A Complete Guide to Working with Internet Generated Insurance Leads
Being an exclusive insurance agent with your own agency, entails a lot more than just retaining policyholders to ensure long term success. While retaining policyholders is an essential piece of the process, getting customers is the first step! So how does a private insurance agency enlist customers? The answer to this question varies. In archaic times, insurance salesman went from door to door with lengthy presentations in effort to sell policies. Nowadays, you may see an ad on the local newspaper or an insurance card neatly placed under the windshield wiper of your car. While neither method is wrong, none of them give insurance agents the most productivity. Therefore, internet generated insurance leads are the best option! Here is a complete guide to everything you need to know about internet generated insurance leads!
What Are Internet Generated Insurance Leads?
Basically, internet generated insurance leads are lists of prospective clients that are sold to insurance agencies. The advantage to using internet generated insurance leads as opposed to achieving clients through another method, is the fact that they save time and resources. Imagine spending countless hours on marketing to advertise your company and the products you offer. No doubt, that if you are aiming for a successful company; then proper advertising will take a lot of time and money. However, even with all your advertisement efforts there is no way to guarantee that you will gain policyholders. Unfortunately, this is a major mistake that companies make: overspending in areas that don’t bring the best level of efficiency to their business. Internet Generated Insurance Leads allow agencies to save money, time, and resources by simply buying a list of potential clients instead of trying to generate clients themselves.
Why Buy Insurance Leads?
If you still can’t decide whether buying insurance leads is the right move for you, then consider a few things first. As stated before, getting started as an insurance agency is very demanding and is also a challenge that most owners fail. Why? Because the methods to generate customers will eventually fade out. Referrals from the people you know is a great way to build clientele, but sooner or later it will come to a dead end. By the same token, the methods of using social media, local advertising, and internet marketing are way too flaky for an agent to be solely dependent on them. Thus, internet generated leads are the method that gives surety for endless potential customers.
What to Consider Before Purchasing Insurance Leads?
As beneficial as insurance lead are, there are many companies who simply aren’t worth doing business with. Here are a few good characteristics to look for when deciding which company to buy leads from.
- Leads Per Agent – This is the most important characteristics, as it shows how many potential customers will come your way. Many insurance lead companies will provide will sell customer information to about eight insurance agents (if it is a shared lead). The more customers you have the more money there is to be made. Furthermore, being with a company who can give as many potential policyholders as possible means more cashflow and longevity for agency.
- Filter Options – The old saying, “Everything that glitters isn’t gold” is very true when it comes to obtaining insurance leads. Here is a fact: All leads aren’t good ones. You will come across customers who are no longer interested or ones who desire a product that your agency doesn’t offer. Either way it is good to have a filter option to prevent you from wasting your time. Filter options can be purchased through the insurance lead company or filtering can be done on your own through have a personal lead management system. If a filter is bought from an insurance lead, understand that the overall price of the lead will cost you more. However, filter options are highly recommended if you are seeking a specific lead type and want to save time.
- Return Options – As much as you want to avoid it; you will come across bad leads even with filtering options. What happens if you filter through the leads and are left with only a few potential customers? Can you get your money back? The thought process is no different than if you were purchasing a very expensive car. Surely, you would only purchase a car from a dealership that is able to provide a money back guarantee or a replacement vehicle. In the event, this happens you want a company who allows you to return bad leads. This is of the most importance when choosing an insurance lead company!
- Speed – This characteristic is self-explanatory. No one wants to purchase something from a company who takes forever to deliver the product. The same is true when it comes to insurance lead companies. The best tip for selecting a company with good speed, is picking a company that can provide real time leads. Real time leads ensure that you are ready and available as soon as a customer is recognized to be seeking insurance. How important is real time leads? The answer is very important! Time is money. Therefore, the difference between a few hours or even days can mean that another agency has picked up the customer.
- Delivery Options – The question every insurance agent must ask is, “How do you want to be informed of your leads? Even if you have a select method that you prefer, it is always best to choose a lead company that can send leads through all methods: email, call, text, or provider backend.
- Pricing – Pricing with internet insurance generated leads can vastly vary. It all depends on what a company charger for a certain number of leads. Here is the deal, when testing a new lead company think about what you can afford and how many clients you need. After you see the quality of lead and can close the lead, then you can determine the best price to pay based on the return.
- Free Leads and Discounts – Everyone loves to sample a product before buying it! Free leads are no different. Find a company who can let you try a few leads before you commit to purchasing it. This will also give insight as to how the company performs business. In addition, look for companies who give new buyers a discount! Every penny saved counts, when starting your own insurance agency.
All are good ways to make sure you land in the hands of a solid provider!
What Type of Leads Should You Buy?
