How To Buy Insurance Leads BETTER
On the pro side, company leads typically are free so if you're starting out you don't risk your own money on leads that might not convert to sales. Not having to compare lead providers and lead costs frees up more of your time to sell life insurance.On the con side, they may be old and worked to death. When an agent quits, the company reclaims his leads and may distribute them to the new agents. By the time you get your hands on a company lead, it may have already been called by a half-dozen or more ex-agents.
how to buy insurance leads
So what is the best way to compete in this landscape? Buying insurance leads is one tool that's benefited many agents, and it's worth considering if you want to grow your agency. However, it's important to understand the benefits and the downsides of buying insurance leads before you commit to it for your business.
Leads are a necessity for any insurance agent. Without leads, you're not selling any policies. However, all leads aren't created equal. Some leads show promise, while others will result in a waste of energy and time.
Cold leads are the traditional leads you think of when you're making cold calls in the sales industry. A cold lead is someone who is a completely random contact. If you look in a listing of names and phone numbers, like a virtual phone book, that contact is a cold lead.
A warm lead is someone who shows an interest in a particular product. Requesting an insurance policy quote, for instance, is a sign someone needs or wants insurance. A unique, real-time quote request is the ideal warm lead for an insurance agent.
The process of purchasing leads starts with working through the lead provider. You'll typically use their software to select filters to identify the types of leads you seek. In the best cases, you can get leads on your terms, in real time. You may also be in a position to bid on a promising lead, depending on the lead provider's services. In the simplest terms, you provide the online vendor with information about your location, products, and the types of leads you need, and they present you with options.
For an insurance agent to be successful, it's critical to keep a constant flow of leads coming in. To keep your business going, you need to move from one lead to the next. Lead generation allows you to connect with one lead after another, work sales opportunities, and steadily bind new policies.
Think about the time it takes to identify leads. Cold calling traditionally only shows a success rate of around 2%. With cold calling, you could spend an entire day making phone calls only to convert two of those 100 calls into an insurance policy sale. And for many agents, managing marketing efforts can be just as time-consuming.
Instead of chasing lower-quality leads or monitoring and optimizing your marketing campaigns, you can focus your energy on growing your insurance business by connecting with warm leads already in the market for what you are selling.
With lead generation, you have interested leads at your fingertips, cutting out wasted hours you may have spent reaching out to folks with no intention of buying insurance from you, or managing marketing campaigns that may not be providing positive ROI. Purchasing leads helps you talk to interested, qualified leads.
It's difficult to get off the ground as an insurance agent. It can feel as though you are on an island, with no one to reach out to for assistance and no sound guidance on what to do first. Think of lead generation as a tool to help you get off the starting block. Once you start making sales and building momentum, referrals from those sales and renewals will begin to propel you to next-level success.
Insurance agents operate best when they can build up a network of customers. Those first sales become new relationships that you can build over time. When that individual or business hears of a friend also needing insurance, they send them your way. As you use a lead generation service to establish new clients and grow your network, this will lead to more organic lead generation over time. Buying leads can be a starting point for this process.
There is a downside to everything in the business world. While purchasing insurance leads seems ideal and easy, it is not without its issues. Understanding the downsides of buying insurance leads can help you make the best decision for your business.
You need to know what you are getting when you buy insurance leads. Some lead providers offer unique, real-time leads of high quality. Still, other lead generation providers sell the same lead multiple times, making it a race to see who can reach them first. You need to know what you are getting before you invest the capital in buying leads.
An insurance lead should be something with a target. It should be geo-centric, matching where you are selling insurance. On top of that, the lead should be delivered in real time. Someone who was looking for life insurance six months ago is irrelevant today. You need leads who are interested in buying right now.
Organic leads or a referral might cost you little or no capital. When you purchase leads, however, you are putting money out on the table. This will cut into your commissions and your overall profit margin. That means it's only worth it if it truly helps you close more sales.