Leads generation

I have website that allow anyone to fill out their information and get e.g. Commercial auto insurance and the last page will show their companies. The user is free to select any companies he or she wants.

Recently, I have those insurance broker who like to put their name on the list and I want to learn how I should charge them ...

Any ideas?
LVL 1
ITsolutionWizardAsked:
Who is Participating?
I wear a lot of hats...

"The solutions and answers provided on Experts Exchange have been extremely helpful to me over the last few years. I wear a lot of hats - Developer, Database Administrator, Help Desk, etc., so I know a lot of things but not a lot about one thing. Experts Exchange gives me answers from people who do know a lot about one thing, in a easy to use platform." -Todd S.

Serena HsiMarketing ConsultantCommented:
It depends on how cold/warm/hot these leads are that are being generated and the completeness of the buyer data being collected. If you are turning around these 'hot leads' to interested clients (e..g, insurance brokers), is it an exclusive service where the client gets exclusive rights to use the lead data for a specific period of time (e.g., 30 days)? Do you guarantee that these are really interested buyers or are they just people filling out a form to get more information? You may, if you haven't already, include a data usage disclaimer to the user who is putting in their information into your web forms; at the very least, something that talks about your privacy policy with regard to user contact information submitted through your website.

As for pricing, I've seen pricing range from a flat fee (lead gen services fees), subscription (SalesGenie costs $10/month), or per lead ($1 to $20/lead, or whatever is the norm for your industry). You could likely charge more per lead if you build custom lead gen forms for your clients.
0

Experts Exchange Solution brought to you by

Your issues matter to us.

Facing a tech roadblock? Get the help and guidance you need from experienced professionals who care. Ask your question anytime, anywhere, with no hassle.

Start your 7-day free trial
Scott Fell, EE MVEDeveloper & EE ModeratorCommented:
I have a similar client and they pay different rates for leads.  Most of the lead companies will give out the same lead to multiple agents and charge on the lower end of the spectrum. ($7 to $30).  Most of these leads have been pretty bad.

There is a site that does a good job of what you are doing and worth checking out, https://www.thezebra.com/

I tried this as consumer and was disappointed.

My expectation was a self serve site to get quotes and buy without interaction of agents. The actual was as within seconds of submitting the final form I received multiple phone calls from agents. On top of that, the quotes were way off of what the site promised.  My response was to get upset and not pay attention to any of the responses I received.

The problem  you face as a developer / marketer is many of the insurance brokers/agents are stuck in the 20th century form of marketing.  I feel many are like me, I don't want to be bothered with an agent or human in the buying process unless there is a problem or I have a good acquaintance that I trust is in the business.

Convincing this group to go from a push to a pull strategy will develop better leads that convert to buyers. This will not be a "$xx" per lead.  It will be a $xx,xxx per year and come up with an $xx per lead target knowing it will be higher in year one than subsequent years.
0
ITsolutionWizardAuthor Commented:
Thanks scott. In my case, it is hard to deal with any companies willing to put xxxx per year instead of xx per lead
0
Cloud Class® Course: Python 3 Fundamentals

This course will teach participants about installing and configuring Python, syntax, importing, statements, types, strings, booleans, files, lists, tuples, comprehensions, functions, and classes.

Scott Fell, EE MVEDeveloper & EE ModeratorCommented:
I understand. That's what I was saying. This vertical typically wants what appears to be easy.  "Pay $X per lead and follow up".

Look at this link, http://www.autoinsuranceleadsdirect.com/browseleads.cfm

Shows $3.50 each.

Good luck!
0
ITsolutionWizardAuthor Commented:
Thank you for your information. It is a good reference but that just don’t work in my case
0
Scott Fell, EE MVEDeveloper & EE ModeratorCommented:
Are you referring to the rates being charged? Too low?

