Lead Generation for Insurance Companies: Should Agents Buy Insurance Leads?

When it comes to insurance lead generation, quality will always trump quantity. On paper, having more leads makes sense. After all, the more leads you have, the higher your conversion rates. However, this couldn't be further from the truth. You could generate 12,000 insurance leads in a week, but if they don't have the intention nor the power to purchase your products, then they're a complete waste. On the other hand, you could generate only 1000 leads, and 800 of them convert. That's the power of quality leads!

Insurance lead generation takes a lot of preparation, an in-depth understanding of your target audience, and a lot of time. But what if the success of your insurance agency is highly dependent on getting leads at this moment? How do you get the leads you want without compromising on their quality? This is where buying insurance leads come into play. Here's the complete guide to buying leads and their effectiveness in the insurance industry. 

Is Buying Insurance Leads an Effective Lead Generation Strategy?

Yes.

The first few months of running an insurance agency are tough. You have to juggle between getting brand awareness, streamlining your internal operations, and making hiring decisions. This leaves you with little time to generate leads, and even if you had the time, organic leads take some time to start pouring in. Buying insurance leads is a great way of kicking off your marketing efforts. 

Keep in mind that there are bills and expenses to take care of. You'll need to generate income quickly, and at this time, your organic resources haven't gained the traction needed to supply you with enough leads. There's also a high chance that your sales are minimal, despite marketing your insurance agency aggressively. During your first year of operation, buying leads will definitely come in handy.

You should, however, note that this isn't a sustainable long-term strategy. You need to effectively turn your website and online marketing tools into lead generation tools. This way, they do most of the bulk work for you, and you only buy leads to supplement your sales. 

Where Can I Buy Insurance Leads?

Organic lead generation is often very difficult, and studies have revealed that 61% of marketers consider this as their top challenge. If this is your first time buying insurance leads, there are online vendors that can help you out. You simply provide them with information about your agency, the number of leads you'd like, and their geographical location. All you have to do is call them and convert them into customers. 

You can also partner with local lending officers and mortgage brokers. These are people who interact with your potential audience daily and are a great source of quality leads. They know clients who need insurance, and most of their leads are likely to convert. 

Key Tips for Buying Insurance Leads

When it comes to buying insurance leads, you need to make sure that they're of quality. Otherwise, most of them won't convert, and you'll have wasted your money. Here are practical tips you should consider.

Get Licensed in Multiple States

One of the factors that third-party vendors use to determine the cost per lead is your geo-targeting options.  They will charge you significantly more if they have to narrow down the leads to a particular state or town. 

If you get licensed in multiple states, you can easily negotiate to get a discount. You'll also get more leads from all over the country, increasing your conversion rates. This strategy is highly effective because most insurance agents are licensed in the state that they operate in. This then drives up the demand for leads and, ultimately, their cost. 

Buy Exclusive Leads

Exclusive leads are more profitable compared to non-exclusive ones. You'll be the only insurance agency with access to those particular leads. This will give you enough time to nurture the leads, increasing your chances of conversion. Studies have also shown that companies that nurture leads get 50% more leads that are ready to convert and at a 33% lower cost. 

On the other hand, buying shared leads means that you're not the only one with access to them. There's a high chance that the prospects are getting multiple calls a day from your competitors. By the time you reach out to them, they might be hostile and reluctant to hear you out. 

Don't Be Afraid to Take On High-Risk Leads

There are 2 main benefits associated with high-risk leads; they are highly profitable and very affordable. Due to the risks associated with them, few companies buy them. If you're, however, open to taking on the risk, they will result in high commissions and at a significantly lower cost. 

Buy the Leads in Bulk

Buying in bulk is a catch-22 situation. You're bringing the leads to make money, and on the other hand, you need money to buy them. Bulk buying is, however, more affordable and gives you access to more leads. If you don't have enough resources to buy a lot of leads on your own, you should partner up with other insurance agencies and split the costs. 

Be Realistic

Avoid viewing your bought leads as potential customers. This is simply data that helps you identify potential clients, so don't expect to begin making sales immediately. You should also try out different vendors to get a good sense of the quality of their leads before you settle on one.