6 Things to Consider Before You Buy Insurance Leads

Fran Majidi October 14, 2019
things to consider before buying insurance leads

You probably already know that big carriers buy leads -- lots of leads. So do larger agencies. You know that to boost a bottom line buying insurance leads is essential. You’re now wondering if you should also buy leads and if so how to do it in a way that works. While there is no strict formula for success with purchased leads, there are a few things you should know even before you set out to test service to see if it’s right for you.

Follow our tips below, and you’ll get the most for the money you spend on insurance leads.

1. Don’t Pay Too Much

If a company is making outrageous claims about success rates and they set the prices on leads very high, you should be wary. You only need to buy competitively priced insurance leads. The leading insurance tech companies are all selling leads in the same price ranges, and for a reason.

There is also a way to work around a tight budget. You have different kinds of leads to choose from, including exclusive leads, shared leads, live-transfer calls and data leads. Each type of lead has a different price point, and it is standard to pay much more for an exclusive lead that no other agents receive. Live-transfer calls also cost more than data leads, but that doesn’t mean that data leads are not valuable.

It’s important for you to know all the options there are before you decide which type of insurance lead fits your schedule and budget. An account manager will answer all your questions to help determine which type of lead will bring you the best results.

2. Buy Enough Leads

One of the biggest mistakes insurance agents make is to buy very few leads in order to test them out. This strategy doesn’t work because you need a sizeable sample to test properly. You also need to buy enough leads to continuously bring new business to your agency.

How many insurances leads you buy depends on the size of your agency too. On average it’s a good idea to buy 10 leads per day per agent or per producer as you test out the lead source you are using. You can’t restrict yourself to one or two leads per day when testing. Some leads will be better than others too. This is, after all, a game of numbers!

After you’ve tested a nice-size batch of leads, the analysis begins. By working with an account manager, you should look closely at your successes. Take note of their location, income, age, etcetera. In the beginning, we advise against buying too many filters in the quest to find “the perfect consumer.” You first have to see what brings you business before you add filters on your lead search. More on this below:

3. Don’t Restrict Yourself

Think of the initial batch of leads you buy as test leads. First start by not adding any filters, unless you’re restricted by where you can sell. Avoid restricting your leads down to one town or city, however. You may be surprised to find that you sell the best in areas you weren’t even considering selling it until you bought leads. It happens all the time! Only through trial and error will you learn what your ideal demographic is. At that point, you may consider adding filters with the help of your account manager.

You also want to buy enough insurance leads to make your effort effective. No one said that every lead (or every other lead) is guaranteed to yield a sale. But you may find that you score with one out of every four or one every seven! Agents are often very surprised by what they learn about their success with leads.

4. Keep the Competition in Mind

Remember that your competitors are probably also buying insurance leads, as most agents do these days. The reason you need to think about these other agents (and their producers) is that you have to consider what’s best for you in terms of buying shared or exclusive leads. If you know your rivals tend to offer lower prices with a different carrier, it may make sense for you to buy exclusive insurance leads. Otherwise, you may overlap with them, and if they have that edge over you, it’s not a bad idea to pay a little bit more for a lead you don’t have to wrestle over.

Live-transfer calls, like exclusive leads, are pricier too, but you’re actually being connected with the client after a thorough pre-screening. The work is done for you, and the consumer is invested in buying insurance even more, after spending some time on the process before being transferred to you.

5. Keep Other Agents in Your Company in Mind

Make sure that you note which company you’re with when you sign on with a lead sales firm. Also, make sure other agents in your company assign their carrier settings as well. You should not be getting the same leads if you note this in your settings. If you don’t, you’ll be creating unnecessary competition for yourself.

6. Avoid Giving Quotes Prematurely

As soon as you give a quote, you’re stuck, especially if you quote the prospect before verifying some information that may change the rate entirely. Even if you get all the information as accurate as possible, you still don’t want to give the quote until you get some information out of the way first. Why? Because as soon as you give a quote the conversation becomes all about price. There’s a lot more to the coverage you’re offering than price alone, so make sure to go over the important parts of what your client needs before showing the client the sticker price.