Agents who sell insurance are constantly on the lookout for insurance leads. Many feel that trying to stumble on a person or small business who needs exactly what you are selling is leaving a little too much to chance. These agents generally practice lead buying.
Lead buying can work in a few different ways. Some companies that sell leads cold call prospective customers until they find someone who is willing to talk to an insurance agent and receive a free quote. The company then passes that person’s contact information on to the agent. Other companies that sell leads rely on Internet leads. They have an online form that allows insurance leads to “opt in” and provide contact information if they would like to talk to an insurance agent. Again, the information is passed on to the agent who is buying the leads for follow up.
There are a few good reasons to purchase insurance leads. One reason is that you can save time. Instead of making cold calls yourself and talking to twenty people who aren’t interested in insurance, you can use the leads provided by the company and spend your time talking to three or four people who are interested in what you’re selling.
A second reason is that lead buying is more cost effective than open advertising campaigns. If you pay $500 to put an ad in the paper, there’s no way to tell how many people who view that ad will have any interest at all in purchasing insurance. If you spend $500 to purchase Internet leads, however, you can be sure that every single lead with whom you interact has expressed an interest in obtaining insurance.
Finally, if you are using a reputable lead company, buying leads can result in a higher conversion rate. Again, you don’t have to spend your time trying to convince someone that you’ve reached at random that he or she needs insurance. The leads provided to you by the lead generation company already know that they need insurance; your job is to convince them that they need your insurance.
Purchasing telemarketing or Internet leads certainly isn’t the only kind of marketing you will want to do as an insurance agency, but it can be a powerful tool in your sales arsenal.