Selling Leads Question

[dalex]

I know this question is about the reverse of what you generally get here, but I can't think of a better group to get guidance from on it.

I own a lead gen site. I am not an agent. For about the past year my site(s) have generated around 2,000 auto insurance leads per month. All traffic is organic traffic from google/yahoo. Leads are great quality and my "bogus/scrubbed" rate is about 5%. Presently I use some of the more popular lead gen affiliate programs where I am paid around $10 per lead. (a little more due to volume). I also do some health, life and homeowners leads and I expect these to increase substantially over the next few months to be somewhat comparable in volume to my auto leads.

It doesn't take great math skils to figure out that if I'm getting paid $10 on a lead that is sold four or five times that I'm leaving a lot of money on the table on a per lead basis. So, my question is: Is there any program out there that lets me sell these leads myself to more than one buyer? I have read some posts here about leadpod and it might be what I'm after.... but is there something else out there that I'm missing?

It looks like many here are able to sell their unwanted leads somehow to more than one buyer. Obviously the ultimate solution would be to develop my own network of lead buyers but my volume wouldn't support it and I couldn't have full geographic coverage at the start. I know there are some options I'm missing and would appreciate your feedback/advice/suggestions.

I have lurked around here for a few years (registered in 2006) but this is my first post. I would love to become active in your community and offer perspective from a non-agent, lead gen site owner, but have been hesitant to intrude not being an agent.

I would be happy to offer anyone advice on real world search engine optimization as it applies to the insurance niche as well. I know there are thousands of people claiming to be experts on it. I don't claim to be one of them... but I am a somewhat successful organic search marketer in the niche. That's about all I have to offer the community, but hope the offer is taken and used.

 

[theinuranceguy]

I know this question is about the reverse of what you generally get here, but I can't think of a better group to get guidance from on it.

I own a lead gen site. I am not an agent. For about the past year my site(s) have generated around 2,000 auto insurance leads per month. All traffic is organic traffic from google/yahoo. Leads are great quality and my "bogus/scrubbed" rate is about 5%. Presently I use some of the more popular lead gen affiliate programs where I am paid around $10 per lead. (a little more due to volume). I also do some health, life and homeowners leads and I expect these to increase substantially over the next few months to be somewhat comparable in volume to my auto leads.

It doesn't take great math skils to figure out that if I'm getting paid $10 on a lead that is sold four or five times that I'm leaving a lot of money on the table on a per lead basis. So, my question is: Is there any program out there that lets me sell these leads myself to more than one buyer? I have read some posts here about leadpod and it might be what I'm after.... but is there something else out there that I'm missing?

It looks like many here are able to sell their unwanted leads somehow to more than one buyer. Obviously the ultimate solution would be to develop my own network of lead buyers but my volume wouldn't support it and I couldn't have full geographic coverage at the start. I know there are some options I'm missing and would appreciate your feedback/advice/suggestions.

I have lurked around here for a few years (registered in 2006) but this is my first post. I would love to become active in your community and offer perspective from a non-agent, lead gen site owner, but have been hesitant to intrude not being an agent.

I would be happy to offer anyone advice on real world search engine optimization as it applies to the insurance niche as well. I know there are thousands of people claiming to be experts on it. I don't claim to be one of them... but I am a somewhat successful organic search marketer in the niche. That's about all I have to offer the community, but hope the offer is taken and used.

Just Like any business the return customers are your bread and butter... Instead of reselling the same name to 4 different people and making $40 but most likely these people not coming back... Why dont you sell the same lead ONCE for $30 and if the leads are half way decent, agents will come back for more...

 

[moonlightandmargaritas]

Just Like any business the return customers are your bread and butter... Instead of reselling the same name to 4 different people and making $40 but most likely these people not coming back... Why dont you sell the same lead ONCE for $30 and if the leads are half way decent, agents will come back for more...

Someone with a brain. What a concept!

 

[dalex]

I totally agree with the comments above and would love to find a way to sell a lead once for $20 to $30. However, I don't know of a market where I can do so. It's not like I have enough coverage (2,000 leads/month) where I can create my own market and have a nationwide network of agents.

