If you’re trying to decide if you should buy insurance leads, here are five essential factors to help you decide.
Author Zig Zagler once said, “You are out of business if you don’t have a prospect!” Every agent knows how accurate this statement is. So, is it okay to buy insurance leads when all other lead generation strategies aren’t working as they should?
Buying insurance leads comes with various benefits. For example, you can ensure prospect quality, boost conversion rates, and spend more time on high-value activities. However, it’s an investment, so you should weigh its pros and cons before deciding.
Beyond that, however, is the fact that when you buy insurance leads, you need to know what you’re getting. Not all lead providers are the same, and you want to get leads that fit your distinct business needs.
5 Factors to be aware of before you buy insurance leads
The most crucial factor to consider when you buy insurance leads is their exclusivity. Some providers offer exclusive prospects, while others sell shared ones. You might also come across companies with both exclusive and shared options.
- Shared leads: Multiple agencies can purchase shared lists. If you choose this option, you will still get quality prospects, but you also have to worry about other competitors fighting tooth and nail to close the sale.
- Exclusive leads: You can also opt to go exclusive. These leads typically cost more, but only you will have access to the prospects’ information. Apart from getting high-quality leads, you also won’t have to worry about other agents closing in on your clients.
If you have the budget for it, go for exclusive leads. They can drastically boost your return on investment (ROI), conversion rates, and sales.
2. Prospect quality
Naturally, lead providers will claim they offer high-quality leads. However, curiosity is one of the qualities of great salespeople. Remember, superior prospects for one company might not add much value to another.
Before purchasing leads, ask about their sources. Did the provider use inbound or outbound tactics? How did they qualify the leads? There’s no right or wrong answer here, but you should still ask these questions to identify which strategies will work for you.
The best leads are those who show interest in your products and services or similar offerings. These individuals or firms are more likely to become customers than other prospects.
Consumers and corporations should buy their auto, home, and life insurance in the state they officially reside in. If necessary, they can purchase multi-state health insurance plans.
For this reason, it’s best to ask the provider if you can target leads based on geo-targeting techniques. While insurance agents can sell policies across various states, they need a license in each area they want to sell, and the products should be available across state borders. It’s a complicated process that not many salespeople would undergo.
Simplify your work by focusing your efforts on individuals and firms in your location.
4. Return on investment
When calculating the ROI of your exclusive leads, weigh your costs and how much you can earn from the purchase. Typically, you will have to spend more for high-quality exclusive leads.
You can compute ROI using the following formula:
(Sales Growth – Purchase Cost)/Purchase Cost = ROI
A good marketing ROI achieves a 5:1 ratio, meaning you earn $5 for every dollar you spend. Anything below 2:1 is not profitable; it will likely be your break-even point.
If buying leads will yield a good ROI for you, there’s no reason not to try it.
5. Return policy
Lead providers should be confident in their prospect quality and offer a return policy for unsatisfactory leads. Even if they take extensive measures to filter bad leads from their pool, some will slip through. It happens even to the best of companies.
However, the difference lies in how they treat such leads. Before working with a lead generation company, ensure it walks the talk. A reliable provider should offer refunds or credits for low-quality prospects.
Ready to buy insurance leads?
If you’re ready to buy insurance leads, the next step would be to find the ideal provider. It’s the fastest, most efficient way to fill your pipeline with quality prospects.
However, remember that not all lead generation companies are the same. As mentioned in the article, choose one that offers high-quality, exclusive leads, geo-targeting, reasonable ROI, and a return policy.
You can find all this and more at HBW Leads. With HBW Leads on your side, you produce 13% more quotes than other competitors — what are you waiting for? Request a customized package now to smash your goals.