Demystifying Insurance Online Leads

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Insurance agents are always looking for new ways of opening conversations with prospects. Online lead frenzy has taken over the market for five years. It is receiving mixed reviews. Every product is marketed as the solution to all of our problems. Online lead companies advertise the same way as any other company. As consumers, it is our responsibility to examine their claims and find the happy middle.

Lead companies will portray the image that leads are waiting to be offered insurance quotes. This is false, as insurance agents quickly discover. Online lead companies also claim that buying leads reduces competition, as the lead is sold only to a few agents. These claims are misleading and do not reflect the reality of how online leads work.

Prospects who are looking for information online can submit leads. The prospect will most likely walk away from their computers and continue their day. It is their job to get them the quotes. Leads can also be sold to multiple agents. While you may be the only captive agent in your local area, it is possible to sell leads to other agents. These companies have access to computer systems that instantly send out quotes, call center operators and electronic autoresponders to get in touch with prospects. Do your research to find out which agents are available from different providers in your local area.

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These national providers will be able to send you a very low quote right away. It does not take into account your credit score or any other factors. This is a teaser offer to get people to call or email the company and give them a fighting chance. The prospect will be drawn to their customer portal even if the quote is higher. Know your competitors. It will help you to counter their offer and become a resource for your prospect. Try a different approach when reaching out to prospects. Personal agents can be more persistent, accessible, an insurance educator, and a client advocate. They can also provide personal service that is unavailable to an insurance powerhouse. Some people don’t like the canned service offered by national insurance powerhouses and are ready to change. Every prospect is unique. They are satisfied with the 10% close ratio at the national level. They are not as dedicated to the business and will approach it differently than individual agents. Remember that 90% of the business is still available to the industry despite their 10% close ratio.

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Realize that online leads have changed the game of selling. Today’s agents must use their marketing skills and connect with prospects to reach these prospects. These leads are very lucrative and have high close ratios. Agents need to be able to compete in this sector of the market. Technology today gives us tools such as a lead management system that will help us be competitive. Automatic importing of leads is a way to stop data entry. You should look for automatic importing of leads (stop data entering those leads!). These tools will help you stay consistent in your follow-up, keep your lead documents organized and maintain your investment. Don’t just throw away the $12.00 lead after 30 days.

Look at the insurance powerhouses and get smart. Are you a powerhouse to succeed in insurance? No! Your clients will get the best of both the worlds if you provide the ease of service, quick responses, continuous follow-up, and service. Your business will experience unprecedented success and referrals will skyrocket. Use these online leads with caution…keep a level head and don’t forget to sell!

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