Conversion Rate
Definition
The percentage of leads that result in a closed sale. Real-time leads convert at 5-15%; aged leads at 1-5%.
Understanding Conversion Rate
Conversion rate measures the percentage of total leads purchased that result in a sale, regardless of whether you contacted them. This is different from close rate, which only measures prospects you actually spoke with. If you buy 500 aged leads and make 8 sales, your conversion rate is 1.6%. Conversion rate is your bottom-line performance metric — it accounts for contact rate, close rate, and everything in between.
How It Works in Practice
Here is the funnel math for a typical aged lead campaign. You buy 500 leads at $1 each — $500 total investment. Your contact rate is 12%, so you reach 60 people. Your close rate is 10% of contacts, so you close 6 deals. That gives you a 1.2% conversion rate on total leads purchased. If your average commission is $600 per deal, you earn $3,600 from a $500 investment — a 620% ROI. The math works because volume compensates for the lower per-lead conversion rate.
Conversion rates by vertical: final expense aged leads convert at 2-5%, Medicare at 2-4%, mortgage at 1-2%, solar at 1-3%, auto insurance at 1-3%, and SSDI at 3-5%. These benchmarks assume consistent multi-touch follow-up over 10-14 days with at least 5 contact attempts per lead.
Why It Matters for Aged Leads
Conversion rate is where aged leads prove their value. Real-time leads convert at higher rates individually — 5-15% — but cost 10-50x more per lead. When you calculate cost per acquisition, aged leads almost always win. A 2% conversion rate at $1 per lead means $50 per customer acquired. A 10% conversion rate at $30 per lead means $300 per customer acquired. Tracking conversion rate by lead age, lead type, and outreach method lets you optimize your spend and focus on the combinations that produce the best returns.
Related Lead Types
Related Terms
Pipeline
The collection of prospects currently being worked by a salesperson or team. Aged leads are used to fill the pipeline affordably — ensuring there are always prospects to contact.
Speed to Lead
The time between a consumer submitting their information and receiving the first contact from a sales representative. Critical for real-time leads (seconds matter), less important for aged leads.
Contact Rate
The percentage of leads where the salesperson successfully reaches the consumer (phone answered, email replied, door answered). Aged leads typically have 5-15% contact rates via phone.
Follow-Up Cadence
The scheduled sequence of contact attempts across multiple channels (phone, email, text, mail, door knock) used to work a lead. Most sales happen after 5-7 contact attempts.
Multi-Channel Outreach
The practice of contacting leads through multiple communication channels — phone calls, emails, direct mail, text messages, and door knocking — to maximize contact and conversion rates.
Cold Calling
Contacting a prospect who has no prior relationship with you. Aged leads are sometimes called 'warm cold calls' because the consumer previously expressed interest — they're not truly cold.
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