The True Value of an Insurance Lead

As and agent, your bottom line is one of the most important performance indicators to your business, but are you considering all the factors?

In the lead business, we often hear a lot about agents return on investment (ROI) or their cost per acquisition (CPA). Though our communications, we discovered something that most agents don’t realize when it comes to calculating ROI; the need to measure renewals. 

As part of ROI, initial commission is often not the only commission is you will receive from that lead. Granted, not every consumer will resign come the following year, but a considerable number will. The question is, how can you maximize the value of a lead on a more consistent basis?

Our recent survey has highlighted a potential answer to this question: Selling multiple products. 80.8% of agents sell multiple products as part of their business, and most of those agents are 8+ years in the business! By selling multiple products, you offer your clients the possibility to be a one stop shop for their insurance needs.

By doing this as part of your business, every lead’s value increases significantly as they go from initially needing health insurance to needing life insurance down the road, or needing medicare insurance but wants to add final expense a few years later.

Longevity and renewals are all in the name of the game when it comes to selling insurance, and the leads are not just worth their initial value, they hold value for years. Think about that next time you are calculating the value of a lead.

Dream large and small, but do something every day to make the dream reality

Having dreams about a successful insurance agency is the best way to build for the future. Part of those dreams must include how successful you shall be working and converting leads. Dream large. Dream small. But remember to take action on those dreams, no matter what size they may be.

If a dream feels overwhelming and shuts down your will to move forward because it seems impossible to achieve all at once, then you should break the task down. Do it one small step at a time. When you do one small step at a time, the large dream becomes closer to a reality.

If you sell one policy a day for a week, dream about two policies every day for the next week and figure out what you need to do to achieve that. If you need to change the kind of leads you buy, do it. If you need help calling your leads, get it. If your price needs to be more competitive, lower it. All dreams are achieved by making them happen in smaller steps to reach the pinnacle of success.

Summing it all up to sell insurance

If you don’t have it all together when you make calls to leads and remember that each step toward selling insurance needs to be followed diligently, you may not be as successful as you would like to be. It is hard work to call people you do not know and try to sell them insurance. They may feel it is too expensive, even though they may well have asked for an agent to call them with information.

The thing to remember when calling leads is that you are running a business and in order to keep running it successfully, you need to make your calls and convert those leads. Leaving hot leads in your mailbox for a couple of days diminishes the chances of a sale and increases the chances that the prospective customer thinks no one is going to call.

You need to be very organized when you prepare to make calls to insurance leads. Have everything right at your fingertips: your script, any sales literature pertaining to special policies, Medicare information if you specialize in Medical supplements, information on the latest trends in the insurance market that may affect a consumer, a ready smile and a drive to succeed. Yes, you do smile when you are on the phone. It’s infectious and can be hear by your potential customer.

Everyone has bad days, but leave those angry feelings at home or at the door of your business before you pick up the phone to call. You are marketing yourself, and you want to do it the right way. You must know your policies inside out, how they can be adapted to buyer’s needs, what carriers can do special exceptions for a potential customer, and how you can make your lead’s life a lot easier and safer with the right insurance policy.

The more you work on your selling skills the better you get at selling insurance. It just takes the will, drive and dedication to make it all come together and build your business.

Got an insurance lead? Don’t just call, use social media to make contact

Calling an insurance lead is usually the first step to getting to know your potential customers. It is, however, not the only way to keep in touch with them once you have made the initial contact. These days a large number of people use social media for a variety of reasons, and if it can leverage access to that, you have another powerful marketing tool at your disposal.

Social media is highly influential, easy to use and a great way to send information, other than by email. Of course it is best to have an already established insurance business presence online on social platforms like Twitter, Facebook, Google+ and LinkedIn. The more you have “out there” that shows who you are and what you sell, the more credibility you acquire.

Social media also allows you and your insurance to further follow up with leads, build stronger and better connections with potential customers and your target audiences. It is also a smart move to follow others and learn their preferences, get to understand what they like and prefer, how they live and what they may need in terms of insurance. The more active you are online, the more you attract new customers. And those leads you are working will pay off in multiple ways.

How insurance leads expand an agent’s business

When first starting out selling insurance, it’s sometimes hard to know where to start getting leads. They don’t grow on trees and no one wants to hit on all their family members and still get invited to Christmas dinner. The best place to start is to contact a lead generation company that has a good reputation and discuss your needs with them. That is the beginning of the foundation of your business. Why? Because once you have a constant supply of insurance leads, nothing can stop you from making your agency a huge success.

You got into this business because you wanted to help people find the right kind of insurance that is uniquely suited to them and to make money, after all, an insurance agency IS a business. So, by investing in health insurance leads, you have a constant supply of people to sell policies to. Work them the way you were taught in training and go above and beyond the call of duty.

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Life insurance leads are easier to find than you may think

While you may have some skepticism about finding life insurance leads in a market that is struggling to maintain some sense of balance in the face of the economic mess the country is in, there are people that do recognize that this is actually the best time to buy life insurance. Just like a depressed real estate market is a good time to buy homes for sale at a profit later.

The market is ripe for agents selling life insurance to savvy buyers who recognize that now is the time to get insurance to protect their families if something happens to them.

Leery about buying leads? Not sure whether you should choose shared or exclusive leads? Largely, that depends on what you want to accomplish and how fast. Shared leads may take forever and a day to pay off in any substantive way. Exclusive leads could pay off much quicker, because they are only sent to one agent. It often makes sense to try both ways to get an idea of what works best for you.

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