Hey it’s Joe from The Personal Injury Newsletter.
This is a minute-long read that will help you sign better cases for cheaper.
The topic of this newsletter is why cost per lead doesn’t matter and why you should be looking at a different number.
Problem
You are in business to make money. I am in business to make money. Everyone wants to make money. And how do you do that? By bringing more dollars in than dollars that go out. Keeping costs low. Getting the cheapest things. Etc.
Generally speaking, that’s the right advice. But there are certain areas where it makes you MORE money to pay a premium than buying the cheapest option. I’m sure there’s a few examples that come to mind, but today I want to discuss why the cheapest LEADS don’t always equate to the cheapest CASES.
And it’s really simple: Quality leads convert at a better rate than cheap leads.
Now, that’s a pretty big generalization and it’s not always the case, but you get the point: there are higher and lower quality leads.
But lead price doesn’t matter. What do you really care about?
Cost. Per. Case.
Story
I was recently doing a strategy session with a pretty big firm in the Midwest. I think my oldest brother actually went to law school with the guy who started the practice, big billboard guy. Dude’s just crushing it in the PI space.
They wanted to buy leads from us and when I quoted them the price, she was taken aback. She said “that’s almost double what we get internally and what other lead vendors charge us!!” I replied, I understand, but what is their conversion rate? What does cost per case end up coming out to be?
I won’t bore you with all the math, but put it this way: once we did all the calculations, our cost per case based on the conversion rates we typically see was far lower than what she was seeing internally and with other lead vendors.
That’s because we do so much vetting and filtering on the front end that by the time the lead hits the CRM, it’s piping hot ready to sign. Sure, it costs us more to acquire those leads and by default we have to charge firms more, but it’s better for everyone (include the intake team that isn’t chasing ghosts).
Implementation
Here’s what you should do next.
Next time you’re speaking with a lead vendor, ask them questions like this:
What is your average conversion rate?
Do you have reported numbers on average case value?
Are these exclusive or shared leads?
What’s the breakdown between soft tissue and higher value injuries with these cases?
You may just find that the more expensive leads end up being the cheapest in the long run.
P.S. Work with me: If you want my help, go to https://atriumleads.com and book a call to see if you qualify.