The services we are referring to are national working with large quantities of paying members. If you have something more localized that that  is producing leads, I think you will be able to get more. The problem is there is a set amount of commission that the agents make and there just may not be a lot  of money in this. My clients are in the health insurance side and the individual commissions are not great unless they cross sell them into a financial product.
0
ITsolutionWizardAuthor Commented:
My vertical is a lot more narrow than home and auto. My revenue model is to approach a few large agents. They have more capital to pay as well as taking care the leads in more proper ways.

In my experience, most small agents regardless of health or p n c, does not have right way to handle the leads. But they end up complaint the leads do not work well. I just don't want fall into those drama.

Basically, I provide marketing and technical side to help them generate more business. On the tech side, I definitely know what to do. Just on the marketing side, I am still not sure how to come up with win win revenue models
0
Scott Fell, EE MVEDeveloper & EE ModeratorCommented:
That's because they all want the Glengarry leads.

This is the catch 22 I was referring to.  They want to buy leads of people that are ready to buy "now".  Those don't really exist in the way they expect.  That is where pull or inbound comes in https://www.hubspot.com/inbound-marketing. But they typically don't want to do that.

A some point, somebody has to take the plunge and cultivate leads. Let's assume it is going to be a PPC campaign because in the short term, that is really all you can do.  Since you are working with a small amount of clients essentially want the same thing, you can offer a cooperative marketing program. Each would be required to spend a predetermined amount and from there you can run a ppc campaign that directs people to your site which sends them lead and charge a percentage of the spend as your fee. This is typically between 25% and 50%.  

If you have never done this before, it is very easy to fail.  And where most failures happen is by not spending enough. There is going to be a budget that if it is too low, it will be like spitting into the wind.   On a local campaign, if you can't spend $5K per month, you may not get enough to support .  If you can get 200 leads, then that comes out to $25 per lead.  Let's say they agree to that but they only want to spend $500 to test the waters.  What I found happens is that $500 does not generate enough leads to pay for the campaign.

To back up. I am assuming if you build a new web directory or lead generation page, just putting up the page without any promotion will not get any traffic on it's own unless you or somebody puts some effort into it.

If you look at the attorney vertical, FindLaw has a directory and other web services. They charge a lot of money to be in the directory. But they do not have any competition with major carriers like insurance does.  For just about any local area, if you do an attorney search, the FindLaw directory is probably going to be on the first page and probably towards the top of the organic results.

This is where being local may help on your side. If you can push your site as being the place to access the an insurance agent and the site gets used and moves up to the top of results and you are also taking advantage of social, you may have something to offer. This will take a lot of effort on your part.

The first thing I would do is go to my small group and ask if you can deliver a lead that is ready to purchase, what would you pay?  What would you pay if you found there was a 70% chance of a sale?  50% chance of a sale? 25% chance of a sale?  

If what you hear from this for an almost guaranteed sale is to low, then that is your answer.  My guess is the high side is going to be $30 to $50.  Assume you can sell leads at $50 and it will cost you $30 with a budget of $5K monthly.  That's 100 leads and you make $2K.  That is a lot of work for not very much money. That's why you have to scale  up.

Let's go back to the first few posts here where the national companies are charging $1 to $20+ per lead.  What you are up against is "the others charge $5 per lead" and you you are charging $50.  And so your response  is it may take 10 or more of those leads to equal your one. But they still look at the $5 number.

For that reason, I have stayed out of trying out something similar for a local scale.

In closing, you have to have a transparent conversation with your clients and get to some real figures they can live with. Instead of going at it as a cost per lead, I suggest you are the shared cooperative marketing arm for a fee.

Best of luck!
0
ITsolutionWizardAuthor Commented:
Thank you coach.
0
It's more than this solution.Get answers and train to solve all your tech problems - anytime, anywhere.Try it for free Edge Out The Competitionfor your dream job with proven skills and certifications.Get started today Stand Outas the employee with proven skills.Start learning today for free Move Your Career Forwardwith certification training in the latest technologies.Start your trial today
Web Development

From novice to tech pro — start learning today.

Question has a verified solution.

Are you are experiencing a similar issue? Get a personalized answer when you ask a related question.

Have a better answer? Share it in a comment.