How much do personal injury leads cost?
To sustain and grow your personal injury practice, it is vital to obtain new case leads regularly. There are a number of legal lead generation companies that provide new client leads to law firms. Below is more information about personal injury lead generation companies, how much they cost, and related information.
Overview of Lead Generation
The generation of legal leads falls into two major areas: active and passive lead generation.
Active lead generation is focused on providing s number of new personal injury leads consistently over a certain time period, such as each month. Attorneys may pay to receive legal leads for a certain type of case, such as personal injury, that are obtained through advertising: Internet, smart phone, TV, radio, print, etc. New personal injury case leads are distributed to the lawyers through either an exclusive or non-exclusive distribution system.
Passive lead generation is focused on marketing your brand and is intended to give you more leads based upon prospects responding to your advertising. Passive lead generation examples include lawyer rating sites and SEO campaigns. For this type of lead generation, the attorney is usually contracted directly through his website by the prospect.
Non-Exclusive Leads – Distribution and Cost
A marketing model based upon non-exclusive lead distribution involves getting new leads in a certain geographic area and then selling the leads to several attorneys that try to win the business. Non-exclusive leads can be attractive to the personal injury attorney starting out because the cost per lead is low: $50 to $150 per non-exclusive personal injury lead is common.
The cost for each lead is low, but note that the cost to acquire the business when you account for lead conversion. For instance, a company that sells you the non-exclusive lead may charge you only $100. But that lead may be sold to several other lawyers. So, several attorneys are working against each other to get that business.
The chances of landing that new case will decrease based upon the number of attorneys that are contacting the same prospect.
To understand what the non-exclusive lead really ‘costs,’ it is important to look at cost of acquisition. For a typical personal injury attorney, a reasonable conversion rate for a lead is 10%, meaning one new client is brought in for every 10 leads. But when other attorneys are working the same lead, the lead conversion rate drops.
If a lead generation company sells a lead to four attorneys, there is a 25% chance you will win the business. When we consider this plus the typical 10% conversion rate, the actual conversion rate for this purchased non-exclusive lead is 2.5%. You would need to bring in roughly 40 leads to get one new client, or $4000.
Exclusive Leads – Distribution and Cost
A marketing model based upon exclusive lead distribution means that new leads are generated for one personal injury attorney alone. You have no competition with other attorneys for that lead. These leads look at first glance to be very expensive: $200 to $400 is a common price for an exclusive personal injury lead.
The cost per acquisition is higher, but the cost per acquisition is typically lower. Let’s say that the lead firm provides 10 new exclusive leads for $3000. Each lead costs $300. But when we use a 10% conversion rate, we should see one new client per each 10 leads. The cost to acquire that client is lower at $3000.
Acquiring leads through either the non-exclusive or exclusive marketing model can work. Which is best for you depends upon your budget, geographic area, experience level and practice specialty.