Two main reasons are responsible for high turnover among insurance agents. First, agent recruiting managers lack the ability to distinguish between an order-taker salesperson and someone who can adapt quickly to the needs of selling insurance. The 44% of agents who have sales abilities will also be leaving because they don’t know how to save their lives. It is important to understand the difference between true and false leads before you proceed with the only thing that has been proven to work.
1. The 100 man list leader. The 100 man list is the one your agent manager required you to complete before selling. It contains 100 names, addresses, phone numbers, and phone numbers for friends, family, neighbors, relatives, businesses, and other people you know. It is so overwhelming that you may have added names from local directories to complete the form.
The 100 man list does not represent a real lead list. They are people you try and coax to buy insurance even though they don’t want it. Some will buy insurance because they feel sorry or to help you get started in your career.
2. Referrals. Your sales manager will explain that you should get at least two referrals for every appointment. If you sell, you can get even more. You must also have your prospect call you immediately to set up an appointment. This is where the pressure gets too much! This is not how to get leads but how to make friends.
3. Orphan policy owners receive company leads. These may sound like leads at first glance, but once you examine the information, they are not. It is usually an older client who has lost contact with their original agent. Every few months, the client’s name is changed to new agents. He has repeatedly said no and refused to be interested. It was a waste of time and gas.
4. A phone directory is handed to you along with a canned sales pitch that will address every objection in your way of getting an interview. How likely are you to blindly call someone looking for insurance? You will find the answer after many days. The chances of you finding the answer are slim to none.
5. Your company manager is aware that you are struggling. The agency head has given him permission to give you a “can’t lose” method. You are allowed to submit 50 names each week on a form sheet and the company will mail them information about their product. You receive the leads and the company will follow up by phone on any sales pieces. It results in a few (spin the Roulette wheel) responses and marginally better phone responses.
This is, at the end of the day, the analysis. You have ample opportunities to sell these products because you were able to use all of the company-provided methods of obtaining leads. You feel guilty for becoming financially desperate and you may need to consider a different career. You will be in a similar situation if you switch to another agency.
These lead generation techniques were not really lead-generating methods, even though they may have been provided by companies. The tools for success were given to you.
A lead is an interest response from someone who wants to learn more about a product. It must be positive and have the potential to pay premiums. You can’t ask for more. This can be used as a guideline for your lead procurement methods.
You will not likely receive a lead from an insurance agency. Telephone prospecting is wasteful and sending sales pieces to the wrong clients can be detrimental.
It is not enough to try and be all things to all people. Decide what product you are going to sell. Next, use the internet to locate a list broker or compiler who can help you find this list.
A short letter explaining why the client should purchase your product and how it will benefit them is a good idea. You should spend about four times as much time on this, with some outside help, to make the headline and body irresistible. It is important to get enough responses from these carefully chosen potential clients. For every 1,000 names that are sent by bulk mail, expect to pay around $600.00. Don’t expect your agency to pay you back.
Although you may only get 10 responses, these are still hot leads. You can now sell if you are able to. Make 50 calls to follow up during the week. Bold! Ask them to tell you when the best time is for your product. You will receive your $600.00 back and a significant return. You can also add $600-$1200 more to the account and it will continue rolling.