Lead Generation Vs. Lead Aggregation

[Elephant85]

I have done a lot of work with Insurance Agents throughout my career, and wanted to post something that is very basic knowledge amongst people who sell leads, but seems to get lost in translation for the end user of the leads, you, the agents.

Over the last 3 years, internet lead quality has drastically dropped. Why is that? Did people stop shopping for insurance on the internet? (No) Did "lead generation" companies stop paying attention to their marketing? (kinda)

What happened was a shift away from lead GENERATION to lead AGGREGATION. Leads that are truly generated on the internet are some of the best money can buy, but the problem is that a lot of the leads that come from the major "lead generators" are not actually generated, but rather aggregated from 3rd parties or affiliates for pennies on the dollar. The problem is that the 3rd party who generated that lead has no responsibility to you, the end user. Quality is certainly a focus of lead aggregators, but until they all start generating their own leads, I am, not entirely sure that claim will ever hold water.

I guess it is important for you, the agents, to understand that there is difference between lead generation and aggregation, and the difference lies in the quality of the leads you end up with.

How many of you were aware of the "aggregation vs. generation" relationship in the industry?

If you are looking for tips on how to spot the differences between the two, I would be happy to talk with you.

Thanks!

 

[CHUMPS FROM OXFORD]

Sad but true. A few years ago, very few people realized this. But the word seems to be getting out.

 

[Elephant85]

You're right, it seems to be common knowledge. I worked as the VP of Business Development for a large Aggregator for years, and recently made the jump to a new firm. The main reason was that we do, in fact, source 100% of our traffic internally. We have been working with a few large agencies and carriers for the last 5 months, and results are much better than what I saw in the aggregator space.

 

[Guest]

You're right, it seems to be common knowledge. I worked as the VP of Business Development for a large Aggregator for years, and recently made the jump to a new firm. The main reason was that we do, in fact, source 100% of our traffic internally. We have been working with a few large agencies and carriers for the last 5 months, and results are much better than what I saw in the aggregator space.

sure but generated leads cost double to tripple the price and are still sold to multiple agents (although usually less than affiliate leads).

 

[Elephant85]

Definitely a valid concern. The key, for the generator, is to take a more modest margin, and keep yourself competitive. We are definitely more expensive, but not so expensive that the improvement in performance is negated by price. The concept at my business is to make less profit in the short term, but keep my clients for the long term. Definitely a different approach for this business. Also, I think one of the biggest benefits to buying direct from the source are the savings in operating expense (your time). Think of all the time you have spent chasing leads that were recycled, incentivized, or sold 10 times. Buying direct from the lead source ensures, in most cases, controlled sharing (max 2 times with us), and clean internet marketing.

 

[Dglossoplend]

Lead Generators and aggregators are just getting more obsolete. They don't really care if the customer gets the help the need or not. And of course don't really care if a provider closes a sale. They hope they do so they buy more but that is about it.

Needs to be a new company a new way to do business. Getting clients the help they need. And providing agents with quality consumers they will build relationships with.
I have a feeling it is coming VERY soon.....

 

[Elephant85]

I think you are right! Hence the reason that my company has gotten into the space. I would be interested in speaking with you about what we have working here.

Got time for a quick chat?

 

[Guest]

I think you are right! Hence the reason that my company has gotten into the space. I would be interested in speaking with you about what we have working here.

Got time for a quick chat?

I knew it. I was waiting for the pitch

 

[Elephant85]

Shoot! Sorry to disappoint. I more was interested in talking with that user about their thoughts on Aggregation vs Generation. If there ends up being business to do, then great, if not then I get to meet someone new and have a good talk.
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Do you think that internet lead generation can work if done properly?

 

[Josh]

Lead Generators and aggregators are just getting more obsolete. They don't really care if the customer gets the help the need or not. And of course don't really care if a provider closes a sale. They hope they do so they buy more but that is about it.

Needs to be a new company a new way to do business. Getting clients the help they need. And providing agents with quality consumers they will build relationships with.
I have a feeling it is coming VERY soon.....

I very much doubt that. Things are changing, not disappearing.
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Do you think that internet lead generation can work if done properly?

Of course it can.
.