Nano Training Series: Week 5
Direct Mail 101 (Part 2)
Pay Per Lead
There is another system of direct mail leads that may be more appealing to new agents because of the reduced risk.
In areas that have low response rates, agents should consider buying leads through a company that charges per lead instead of per thousand.
Set prices per lead prices will vary. You should expect to pay $20-$30 per exclusive leads and $3-$5 for shared or aged leads. Exclusive leads are only sold to one agent while shared leads are sold to multiple agents. If you are buying an aged leads are often called ‘Class B’ leads and that means they were purchased and worked by 1 -5 agents who didn’t get the sale. You can buy the worked leads at a discount price.
Class B leads are great for new agents to practice with. Don’t be fooled by the low price. They are sellable but you have to work more leads to get the sale. Just because one agent didn’t sell it, doesn’t mean you can’t. These leads are valuable and they are very inexpensive.
There are still a few companies that offer set price leads but as response rates decrease, more and more of these companies are changing the way they do business. Many are switching to price per thousand because they
aren’t getting a big enough return to make money.
Advantages:
- Inexpensive
- Has prospects handwriting
- Consistent lead source
Disadvantages:
- Prospects don’t remember sending card
- Lower Closing Ratio
- Prospects grow tired of being called on
Prospect Lists
The least expensive lead available is a simply prospect list. Have you ever asked yourself, “Where do companies get the names and information for the prospects you visit?” The answer is in the list. Venders can rent a list of names with very specific information about prospects. For example, If I want to order a list of seniors ages 60-85 years, who
live in XYZ zip code, and make less than 75,000 a year… I can. With this list I can cold call these prospects, set appointments, make sales, and make money. These lists cost very little and many times you can get
them for FREE from your manager.
Advantages
- Inexpensive to FREE
- Large number of prospects to call on
Disadvantages
- High rejection
- Hard work
- Low closing ratio
There is another system of direct mail leads that may be more appealing to new agents because of the reduced risk.
In areas that have low response rates, agents should consider buying leads through a company that charges per lead instead of per thousand.
Set prices per lead prices will vary. You should expect to pay $20-$30 per exclusive leads and $3-$5 for shared or aged leads. Exclusive leads are only sold to one agent while shared leads are sold to multiple agents. If you are buying an aged leads are often called ‘Class B’ leads and that means they were purchased and worked by 1 -5 agents who didn’t get the sale. You can buy the worked leads at a discount price.
Class B leads are great for new agents to practice with. Don’t be fooled by the low price. They are sellable but you have to work more leads to get the sale. Just because one agent didn’t sell it, doesn’t mean you can’t. These leads are valuable and they are very inexpensive.
There are still a few companies that offer set price leads but as response rates decrease, more and more of these companies are changing the way they do business. Many are switching to price per thousand because they
aren’t getting a big enough return to make money.
Advantages:
- Inexpensive
- Has prospects handwriting
- Consistent lead source
Disadvantages:
- Prospects don’t remember sending card
- Lower Closing Ratio
- Prospects grow tired of being called on
Prospect Lists
The least expensive lead available is a simply prospect list. Have you ever asked yourself, “Where do companies get the names and information for the prospects you visit?” The answer is in the list. Venders can rent a list of names with very specific information about prospects. For example, If I want to order a list of seniors ages 60-85 years, who
live in XYZ zip code, and make less than 75,000 a year… I can. With this list I can cold call these prospects, set appointments, make sales, and make money. These lists cost very little and many times you can get
them for FREE from your manager.
Advantages
- Inexpensive to FREE
- Large number of prospects to call on
Disadvantages
- High rejection
- Hard work
- Low closing ratio