Insurance Leads

By Scott Hill, Insurance4usa.com
Updated 11/28/2005

Insurance leads are one valuable way to grow your insurance business. Like any business, the key to growth is finding new customers. Insurance lead companies promise access to new customers for a fee. The process of choosing a fee based lead provider is fairly straightforward. Here are some questions you'll want to consider before making a decision.

How long has the company has been in business? Make sure the company has a solid base of customers. Find out how many customers the lead provider has. The length of time in business, and the number of clients, is an indication the company has had some success with insurance agents like you.

Does the lead provider protect against agents from the same company getting the same lead?
For example, will two Allstate agents get the same lead? The better lead companies offer this protection.

Does the lead provider require a deposit?
In my experience, the higher the deposit, the more leery you should be.

Does the lead provider require you to purchase a minimum amount of leads?
The bottom line is, the leads should speak for themselves. In this area, you do need to give a lead provider some time. The amount of time should be up to you. A good rule of thumb is to try 10 leads before making a decision about the quality of the lead source. If the company requires a minimum of 5-10 leads, that's fair. Any more should be a red flag.

How much do the leads cost?
Obviously, cost is a major factor when entering into a relationship with any provider of goods and services. This is especially true when dealing with something that is not a physical good. Compare lead costs as a factor, but don't let this be all that you focus on.

What is the credit policy? Can you return 'bogus leads'?
Some lead providers will cap your credit rate at a certain level (say 15% in a month). If you receive more than 15% in bogus leads, you should obviously be able to receive a credit for this. Be sure to ask if there is any limitation to the number of bogus leads credited.

What about uninsurable leads?
Not all leads are created equally. You should be able to return the bad ones. Some lead providers charge less for leads and don't allow credits. That's not necessarily bad. At the end of the day, how much you pay isn't as important as how much revenue you generate from the leads. Make sure the lead provider does not provide an incentive, like a free phone card, or an entry into a drawing, to submit a request. Incentives impact quality especially if the consumer is mainly completing the form for a free gift or contest entry. An lead that was given some sort of an incentive to complete a request should come with a lower cost to the agent/broker.

Are the leads delivered instantly or are they delayed?
Ideally, you want them delivered instantly. Internet consumers are a fickle bunch. They want information quickly. You should respond quickly. If the leads are sent to your email box, make sure someone checks it while you are out. If you don't want people checking your private email box, send the leads to someone who will be in the office. Make a commitment to respond to a lead within 30 minutes. The percentage of leads you turn into clients is directly related to how fast you respond.

Are the leads exclusive?
In other words, are you the only one getting the lead? If no exclusives are available, how many agents will you be competing with? It's important to know so you have a fair chance to compete for the client.

Can you place any filters on the leads?
For agents who deal only in standard or non-standard insurance risks, make sure you work with an insurance lead provider who filters or allows you to cancel the service at anytime. It's OK to test a lead company, but don't get stuck with a bunch of leads because of a required minimum or non-refundable deposit.

Find out how you select territory. Some insurance lead providers make you select an entire state or area code. Others only require you to pick desired zip codes. This is a matter of preference, so be sure your provider can accomodate what you are in search of.

What is the cancellation policy?
How far in advance do you have to notify the lead provider before they agree to stop sending leads?

Finally, I have seen many agents greatly impact their businesses by purchasing Internet insurance leads. The process does, however, have its pitfalls. Not all lead providers deliver what they promise. Sometimes, lead providers take deposit money and are unwilling to provide refunds. Make sure you get a comfort level before you take the plunge and, above all, always be leery of big deposits.

Our insurance agent clients most often mention the following lead providers...as our competitors. Interestingly enough, many of our agents work with more than one. It's been my experience that each of our businesses tend to ebb and flow. When one lead provider is churning them out, another is struggling a bit. As such, you shouldn't rely on just one. Remember, lead providers fight for the same eyeballs. Using more than one will allow you to compare the two, three, or four against each other. Eventually, you may be able to weed a few out and stick with the ones that consistently work.

Insurance lead Providers

• Insurance4usa.com
• InsureMe.com
• LocalInsurance.com
• Netquote.com
• Insurancefinder.com
• ABCleads.com
• Ileads.com

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