Direct Mail Final Expense Leads - Let's Do The MathDirect Mail Final Expense Leads - Let's Do The Math

When you look at Direct mail final expense leads, they deliver a simple message. The message is directly related to funeral cost and the fact that the federal government pays $255 as a death benefit. These burial insurance leads also express the fact that seniors who have life insurance coverage will be able to pass this death benefit on tax-free to their loved ones. These seniors know that $255 is not even going to come close to paying for a funeral these days. Some seniors realize this and send these cards in.

If an agent were to send out 1000 mailers a week he or she should receive between 10-15 leads back every week. By having new leads coming in every week will give an agent somewhere to go everyday to sell final expense insurance. Here is the deal, you have to make at least 2 sales every week to just break even. So if you only get to see half of 10 - 15 leads every week, you better be a good sales man.

The final expense market is really pretty simple:

You get in your car with leads in hand, drive up to the house and knock on the door. When the prospect answers the door, you say "do you remember sending this card in"? When they say yes, you respond, "can you tell me what you were thinking when you sent this card back"? You want to uncover the hurt. They had to have had a reason for sending the card in. For instance, maybe a close friend died or a relative.

If you send out mailers every week eventually they will build up to the point that you will have more leads than you will know what to do with. Here lies the problem, remember what I said about having to be a good salesman? Let's do the math $400 per week for 50 weeks equals $20,000 dollars in lead costs. Remember I said you will need two sales per week to break even? Well if the premium is $40 per application that is $960 in commission per week. $960 minus $400 is $560 in profit, so you think. What about the 30% of policies that lapse 3 months later and you get charge backs. What about the gas you using in to drive to your appointments. What about the wear and tear on our vehicle. By the time you are done subtracting all of this you are barely breaking even.

So why even bother buying direct mail final expense leads when you can get referrals and they are free! I know what you are thinking! People don't give referrals anymore. Oh but they do! Most agents don't know how to give the prospect a reason to give the referral. You see most agent ask for referrals and hope that their client will like them enough to give them. It doesn't work that way! Clients have nothing to gain for giving you a referral. I receive referrals all the time and never have to buy direct mail final expense leads. I get on average 15 or more referrals from every client I sell. I get these referrals by using a very ethical and as always 100% legal strategy. If you would like to learn my secret, you can go to my website which can be found in the Author section.

by Daniel K Hopwood
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