After you’ve gone through all the characteristics to ensure a good lead company, you now must consider which type of lead to buy. Leads come in two types: shared and exclusive. Shared Leads are the most commonly used method. These leads are shared amongst two to eight insurance agencies depending on the type of lead requested and location of business. The great thing about shared leads is that you can get more information for a lower cost. The cost of shared leads are around five to ten dollars per line. The disadvantage is that you will have to deal with competition from other insurance agents. First come, first serve best suits this type of lead!
If you don’t want to be bothered with competing for customers, then exclusive leads may be the option for you. The great advantage is that exclusive leads give agents the security that the leads haven’t been approached by any other insurance providers other than them. However, there are two disadvantages to exclusive leads. The first disadvantage is that exclusive leads are harder to find. These leads are usually only available with smaller companies because they don’t have a large amount of customer information to sell. The second downside is the cost per lead. With exclusive, lead generally cost more than shared, ranging from fifteen to fifty dollars per lead.
While neither option is better or worse than the other; the decision simply rests on what type of lead is best for your company.
How Does Pay Per Call Lead Work?
Earlier, various delivery options were discussed as one of the characteristics of a good insurance lead company. Phones calls are a lucrative delivery option. Insurance leads can offer a warm transfer service to insurance agencies. This process is good for two reasons. One, it allows the customer to come to you and for the lead company to have a conversation recommending the services you offer. You can save a lot of energy from this process. Two, it gives you an opportunity to build rapport with a customer. Rapport is everything to a new agency owner. Rapport means a sell and in the long run customer retention as well. Know that having an insurance lead company transfer calls over to you, will cost you more money than other methods. Pay per calls can range from ten to twenty-five dollars. Specialized leads have the potential to cost up to one hundred and fifty dollars.
What Are Things to Consider When Trying to Close Internet Generated Insurance Leads?
Purchasing internet generated insurance leads is the beginning to making money, but closing with the customer and guaranteeing cashflow ends with you. There isn’t one factor to ensure that you will have a successful closing. Presently, there are four factors to acknowledge that can assure that you will gain customers through insurance leads!
- Customizing Your Pitch – The same seller line doesn’t work for every customer. If that were true, then it would be no need for different insurance companies; as one would suit the needs of all. The needs and desires of your customer should be the primary focus when speaking to them. Recognize what your customer is looking for, then customize your pitch accordingly.
- Be Prompt – The early bird gets the worm. Or maybe, the first insurance agent to call gets the policyholder. This factor is simple to understand and to act on. First impressions are typically the encounters that stay in a person’s mind. Ultimately, you want to be the first one (especially in shared leads) to speak to the customer. If you are first with a great pitch, then it will be no need for customers to continue shopping for other carriers!
- Stay Consistent – This factor requires explanation because it is a thin line between being persistent versus being annoying. No buyer wants to be harassed on a regular basis to purchase a product. The best way to deviate the difference is by listening to the customer. Are they avoiding purchase do to money issues? Are they too busy to talk to you? Or do they want to keep their options open? In either scenario, be available, understanding, and courteous at all times. Try asking them when they will have funds. Or buy offering them a discount or pay later option. Also, advise them that you can talk whenever they are available. If you haven’t heard from the customer, then simply call back to check in. Don’t allow your lead to grow cold, but also don’t be pushy.
- Get a Strategy – No success can be achieved unless a thorough plan is made. Depending on the size of your insurance agency, you can have one person working on contact strategy if the first contact attempt was unsuccessful. While another creates new and exciting ways to grab the customers attention.
Whether you’ve decided shared or exclusive leads, follow tips will ensure that you will close with a customer!
What Are Other Things to Consider When Working with Leads?
Potential policyholders are exactly what they are, “Potential customers”. Here are a few things to consider that will keep you on the right track while working with internet generated leads.
- Cold leads will happen. No one likes cold leads. Unfortunately, cold leads don’t give you the same information going into contacting the customer as warm leads do. Don’t lose hope; understand it is an inevitable part of the process.
- Leads can be expensive. The type of lead you want (shared/exclusive) and the specification of the leads all factor in the prices you pay. While no agent should pay astronomical prices, be prepared to budget a considerable amount for leads.
- Keep in mind that leads are shoppers. That’s the reason you came across them, because they are shopping for insurance. For this reason, don’t become unraveled if a customer wants to continue shopping after speaking with you. It is also another thing that is part of the process. Use the four factors in setting up a proper closing and this should ensure success.
The goal of any agency is to grow as quickly as possible; while gaining great revenue. Working with internet generated insurance leads, are an effective method of generating customers. The more money you can save an exclusive insurance agency, the more money you can put back into your company.