Internet insurance leads might be popular, but they aren’t doing you any favors. Here’s why it’s time to toss them.
On the surface, internet insurance leads seem like they offer plenty of benefits for insurance providers. You pay a third-party provider, and they do all the work of generating possible leads and sharing them with you. Then, all you have to do is call and close the sale.
Only, it’s not quite that simple. So many non-exclusive internet insurance leads are little more than a collection of people who entered a contest or signed up for a newsletter or free download. “Want to save hundreds on your auto insurance? Get this FREE download right now!” Who wouldn’t sign up for that?
But a free download that could save you hundreds is very different from actively searching for insurance, whether that’s home, life, auto, or business. What does that mean for you? Certainly, you could get lucky and tap into a flow of prospects ready to buy from you.
The reality, however, is that many internet insurance leads are poorly vetted, if at all, and your success rate is often more disappointing than encouraging.
Call Logic’s auto-dialer and call management software offers dozens of helpful tools to increase your success and simplify your daily tasks. Call for your free consultation today to learn more!
Discover 7 reasons to drop the internet insurance leads and move to telemarketed leads
1. Higher ROI. There’s nothing wrong with buying leads. However, you want to be smart about spending your money. While exclusive telemarketed leads are more expensive, the result is generally a higher ROI. For example, if I spend $100 on 100 leads and five of them convert, I’m paying $20 per lead. On the other hand, if I spend $100 on 20 telemarketed leads and 10 convert, the cost is $10 per lead.
2. Less competition. Many internet insurance leads are non-exclusive. That means other insurance agents and companies are buying the same leads you are. Going back to the previous example, if you buy 100 non-exclusive leads, you could have multiple agents vying for those same five insurance buyers, which also drives up your cost per lead if you don’t win all five of them. With exclusive telemarked leads (or those you call and qualify yourself), no other agent is getting the same list of prospects. They are yours to convert.
3. Higher conversion rates. Looking again at our example of 100 internet insurance leads, if you have five conversions, your conversion rate is 5%. That’s not a bad conversion rate, really, but think about all those calls you’re making. Do you want to make 100 calls and only sell to five of those people? On the other hand, your telemarketed leads are rockin’ the conversion rate. Ten sales for 20 calls? That’s not too shabby at all! Of course, in the real world, things are different. These are just random numbers. But the idea holds. Higher quality leads give you higher conversion rates, which, in turn, lowers your cost per lead.
4. Higher quality leads. This goes back to the source of lead generation. The quality is bound to be low when you’re collecting what is essentially a random list of names and numbers. There’s no lead qualification or even anything beyond a fleeting interest in your product. Telemarketed leads, whether you buy them or get them on your own, are usually pre-qualified and have an actual interest in learning about your insurance products.
5. No dead ends. Who among us has not signed up for a free download or information and made up a name and contact info just to get the item in question? That can frequently happen with internet insurance leads. There’s no incentive for people to share their actual contact information. By nature, telemarketed leads are at least real people with real numbers. And you know this because they’ve already been contacted.
6. Guarantees. With exclusive lead providers, you’re much more likely to have some guarantees that the leads are good. Lead providers may offer a credit or refund for bad leads. By contrast, shared internet insurance leads often fall into the “you get what you get” category.
7. Filtering. Insurance can be very regional. You may only be licensed in specific locations, or you might specialize in something like commercial fishing boat insurance, which might come in handy in Hawaii, but not as much in North Dakota. With telemarketed leads, you can often filter your lead results based on things like location.
There’s no reason to make your sales job more difficult than it needs to be. Why compete and get frustrated over low-quality leads when you can opt for telemarketed leads. Whether you buy them or get them on your own, you’ll find you have a much better rate of success.
By the way, if you are interested in buying double-verified leads, get in touch with our friends over at HBW Leads.
Call Logic’s auto-dialer software has the potential to transform your insurance business. Find out how with a free demo right from the comfort of your home or office!