5 Deadly Mistakes Agents Make When Buying Insurance Leads

5 Deadly Mistakes Agents Make When Buying Insurance Leads

It’s true. Fresh qualified prospects are essential to sales. Finding them can be the hardest and most expensive part of the sale. That is why there are so many marketing companies offering insurance leads. For the purpose of this article a true insurance lead is defined as a real prospect that is actively searching for insurance.

The internet is delivering these prospects as never before. In just one month there were over 142 million searches for keyword variations of insurance and over 31 million searches for insurance quotes (Google keywords) The question is which company will produce the best results for you?

Only you can answer that question, but there are some common mistakes you can avoid that will help you from making costly mistakes when buying internet insurance leads.

Mistake#1: Not getting free leads to evaluate the service. If a company providing insurance leads claims that they offer the best leads, then they should be willing to back it up by giving you some to work with. This will allow you to get a hands on feel for the leads without making a financial commitment. You should be careful though because there are some companies claiming to give “free” leads, but with strings attached. This leads me to mistake #2

Mistake#2: Committing to a long term contract and/or a minimum purchase. Some companies will offer you “free” leads, but require you make a minimum purchase or that you commit to a long term contract. You should never agree to get locked into anything unless you are absolutely certain the insurance leads you will be buying will make you a profit.

Mistake#3: Believing there is such a thing as an exclusive insurance lead. Companies selling so-called exclusive leads will charge you from 4 to 5 times as much as companies who sell non-exclusive leads, which would be great if it truly eliminated competition. The truth is no lead can ever be guaranteed as exclusive. Sure the company may sell the lead only once, but they can’t control the consumer. Consumers, especially those on the internet, like to shop and compare prices. This is true even with referrals. Instead of wasting money on exclusive leads it is better to focus an improving service and offering more competitive policies.

Mistake#4: Buying old, “aged” or “vintage” leads. On the other end of the spectrum are those who think they can save money by buying old recycled leads. This is a mistake because in most cases these people are no longer in the market for insurance. These leads may be good for a drip campaign or mailing, but using old lead just for a list is pretty expensive. Plus you will have to wait because chances are the people you are reaching out to just purchased a policy. When buying internet insurance leads, be sure they are delivered in real time.

Mistake#5: Not comparing results. No matter how good you think your lead sources are, you should always continue to test and compare results. Make sure you track everything, like the time spent to secure a lead and follow up on it, the cost of acquiring a lead and your closing ratio. Stay focused on ROI and try different lead sources. Determine you minimum standards for performance and dump any sources that don’t measure up.

These are just 5 common mistakes. There are other games you should watch out for. Like companies who offer incentives or prizes to consumers in exchange for their quote request. Really the best thing you could do is to use companies who are willing to give you some insurance leads to try out without making a commitment. That way you can see how well their leads work for yourself before dishing out your hard earned cash to make a purchase.

By Michael Williams

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