If someone offered you a dollar in exchange for 50 cents, how much would you give? If you are like most, you would probably give everything that you had (I know I would). Ben Feldman sold life insurance for pennies on the dollar. In fact, he used to carry a $1,000 bill with him, which he would tell prospects he would sell to them for 3 pennies.
It’s a great strategy for selling and is an excellent analogy for marketing. Too many companies look at marketing and advertising as an expense – not as an investment. When budget time comes around, the first thing people look to cut is marketing, especially if sales are flat or declining.
Generating leads and new business is the primary reason why marketing exists. Over the years, marketing has evolved and companies have become increasingly aware of the results. We know that all leads aren’t of equal value to your business, yet there is a fallacy among many marketers in this industry regarding advisor and agent leads and the measurement of cost per lead . All too often I hear companies say that the CPL is the primary measurement and driver of how their companies’ marketing dollars are spent.
If all leads were equal this would be a correct way to measure, but unfortunately that’s not the case. Anyone can create a lead, it’s easy to create an offer and buy a list, but when you are generating responses — how qualified are they? Did you simply get an email address or did you require more information? Such as an address, type of products they sell, amount of production, etc. And most important — are they even qualified to do business with you?