Let’s face facts. Whether you love them or not, internet-based insurance leads will be around for the long haul. As I mentioned in previous articles, almost a third of all insurance shoppers go online to compare quotes. This trend is only growing. It is impossible to resist it. We only have two options. Either we can shut our eyes and complain, staring at empty plates, our stomachs growling, or we can face the facts and create a plan to get a piece of the pie.
The internet offers huge potential for me personally, and I’m not the only one. Major insurance companies are turning to the internet, and even creating sales processes around online leads. Here are five simple steps to help you get your share of the pie if you’re looking to make a splash and grab a slice.
Step 1: Do the math. I am amazed at how few agents take the time to do the math. Let’s assume you sell all types insurance. The average annual revenue per client you get is $1000. This includes cross-sells as well as up-sells.
How much would you make if you closed only 3% of the 100 leads you purchased each week, and you were able to buy them at $10 per week? It would shock you to learn that this would result in a net profit 104,000
Imagine if you had half the leads but could convert 1% more. What would your annual earnings be? A net profit of $78,000 would be made if 50 leads were sold per week for $10 each.
Let’s suppose you can only get 20 leads per week but are good at selling and convert 10%. How much annual income would this produce? You would get a $93,600 annual income using the same parameters as in the previous examples.
Step 2: Develop a competitive edge. Your income is directly affected by your conversion rate. You will earn more money if you increase your conversion rate. You need to have a competitive edge in order to increase your conversion rate.
There is no such thing a unique lead with the internet. Even if the lead provider sells it once, the consumer will likely shop on multiple sites. You need to be different from the rest. This can be done by asking the question “Why me?” You can put yourself in the shoes of an insurance salesperson and ask them why they choose you over others. You should have a solid answer.
Once you have a solid answer, make sure to communicate it to all prospects in your emails, sales pitches, and other communication. This will make it clear to prospects that you are who you say you are and what you stand for.
Step 3: Find an excellent internet insurance lead provider. It can be tricky. There are many good and bad lead providers. However, there are also many shady. The bad reputations of unprofessional companies have caused some to lose their good reputations. I recommend that you only work with companies who are willing to give you some leads free of charge. But be careful. You should ensure they provide enough insurance leads for you to get a feel for them. You’ll probably go through a lot of leads before you feel comfortable with them. A good internet lead provider will offer you at least 20 leads for free. This will allow you to fully understand the situation before you pay.
Step 4: Measure your results. Keep track of every lead and keep a log. You should also track how long it takes to close a sale. If you have 10 leads but only one converts, what time did it take to close that sale? This would also include time spent following up with the 9 leads who didn’t convert as well as those that did. Next, calculate the time value and add that to the cost of acquisition. After you have calculated these numbers, compare your sales results with those from other marketing and sales efforts. This will allow you to determine if your leads are effective and where you should focus your efforts. You should also try out different lead providers to gauge the results and determine which ones offer the highest return on your investment.
Step 5: Improve your sales process to increase results. You will begin to notice patterns as you work with leads and measure the results. These patterns can reveal a lot about how your sales process works. Are you reaching prospects too late? Is your sales team losing a lot of prospects after the first call? Take a look at the areas in your sales process that are causing problems. These areas should be addressed. Although it may seem obvious, many agents don’t take a scientific approach and end up suffering the consequences.
It takes effort and time to create a system that works. Keep working and be patient. These 5 steps will help you to see improvement and make working with internet leads profitable.