In re-reading my original post, I link I left the wrong impression. I'm not really asking how to sell a lead multiple times... I'm really asking where are some places that I can sell a lead to a marketplace of agents directly... whether it's once or four times. I don't really care on my end how many times its sold as long as the revenue per lead is more or less optimized (taking into account the business decisions pointed out in the reply above)

Now, I fully understand the attitude of the replies above seeing as leads sold multiple times are frowned upon on the agent side. Frankly, I think they are frowned upon on the consumer side too. Even I... who runs a auto insurance lead gen site won't submit a car insurance quote request through my preferred affiliate because I can't stand the high pressure endless phone calls that follow.

What I am wanting from the consumer end is a simple way to compare prices from a distance and then follow-up with the agencies/companies I wish to. The problem is that such a consumer friendly model won't work where agents are having to pay top dollar for a lead. You guys need the phone number etc. in order to be able to sell because of your large investment in the lead.

In fact, that's exactly what I would want in a perfect world, both as a consumer and a website owner. I really wish that I could tell my visitors that they are going to have an opportunity to review quotes without follow-up calls and solicitation and then choose which ones are best for them. In fact, I guess it's my own desire to make a living that keeps this from happening. I realize giving a quote to someone that you can't call isn't worth much to any of you and probably not worth even the time investment... and because it's not worth much to you, it doesn't pay much for me to do it.

But, what I would like to see one of these days is a site where a consumer can submit their information... wait a few hours and come back and get a list of quotes along with some background/sales pitch from the responding agents/companies. The consumer then chooses which ones they wish to follow-up with and the agent then pays for the lead once the consumer has chosen them. In addition, consumers would be able to rate the various responding agents based on their final experience. If an agent consistently is quoting too low and then substantially raising the price upon follow-up contact, the consumer could give feedback accordingly.

Of course, all of the above is just my theory on how it SHOULD work from the consumer side. It has nothing to do with my real question here and the point of this post which is:

Where can I sell 2,000 auto leads per month and get a better return than the typical affiliate lead site (netquote, insureme etc.)?

 

[theinuranceguy]

well you dont have to do a 100% turn around on who your selling your leads to. Market your website, hell market it on this forum, if you get 10 agents wanting 10 leads a month then you can sell 100 leads exclusivley to them and then 1,900 to your sites like netquote. I bet if you gave a P&C agent on this forum 5 good leads for free and let him or her do a write up on the forum about them you will get dozens of independent agents calling you.

Give us your website and phone number.

You will be suprised I get about 5 calls a week from independent agents wanting contracts from me, most of them are not even from this forum, I guess this site ranks good on google!

 

[dalex]

Great thought and one that I have had many times. I'm not one to come to a forum to drum up business, so perhaps I will offer a few people here some free leads based on zip code coverage or state and if the reply from those are favorable, look for a way to advertise here.

Of course doing so would require development of appropriate lead forms, actually being available during business hours by phone or email to take care of customer service etc., which are things I now have the luxury of not doing. In other words, it puts me in the lead gen/insurance business rather than the website development/promotion business. The website development/promotion business is easily handled from the comfort of a couch in front of a TV late at night and works around family and children's schedules quite well.

I will debate the cost/benefit of flying solo. In the meantime, any thoughts on my original question or my "perfect world consumer scenario" from above?

 

[moonlightandmargaritas]

In fact, that's exactly what I would want in a perfect world, both as a consumer and a website owner. I really wish that I could tell my visitors that they are going to have an opportunity to review quotes without follow-up calls and solicitation and then choose which ones are best for them.

But, what I would like to see one of these days is a site where a consumer can submit their information... wait a few hours and come back and get a list of quotes along with some background/sales pitch from the responding agents/companies.

Where can I sell 2,000 auto leads per month and get a better return than the typical affiliate lead site (netquote, insureme etc.)?

Not sure you want to hear it, but here I go:

A "sales pitch" is worthless. It's just noise. Discriminating, intelligent potential clients (the kind that are best to have) DON'T WANT TO HEAR IT.

Potential clients (few of them) have the requisite background to "review quotes" and "choose which one is best for them". The ones you'd like to have for clients REALIZE THIS. However, the "sales pitches" DO NOT resonate with them. NOT effective.

