Conduct research about lead companies and you'll find a lot of conflicting information. The reality is that a good lead source will be unique to your situation, and you'll need to test to find the right fit.
- Be sure to test multiple lead providers, and compare their return on investment to determine the companies that work best for you. No one company will work best for all agents. Success often depends on an agent's geography, selling style, competition, volume and lead type.
- Be aware that much of the information you hear and read about lead companies can be biased. You will often hear a lot more about what doesn't work than what does. If an agent has a great source of leads, they usually don't want other agents to know about it - doing so could increase their competition and prices.
- Take it a step further and compare your ROI between different lead types - some companies might be stronger in some lead types and weaker in others.
- There's many things to consider when choosing lead companies to test:
- Is the lead shared or exclusive? If shared, what is the maximum number of agents who will receive that lead?
- How do they generate the leads? Many believe that the method has a large influence on the likelihood of that lead to convert.
- Do you have the availability to stop if dissatisfied, or are there contracts that require a minimum commitment?
- Do they use incentives - such as an iPod giveaway - to generate leads? Beware - this is a method some companies use to generate a large volume of low-converting leads!
- Do they resell old leads? Are the leads delivered in real-time? This will vary by company, but typically newer leads have higher conversion rates.
- Do they have a return policy that is fair and easy to understand?
- Ready to master your marketing mix? Use the ROI formula to compare web leads against your other marketing efforts. Door hangers, yellow page ads, events and newspaper ads all have a cost and return. The chart below will get you started, and then apply the formula: Commissions from Effort / Cost of Effort = ROI.
Effort Commissions from Effort Cost of Effort ROI Online Leads ? ? ? Yellow Pages ? ? ? Postcards ? ? ? Newspaper Ads ? ? ? Door Hangers ? ? ? Events ? ? ? Telemarketing ? ? ?
- Need help calculating ROI? Refer to Tip#2: Defining Success Through ROI. It contains a formula to calculate ROI of leads and more information about why ROI is an important metric.
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