Low lead value gives me a higher volume to do cold calls on, but higher value leads let me spend more time and campaign money on each one. Can someone have me a breakdown as a insurance industry newbie where the higher volume business is, and on the other side of the coin, the low volume, high value per lead business? Thanks
What Type of Insurance is the Lowest Value Per Lead? The Highest?
- Thread starter Maew
- Start date
- 9,744
A "cold call" on a "lead"? How do you do that?
- 10,340
Im not sure what the cheapest lead is.. probably individual dental like Somarco mentioned.
Exclusive leads are always more expensive than "shared" leads.
The most expensive and highest ROI are exclusive annuity leads. They range from $40-$150 per lead. Call it $100 average.
But if you buy 10 leads for $1k.
Then land just single $200k annuity.
Then you have made $10k, and your net is $9k.
For a new agent I would suggest buying aged (1-4 months old) Term Life leads.
The majority of term life leads are people looking for a quote and wanting to think about it for a few weeks to a few months. I have seen studies that showed around 60%-70% of term quote requests do not buy until 2-3 months after the original quote request.
And with shared leads that is especially true. The prospect sends in info, then gets bombarded by 5 different agents wanting to sell them insurance. Many prospects just get jaded from the experience and end up doing nothing until sometime down the road. Even with exclusive leads they often wait a month or two to buy.
So once you buy an aged term lead, that is when many are actually ready to buy.
I would both call, email, & drip mail them.
Get set up with an outfit like Pinney Insurance who has the EZLife term sales system. It lets you do everything electronically for term sales. They also have some really nice marketing material such as videos and postcards that you can email out to a list of addresses.
Aged Term leads usually go for anywhere from $1-$8, depending on the age and if was exclusive or not.
Term does not pay renewals, but it will get money in the door and is an easy product to understand and sell.
It also will build up a book of business that you can then cross-sell to (think DI/CI/LTCI/etc.) and in a few years even convert some of the term to permanent policies.
Exclusive leads are always more expensive than "shared" leads.
The most expensive and highest ROI are exclusive annuity leads. They range from $40-$150 per lead. Call it $100 average.
But if you buy 10 leads for $1k.
Then land just single $200k annuity.
Then you have made $10k, and your net is $9k.
For a new agent I would suggest buying aged (1-4 months old) Term Life leads.
The majority of term life leads are people looking for a quote and wanting to think about it for a few weeks to a few months. I have seen studies that showed around 60%-70% of term quote requests do not buy until 2-3 months after the original quote request.
And with shared leads that is especially true. The prospect sends in info, then gets bombarded by 5 different agents wanting to sell them insurance. Many prospects just get jaded from the experience and end up doing nothing until sometime down the road. Even with exclusive leads they often wait a month or two to buy.
So once you buy an aged term lead, that is when many are actually ready to buy.
I would both call, email, & drip mail them.
Get set up with an outfit like Pinney Insurance who has the EZLife term sales system. It lets you do everything electronically for term sales. They also have some really nice marketing material such as videos and postcards that you can email out to a list of addresses.
Aged Term leads usually go for anywhere from $1-$8, depending on the age and if was exclusive or not.
Term does not pay renewals, but it will get money in the door and is an easy product to understand and sell.
It also will build up a book of business that you can then cross-sell to (think DI/CI/LTCI/etc.) and in a few years even convert some of the term to permanent policies.
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