Nobody CARES where you can sell your leads at a premium price - except you.

You should go back to square 1.

 

[dalex]

I don't know why you think I don't want to hear it. I appreciate your point of view. Thanks for sharing it.

So, I assume there is no model that is worthy of discussion in your mind that allows the local agent to compete against the direct companies that are creating expectations on the part of consumers that they can actually "compare quotes online" other than the present model where the consumer submits a phone number and then has to run for cover from unknown and an unexpected bevy of phone calls. In the meantime, the direct carriers will continue to move consumer expectations in this direction with millions spent on false advertising by promising something that they don't truly deliver. Consumers don't like the present online alternatives. Local agents get buried by the direct companies in the search engine results and can't be found. The only way you presently are found by the person searching for "Car Insurance In Missouri" is to pay top dollar for a lead to a lead broker and then compete against others who buy the same lead... and then have consumers who are unhappy with the unexpected plethora of follow-up calls that they weren't properly warned about.

I don't like sending my visitors to these lead brokers for this very reason. I wish there was an alternative, but I haven't found one that doesn't result in a very substantial cut in revenue. Thus, if I'm having to pimp people into something they don't want (4 agents ringing their phone off the hook), I might as well pimp them to the highest bidder. It makes me sick. Perhaps selling a lead a single time is the answer, but the consumer is being trained to "compare multiple quotes" by the national advertising.

As an agent, I guess the present model works for you so I will end the discussion regarding alternative models that could work well for everyone involved. I don't have the answers at all and don't pretend to. However, the present system in my mind leaves virtually all participants unhappy.

I didn't come here wanting to debate those issues in the first place. My original question was simply "Where else can I sell some leads besides to the big lead brokers"? Your answer to my question was answered with this:

"Nobody CARES where you can sell your leads at a premium price - except you."

That's a perfectly acceptable answer. If anyone has any other ones, I don't mind hearing those either.

Again, I would love to contribute to the community here from the perspective of one who generates leads but is not an insurance broker. If that perspective isn't welcome here, I fully understand.

 

[The New Guy]

I would think you could set up some type of "lending tree" site, where you drive your traffic to.

Customer inputs their information on a site where you control the access to data, and have agents present them with quotes.

Charge a yearly fee to the agent for being in the program.

Let the consumer choose the agent, allow them the ability to rate the transaction with feedback, and charge the agent a set price for the lead.

Customer inputs the lead, an auto e-mail goes out to the agents in that area that are in your network, they submit a proposal to your site, the quotes are viewed by the customer on your site, you control the number of quotes they see, say the top 5 quotes, give the agents in your program 2 hours or whatever it takes to submit their quote, the customer chooses the plan from the agents in your network in that area, you bill the chosen agent.

If a customer submits a quote in an area that is not covered by an agent in your network, the lead is automatically sold to your current source.

You sell your leads for a premium to members in your network for the exclusive lead, and sell your excess.

On the other hand, if your knocking down 20 grand a month, why try to fix it?

 

[dalex]

Good point on why fix it if it isn't broken. It just seems like a lead would be of more value with the data in my hands rather than in the hands of the affiliate program. With an affiliate program, I don't actually get the lead. You guys actually get the lead data and then can do something with it. My question essentially was... what can I do with it if I have the hard lead data? Where are some of the better places to sell it?

I like your proposal for a system. I'm not exploring it as something I'm going to do... I'm just thinking through ways that the online lead model could provide more value to both the customer and the agent. The current model seems to benefit neither. Agents hate paying high prices for leads that are sold multiple times and consumers hate having to field (avoid) the robo calls that occur within seconds of hitting "submit".

I bet the "knowing repeat customer" ratio at a place like netquotes is pathetic. The consumer was left with such a bad taste in their mouth that they probably won't do it again...knowingly. I would love to see a consumer satisfaction survey for people who submit to a "get multiple insurance quotes" type of site. I think for the most part they think they are going to see quotes on screen more or less instantly. In the end, they don't.

I think there is value to all in some system where the consumer finds a beneficial experience and is willing to do it again. I just don't know what it is in the online insurance field.