit further, once you start calling those 63,000 you’re not going to get in touch with all 63,000 typically there’s gonna be people who its gonna go to answering machine, there’s gonna be people who simply don’t answer because remember those 63,000 people are being called all of the time because those are the only people in Cuyahoga county that can be called that are 50 to 80 years old so they get calls from telemarketing companies all the time, they’re inundated with calls, so what do they do? Telemarket leads won’t last long term in final expense market, They stop answering the phones, they just stop answering the phones. So there’s alot of competition calling those 60,000 people those people eventually just stop answering the phone. So let’s boil it down, you can get down to 21,000 people who will probably answer the phone, about 1/3 of the people you’re calling are going to answer the phone and actually have a live connect and give a chance to a telemarketer. So out of those 21,000, let’s say that 3% of them, and that’s high, if you do direct mail then you might only get 1% return, but lets do 3%, so 3% of 21,000 is 630 people you are going to be able to convert it to a lead so how many leads does an agent need? 25 leads a week is a good number for a telemarket lead so 630/25 that’s enough leads to run you about 25 weeks, maybe 6 months worth of business and at that point you’re hitting a dead end. What do you do now for leads? Well hopefully somewhere along the line you decided to stop using telemarketing leads and you started buying some direct mail. Now direct mail is typically going to take 3 weeks to kick in before you’re gonna start getting any and their more expensive, but if you’re doing direct mail you can mail everybody in that county that’s 50-80 years old you can even narrow your target market down more, lets say you like age 59 up to 78 you can narrow it down and still have 100s of thousands of people that you can mail and if you’re doing 1,000 to 2,000 piece mailer a week that’s going to last you a lot longer then these telemarketing leads are. SO another thing, cell phones, we aren’t allowed to call people who have cell phones, and that’s where the industry is moving, fewer and fewer people are having a landline in their home, there switching to cell phones, we aren’t allowed to call those people so as we move into the future its going to be even harder to do telemarketing. So I suggest now that you get started doing direct mail as soon as you can, now telemarket leads yes are a great way for an agent to get started in the market because you can get leads quick and they are cheap. So a quick turn around, cheap lead, much lower investment, it can get you started in the final expense business where you can start working your way to purchasing direct mail leads, but I recommend getting in the direct mail leads as fast as possible.
Telemarket leads won’t last long term in final expense market recommendation
So those are the reasons we don’t recommend, those are the reasons that final expense telemarketing leads just don’t last long term for agents in any specific area. So what I did is I used numbers in a very large populated area, imagine if your working in areas not as large as Cleveland, Cuyahoga county, your gonna have to keep jumping around from county to county and doing a lot of traveling so that’s why telemarketer leads won’t last the long term. So I hope you liked the video, you got something out of it, if you did make sure you thumbs up the video and if you haven’t yet subscribed to our Youtube channel please do that right away, that way each time we upload a new video you’ll get a notification we do question of the week and we do training of the week, we want you to be involved and see those videos. But for now great selling, thanks and have a great day.