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Let’s first take a look at three ways to conduct lead generation off-line.
The key here is the copy in the ad. If you have not mastered writing copy, then hire a copy
writer. The words are critical to motivate consumer action.
Although we have not yet tested, we see a number of services that will tele-market for you and
then you pay ONLY for a direct-connect to the prospect. So rather than pay per call, you pay per
connect. This seems like a very good way to generate leads to us. However, we are told that you
will get connects from people complaining not to be called and you will pay the $6 or so for the
connect on that call.
Here’s what happens. You contract with the lead telemarketing firm for say 100 direct connects
with prospects. Say the cost is $600. They will dial (I assume using an auto dialer) and play a
message that they will develop for you (or you can specify). The message might be something
like this, “Business budgets are tighter than ever yet many businesses know they still need to
have life insurance on the important officers as these individuals are critical to the business. To
hear how to obtain the life insurance your business needs at half the cost, press one.” The
prospects who press are connected to you. A HOT insurance lead!
Of course, be realistic. Expect your share of prospects who tell you, “remove my 3$%^&
number from your list you SOB.” On the other hand, can you think of anything better than to
have your phone ring and the caller says “I am interested in your solution for life insurance at
half price.”
We sent a simple postcard on yellow stock offering a free booklet called “Annuity Owner
Mistakes”
We got a 1.2% response rate in an educated affluent area on the west coast (the more educated
and affluent the area, generally the more skeptical the respondents but the more money they have
and the better the insurance lead quality)
So from 1000 insurance lead mailers, we got 12 replies. We send the booklets and then call the
12 people within 2 days and make 2 sales, generally, 2 annuities each over $100,000 (all of our
annuity sales in this area were over $100,000). So at 6%, we made $12,000 for an investment of
about $500. This is a LOW volume, HIGH quality insurance lead system. Most agents do it
backwards–they like a lot a lot of volume so they can waste their precious time calling 100
people to find the two interested prospects. Note that we only make 12 calls to make 2 sales.
Important lesson—make sure however you get leads, the system is LOW volume, HIGH quality
so that you invest little time. It’s incredible that so many businesses think that a system that
generates more leads is better.
Best book we have STUDIED on copy writing is "Cash Copy" by Jeffrey Lant. However, we
studied dozens of books over 5 years to really master how to write effective ads and direct mail.
Obviously, when using pay per click marketing for leads, you pay for all the clicks but only a
small percentage of the respondents are viable prospects. In many industries, the big companies
will out-bid you for leads but since you can target your ads to just your geographic region (if you
are a local business), you can outbid them for just your area and get plenty of leads.
This also takes quite a bit of time as you must continuously adjust your bids and test different ad
formats and landing pages. If you want to outsource this type of Internet lead generation, we do
that at Brokerville.
Co-generated Leads
The next method of lead generation is called co-generation. Your ad runs on the websites of
other businesses that do not compete with you. When the prospect is filling out the form on the
other web site, they get an option to also have their information sent to you—i.e. they see your
offer. If a prospect sees your ad and completes a form with their contact information, you then
pay for this lead. This is called “cost per action.” The best part of this type of lead generation is
that you pay for the prospect’s contact information. If the prospect does not fill out a form, you
don’t pay. The worst part is that your ad may appear on a vitamin site and the prospects did not
“go looking” for your product or service.
Here is an example. Mrs. Jones goes shopping at the vitaminmart.com (fictional site). When she
checks out, she sees a page with other offers as you see below. You could have an offer on a
page like that and get exposure on hundreds of web sites. You can offer a free report or other
items and pay only for those leads that opt-in to your offer.
If you have a limited budget, the first two options for on-line lead generation work best.
Summary
All of these methods work when implemented correctly. There is always trial and error
involved. Expect to waste some money before making money – there is no way to get it right
without experimenting (just ask Thomas Edison). There is some difficulty using some
marketing options on a small scale for one advisor such as the co-registration option.
Additionally, you must limit your banner ads to locally-oriented web sites as you likely don’t
want to get leads from 1500 miles away. Our firm implements these alternatives nationally and
can then allocate the leads generated to the advisor or agent in each local area. To learn how that
works, please phone 888-893-2990 when you are in front of the Internet and we will show you.