Most insurance agents are aware of the benefits of buying leads online. Despite the fact that this is a growing trend, there are some potential problems to be aware of. Knowing both the good and bad of buying insurance leads can help you achieve more success in the future.
It is very easy to spend too much money on insurance leads. This expense can easily get out of control if you don’t know how much each lead costs, the number you are buying at a given time, and the total price. Along with this, it is essential to track your spending throughout the entire month. Neglecting to do so could result in an eye opener when you look back at how much you spent over the past 30 days.
Solution: set a budget upfront and vow to stick with it, even if you are tempted to overspend for one reason or the next.
Low Conversion Rate
One of the primary benefits of buying insurance leads online is that each one will be qualified by the seller to ensure the highest quality. Unfortunately, there is no guarantee of success. Just because you purchase leads does not mean they are going to convert into active clients.
Solution: only buy as many leads as you can comfortably handle at a given time. If you get bogged down, you may find yourself spread too thin and not providing the service necessary to improve your conversion rate.
Can’t Contact The Prospect
There is nothing worse than spending money on insurance leads, just to find that a large number of consumers are unavailable. Maybe they are not answering their phone. Maybe the phone number is a dead end. Whatever the reason, if you can’t get ahold of the consumer you will soon be frustrated with where you stand.
Solution: this is all part of buying insurance leads online. To avoid the frustration, learn more about the return and refund policy offered by the seller. Most companies are more than willing to provide you with a refund should you purchase a bogus lead.
Don’t Know which Type of Leads to Purchase
Are you interested in buying auto insurance leads? How about home insurance leads? What about another line? Chances are that you sell more than one type of coverage. This will force you to decide which type of lead to purchase. You don’t have to stick with one type, however, if you mix things up you may begin to confuse yourself.
Solution: decide which type of policy will bring the highest profit and start there.
Too much Competition
When you purchase an insurance lead, there is a good chance that the consumer’s contact information is being shared with several other agents. Most companies only sell a particular lead to a maximum of six or eight agents, but this is more than enough competition to make things difficult on you.
Solution: the only surefire way around this problem is to purchase exclusive leads. Although these cost more, you are the only agent receiving the lead.
The benefits of buying insurance leads outweigh any potential drawbacks. That being said, you should become familiar with potential problems so you can avoid them at all costs. For more we recommend readers take a look at this lead buyer expectations guide.