Health Insurance Leads for Agents
Recent statistics and polls have shown that nearly 50,000,000 Americans (roughly 1/6 of the population) currently do not have an active health insurance policy. As more people realize the importance of a good health insurance plan, new potential customers are looking for health insurance plans each day. A potential customer (also known as a lead) can only be useful to a company if they fall under a specific set of criteria, which is often referred to as lead eligibility criteria. This criteria must be established during your initial communications with the lead generation or marketing firm that you are dealing with. As an insurance provider, agent, or company, the first step that needs to occur before you can buy health insurance leads is to find a capable professional marketing firm that is effective at soliciting new clients and targeting specific demographics and audiences. The following tips should provide all of the information needed to effectively buy health insurance leads.
How Are Health Insurance Leads Generated?
Internet marketers and local lead generation firms use a variety of refined tactics, techniques, and methods to solicit potential customers for their clients. Usually, clients are billed on a per lead basis (in which the marketer/lead generator charges a specific dollar amount per lead). Before generating leads the marketing or lead generation firm will attempt to establish a set of eligibility criteria (which all leads must adhere to be eligible for payment). The most popular methods of lead generation used by online marketers and local lead generation specialists are online business directories (such as Google or Yahoo business directory), search engine optimization/website promotion, phone book advertising, newspaper advertising (regional classified ads), online classified ads, brochures, e-mail advertising, and even billboard advertising.
What Is the Cost per Lead?
The cost per lead (also commonly referred to as the CPL) varies greatly depending on a variety of factors, including how targeted the audience is and what type of product or service is being marketed to them. Of course, local leads have a higher chance of converting and therefore cost more per lead. On average, the cost per lead can range anywhere from $2-$20 or more. While it may seem somewhat excessive to pay $20 for a single lead (which may or may not convert), by figuring out your current conversion rate you can allocate a marketing budget that will allow you to create a lead generation structure that is profitable in the long term. For example, if you know that for every 100 visitors that come to your site at least two people purchase your product or service (you have a conversion rate of 2%), and your product or service costs $200, then you know that for every 100 leads you make an average of $400. Thus, it would be feasible to pay two dollars per lead, as 100 leads ($200 worth) would ultimately generate about $200 in profit (a 100% increase).
The Importance of Targeted Leads
Nearly any experienced Internet marketer or website owner knows that there is an abundance of web traffic that can be absorbed in nearly every niche online. However, there is a huge difference between soliciting general web traffic and bringing targeted audiences to well optimized webpages. If the leads are not highly targeted, then you can almost guarantee that you will be wasting a significant amount of money on unnecessary lead generation. For example, if you own a car dealership in Atlanta, Georgia, you would not want to pay for leads that live in Kentucky or Tennessee, as there would be a very low chance of such leads converting into sales.