Exclusive Insurance Leads
Anyone in the insurance brokerage business knows that high quality leads are hard to come by. Insurance customers are worth a lot of money each, and paying for exclusivity means getting a better return on your investment, even if it requires a greater cash outlay. Most insurance agents are good salespeople, but often even the best salespeople have a hard time finding people to sell their product to. It doesn't matter if you're good enough to sell ice to Eskimos if there are no Eskimos to whom you can sell your ice.
How Lead Generation Works
If you've ever tried selling any kind of product, you know it takes talking to one hundred people to find ten people who are interested in your product, and then only a few of those ten people will actually buy your product after extensive negotiation, discussion, and a long process of building rapport with each of them.
In each step of the sales process, you have to invest time, energy and money into boiling down the general population into hot leads. This is most commonly done by cold calling on the phone or blasting out direct mail pieces, and hoping a small percentage of people are interested enough to meet with you.
But what if you could take out the qualification process? What if for only a few dollars each, you could be fed hot, exclusive insurance leads who are interested in buying your product? What if you could spend your entire work day speaking to people who are ready to buy, rather than finding people who are ready to buy?
You would sell a lot more insurance, wouldn't you?
Why Buy Exclusive Insurance Leads?
A number of lead generation companies gather prospective insurance customers, group them into a lead list and then sell that list on to several different agencies or companies. The result is poor conversion ratios since each lead now has a slew of insurance agents chasing after them for their business.
But what is also important is that non-exclusive lists mean you have to compete solely on price. Consider that someone on a lead list is going to hear from every insurance company under the sun, and if you don't have the best prices, you're not going to get the business. It really is that simple.
Exclusive insurance leads are wholly the property of the agent who purchases them, and are never sold again once they are sold once. Thus, exclusive insurance leads are likely to convert better into new customers and very frequently provide a better return on investment, even though they require a higher out of pocket investment per lead.
Take the Risk out of Advertising
As you're probably well aware, local marketing is an extremely risky activity. While you could purchase a television advertising schedule on cable networks for as little as $1000, there is no guarantee that you'll get a single response. You may have just invested $1000 for no return.
Insurance lead brokers help smooth out that risk. Rather than gamble with your business in high stakes marketing, you'll be able to put up a flat rate amount and know exactly how many people are interested in hearing about your insurance products. From there, you can work on finding a product that fits the needs of your newly found leads and work on making a sale, not just finding someone to sell to.
Live Transfer or Information Leads
Thanks to boom of the digital age, business has gone online as well. A new lead type has emerged in the process, the “live transfer” lead.
In a live transfer lead, the customer is profiled with an online website or through a call in number and is then transferred to an agent who has agreed to purchase a lead from the lead company. The benefit with live transfer leads is that you can speak to them on the phone immediately after they've been profiled, allowing you to make an instant connection, and hopefully, a sale.
The second type of lead is a pure information lead where a lead profile is created with the customer's information and is then sent to the agent. The agent can them contact the lead and discuss options for insurance. This type of lead is slowly becoming extinct because of the “dead time” between the request for information and the reply from the agent. In many cases, the leads have already purchased insurance elsewhere.
Start with Free Leads
Everything in the insurance business is highly profitable, from the sale of the insurance itself to the leads brokers sells to agents. As a result, lead generation companies are often willing to provide a list of free leads to prospective customers. After judging their quality from the viability of the lead list, you can determine whether or not you'd be willing to invest your own cash into purchasing future insurance leads.
Take into consideration that not all advertising campaigns are immediately profitable, an oversight many small business owners tend to accept. Instead, any advertising, including direct lead purchases, may prove to be profitable over a period of months or years, which should be very much acceptable.
If on average your customers stayed with you for 10 years, and it took 2 years of premiums to reach breakeven point, you would earn a 400% return on every dollar you put into buying leads. Those are profit margins worth waiting for!