5 Deadly Mistakes Agents Make When Buying Insurance Leads

It’s true. Sales requires qualified prospects. It can be difficult and expensive to find them. This is why so many companies offer insurance leads. A true lead in insurance is someone who is actively looking for insurance.

These prospects are now available online like never before. Over 142 million people searched for keywords related to insurance in just one month, and more than 31 million people searched for quotes on insurance (Google keywords-July 2009). It is up to you to decide which company will provide the best results.

You can only answer this question. However, there are common mistakes that you can avoid to help you avoid costly mistakes when purchasing internet insurance leads.

The #1 mistake: Not receiving free leads to test the service. A company that provides insurance leads should not claim to have the best leads. They should give you some leads to use. This will give you a chance to see the leads in action without having to commit. Be careful, though, as there are companies that claim to provide “free” leads but have strings attached. This is mistake #2.

Mistake#2 – Committing to a long-term contract and/or a minimum purchase . Many companies will offer “free” leads but ask you to make a minimum purchase, or commit to a long-term contract. If you are not certain that the leads you purchase will turn a profit, you should never agree to anything.

Mistake #3: Thinking that there is an exclusive lead. This could be because they charge 4 to 5 times more than companies selling non-exclusive leads. It would be great if this was true elimination of competition. It is impossible to guarantee that a lead will be exclusive. The company might sell the lead once, but they cannot control the consumer. People, especially online, love to compare prices and shop. Referrals are a good way to do this. It is better to spend money on referrals than on exclusive leads. Instead, focus on improving your service and offering more competitive policies.

Mistake#4 Buying “vintage”, “aged” or old leads . Others believe they can save money buying recycled leads. This is a mistake as most of these leads are not in the market for insurance. Although these leads can be useful for mailings or drip campaigns, it is quite expensive to use an old lead for a list. You will also have to wait as the majority of people you reach out to may already have a policy. You should ensure that you receive your leads immediately after purchasing internet insurance leads.

Mistake #5: Using different lead sources. You should always test and compare your results. Track everything. This includes the time taken to acquire a lead, follow-up on it, and the cost of acquisition. Keep your eyes on ROI and explore other lead sources. Set minimum performance standards and eliminate any sources that don’t meet them.

These are only five common errors. You should also be aware of other scams. Companies that offer incentives and prizes in return for a quote request. It is a good idea to get insurance leads from companies that are open to giving you a trial run before you commit to anything. This will allow you to test their leads before you commit your hard-earned cash.