Television is not a source for prospecting and most agents wouldn’t consider it. There are many reasons. The unknowns about how to do this are the main reasons. Agents are reluctant to spend the necessary money to market in this region. What is the real cost to make this happen.
* An advertisement script. A hook and a play on the benefit/problem relationship are essential for the script. A professional writer should be hired to write the script.
* Talent: You need someone who can tell the story. Someone who is credible and trained to deliver the message.
* Always hire a professional to shoot the video. Also, make sure that you have a place where sound and lighting can be controlled.
* This is the final stage of production. Everything is compiled and timed to fit into the slot. You should use an experienced editor to help you add graphics to convey the message.
* It is important to have a media buyer who will place the TV ads in the right demographics to reach the target market.
Do you find this confusing? It shouldn’t unless you are a professional in the business. The solution is to hire an agency to handle all the details. You should ask for references and look at previous work before you hire an agency to do these services. How much should you budget for a turn-key commercial? It’s much less than you can imagine.
These expenses are normal for most shoots. You must ensure that you have the copyright to all aspects and there are no residuals.
* Union provided the writer and script for this commercial: $300
* Talent, lots of options and lots of talent are available: $300
* Video shoot including camera, director, studio etc. : $2,000
* Media formatted for TV station post production: $1,500
Add 20% to the costs of coordinating the commercial and being the responsible party by using an advertising agency is well worth it. An advertising agency is something I recommend.
New Total $4.920
This will give you a 30-second commercial and a 10-second “teaser” ready to air.
The key to success is the media buyer. It is important to discuss all aspects of the demographics and thoroughly explore them. Place your ads based upon your target market, not the price of the spot. If I ran a TV ad for $300 in a 30-second spot, it would get the desired response. It would be cheaper than a $20 slot in the middle night that drew zero people. Make your media decisions based upon the demographics.
These are the estimated lead results for a commercial that runs on local TV news for 40 days with a 30-second placement and a 10-second teaser every day in the right demographics.
Based on an intelligent purchase by an experienced company, 40 days at 30 or 10 second spots will run $4,500
Production cost and purchase expense total $9,420
You still have the commercial
Expected leads in the campaign 135
Lead cost, per lead $69.77
20 Fact finders
14 Case openers
Premium sales equal to $77,000 equates to an average premium premium of $77,000
Expected commission $24,600
Sales follow up from original leads equals 2 sales
2 sales of $77,000 equal $154,000 premium
Additional commission of $12.320
Total commission expected $36,920
It is easy to prospect in television and can prove very lucrative. This will make you stand out from other agents, and it allows for you to outsource marketing, which means more time is available for the sales process.
If you are interested in this segment, I suggest that you commit to using TV for at most 6 months before you can determine your results. These leads can be used to make future sales by simply staying in touch with them and using a simple system to follow up.