[LTPC-discussions] math

Thu, 19 Jun 2003 18:50:38 -0400

KC,

The concept of 1800-we-insure is sound, but only if there is actual
advertising done to generate the inbound phone calls.  My understanding is
that the main advertising to date was being done by the very agents
themselves in the markets that they have purchased and that a national
advertising campaign was planned (i.e. had not yet been done).  Why would I
want to pay to promote a brand (1-800-we-insure) that I also have to pay to
benefit from?

Now if there was significant exisiting inbound traffic, that would be a
different story.  But I did take notice to the fact that you have to pay the
monthly fee regardless of how many leads are generated leading me to wonder,
if there are so many leads, why would they sell them for a fixed price?  The
answer is if they had the leads, they wouldn't.  At least that's my opinion.

So... by itself, 1-800-we-insure is worthless.  It's true worth can be
measured in the amount of inbound phone traffic that is generated already.
Care to share that?

Thanks
Doug

----- Original Message -----
From: "KC Layne" <kcll@mindspring.com>
To: <ltpc-disc@ltpcalums.com>
Sent: Thursday, June 19, 2003 4:37 PM
Subject: RE: [LTPC-discussions] math

Hey Doug,

My lack of technical savvy seems to know no bounds, I think I may have
sent you a message when I was trying to reply to TMac on something else.
Wish I knew the computer like you do!!  Sorry for the trouble.  But in
answer to your ? it's going great.  In fact, I have always thought you
were very thorough in researching stuff--do you mind taking 5 minutes
going to the site and giving me your feedback....tell me what you see as
the downside or
What you don't like about it.  I would sincerely appreciate it.  To be
blunt
I am finding that the most prolific, experienced agents in all
categories of insurance (not just ltc) are the ones who see the benefit
immediately.  Ones
Who've had to buy their own leads, or pay for advertising see it in a
nanosecond....others who've had leads provided them are slower to see
the benefit right away...or maybe just scared in general because of the
situation.  I'm willing to listen to anything you have to offer.
Thanks.

  KC Layne
  kclayne@1800weinsure.com
  1-800-WE-INSURE
  513 Royal Palm Drive
  Melbourne, FL  32935

  P:  321 751 0861
  C:  404 427 8130

-----Original Message-----
From: ltpc-disc-admin@ltpcalums.com
[mailto:ltpc-disc-admin@ltpcalums.com] On Behalf Of doug@dougburg.com
Sent: Thursday, June 19, 2003 4:07 PM
To: ltpc-disc@ltpcalums.com
Subject: Re: [LTPC-discussions] math

KC,

How is the Phone Leads deal going?  Gotten any good leads yet?

Thanks,
Doug
----- Original Message -----
From: KC Layne
To: ltpc-disc@ltpcalums.com
Sent: Thursday, June 19, 2003 4:01 PM
Subject: RE: [LTPC-discussions] math

Hi guy!

Just called to talk to you, couldn’t find your cell.  Jeff said you
wouldn’t
be available for another hour or so—it’s
4pm on the east coast.  Maybe since you’re on email you could tell me a
time
for you that’s convenient so I won’t
be interrupting you.  Look forward to talking….thanks, by the way for
this
info, and for treating us intelligently. Funny how
a little thing makes such a big difference.

  KC Layne
  kclayne@1800weinsure.com
  1-800-WE-INSURE
  513 Royal Palm Drive
  Melbourne, FL  32935

  P:  321 751 0861
  C:  404 427 8130
-----Original Message-----
From: ltpc-disc-admin@ltpcalums.com
[mailto:ltpc-disc-admin@ltpcalums.com]
On Behalf Of Tom McAuliffe
Sent: Thursday, June 19, 2003 2:54 PM
To: TOM MCAULIFFE
Subject: [LTPC-discussions] math

Let's do some math.......................

To better understand the various deals that you are approached with it
helps
to look at the underlying numbers.

In LTCi, it is generally assumed that one point on the back end is
equivalent to 5 points in first year commission.  So 55/10 is about the
same
as 65/8.  This factors in the Present Value of money, by the way, for
you
math folks.

The enticement of "Free Leads" sounds pretty good unless it is coupled
with
the rest of the phrase, "and they don't hold very much".

For every point of renewal held, one is losing $5,000 dollars per $100K
placed.

If you're offered 60/7 on John Hancock, for example, rather than a top
contract level of 70/10, one gives up:

10 pts 1st yr  +  3 pts renewal or 3 X 5 = 15  or 25 total pts

That equates to $25,000 per $100K placed.  If you put up a solid $150K,
these free leads are costing you $37,500 per year.  Do big numbers and
it
gets ridiculous!

The outfits who provide free leads often keep as much as half of your
potential renewals.  Do not let these people rip you off.  Do not work
twice
as many years to get to the same place in renewals.  If you are not in
LTCi
for the renewals you need to go sell something that's a heck of a lot
easier.

At our August meeting, all the carriers will be there to vie for our
exploding business volume.  Some of them will put up money to help with
your
mailings.  We will consider this as long as they are not too rigid on
the
amount of business sent their direction.  This is only one example of
how we
will use our collective strenght to improve everyone's bottom line.

Our philosophy at Capstone is to help you acquire lead sources, that
very in
cost, from zero ala referrals and seminars, to direct mail at about
$1,900
per month, while protecting your independence.

I am doing numerous credit union, community bank and association
proposals
for our agents that are securing affinity leads and doing it at no cost.
Why?  Because a great agent with solid leads produces big numbers for us
and
that is what is most important in the long run.

To view this properly, be sure your Outlook is set to except HTML

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