[Zach]

Team,

For those of you that utilize an opener/closer (SDR/AE, Fronter/Closer, etc) business model, I have a few questions:

-What sort of closing ratio are you expecting from your closers?

-How many packages per month do you expect openers to bring in?

-What sort of tech stack are you currently using for prospecting?

-Do you send inbound marketing to your openers, do you do primarily outbound-only prospecting, or a hybrid of the two?

-What is a realistic cost-per-app? Cost-per-approval? Cost-per-acquisition?

If anyone is uncomfortable sharing these details here, feel free to reach out to me directly.

-Zach

[OnTheRopes]

subscribing. All good questions. It's been my experience that there is no such thing as an industry metric. It appears everything revolves around the quality of the lead and that fluctuates constantly.

[Franklin]

Zach, we meet again. I feel like I'm having deja vu....

Any way to answer some of your questions...



1) What sort of closing ratio are you expecting from your closers?


Industry average for closers, leads to closing, is about 3.9%,

With a streamlined follow up system, I've seen that number go to 8-10%.

If you're generating your own leads and you have a good source, I've seen 20% closing ratios,
over time.

The highest ratio I've ever seen was 1 out of 3, and the leads were $250 each.




2) How many packages per month do you expect openers to bring in?

Number of Packages acquired, depend on the types of leads you're giving your openers.
1 to 3 packages a day is typical with openers with decent leads.



3) What sort of tech stack are you currently using for prospecting?

This answer is more company and process specific, so it's harder to give a general answer here.



4) Do you send inbound marketing to your openers, do you do primarily outbound-only prospecting, or a hybrid of the two?

You should definitely send inbound marketing to your openers, but ideally, give them at least two days of outbound marketing first, so they understand and appreciate the difference.

Openers should be good at outbound marketing, even if they don't do it, because they’ll perform more effectively with real leads.


Openers will still have to do outbound calls to chase docs and follow up, but that’s not the same as outbound prospecting, which takes more skill.


What is a realistic cost-per-app? Cost-per-approval? Cost-per-acquisition?




5) What is a realistic cost-per-app? Cost-per-approval? Cost-per-acquisition?

This Depends on your type of marketing.

For an average $30K deal, paying 8 points or $2,400, you can expect to pay $500 to $1500 per funded deal.



I’ve given two examples from both end points – The most expensive and least the least expensive.



#1 - Online Leads

25 Leads


$48.00 Per Lead Average

0.4 Packages from leads

25 Leads
10 packages

$120.00 per package

3 Approvals
1 Funded

$400.00 per approval


$1,200 - Cost Per funded deal





#2 - Dialing/Texting (Done Correctly)

25 Leads


$20.00 Per Lead Average

0.3 Packages from leads

25 Leads
7.5 Packages

$66.67 per package

3 Approvals
1 Funded

$166.67 per approval


$500.00 - Cost Per funded deal







www.UccRadar.com - Large sales revenue merchants filling out YOUR application.

[mistamca]

Team,

For those of you that utilize an opener/closer (SDR/AE, Fronter/Closer, etc) business model, I have a few questions:

-What sort of closing ratio are you expecting from your closers?

-How many packages per month do you expect openers to bring in?

-What sort of tech stack are you currently using for prospecting?

-Do you send inbound marketing to your openers, do you do primarily outbound-only prospecting, or a hybrid of the two?

-What is a realistic cost-per-app? Cost-per-approval? Cost-per-acquisition?

If anyone is uncomfortable sharing these details here, feel free to reach out to me directly.

-Zach

- Closing ratio is very dependent on the opener. Quality open should be ~40% close rate based on "closeable" paper.
- # of paper is dependent on the quality of opener. ~1 app per day for cold data
- Tech stack is mostly custom. Open source dialer with a bunch of fun features like spam detection prior to renting with a standard CRM to house all data. Email Servers fed into an open-source email marketing
platform. Texting is done through a variety of providers like twilio or bandwidth with a custom front-end that links back to a standard CRM.
- Quality inbound leads should be given to closer and they should run full cycle on those sales
- Keep it under 1k but cold leads should be lower or else you will have high turnover of employees
- Create a streamlined training program which is a brokers biggest cost imo

[ForumGuy]

Great Topic here and I would like to hear more opinions/stats on this.

I can relay some information a mca shop told me a few years ago. They said on average, brokers should send out 5-10 applications per day and expect 50% to come back. Out of those applications that come back about 10-20% should get funded.