Finding Life Insurance Customers: Strategies For Success

Finding customers for life insurance can be a challenging task, especially with the insurance industry increasingly moving online. One of the most effective ways to find life insurance customers is to work for an agency that provides leads. This option is beneficial for those starting as there is no out-of-pocket risk when generating leads. However, agencies often charge a fee in the form of a reduced commission rate and reuse leads when an agent quits. Another option is to purchase leads from third-party companies that specialise in finding quality leads. This option requires upfront payment but offers more control over the leads you receive. To succeed in the competitive field of insurance, leveraging online platforms such as LinkedIn and Facebook, as well as email marketing, can be powerful tools for generating leads and connecting with potential customers.

Use LinkedIn to network and generate leads

LinkedIn is a robust networking website with approximately 200 million users in the United States alone, making it an excellent platform for generating life insurance leads. Here are some strategies to effectively use LinkedIn to network and generate leads:

Optimize Your Profile

Create a robust and professional LinkedIn profile that stands out and showcases your expertise in the life insurance industry. Upload a professional profile picture, ensuring it is not a selfie or casual photo. Craft a thoughtful summary that provides rich details about your professional background, including your experience and accomplishments in the life insurance field. Make your job history section read like a resume, using bullet points to highlight your achievements. Write in a casual and conversational tone to engage your visitors.

Engage in Relevant Groups

Utilize LinkedIn's group search function to find and join groups related to your industry, college, and even your hobbies. However, don't just join groups; actively participate in discussions by contributing thoughtful comments. This helps you gain the trust of other group members and establishes you as an industry expert. As a result, professionals in related fields will feel more confident sending potential business your way.

Showcase Your Expertise

Share your knowledge and offer industry advice in the LinkedIn forums. Avoid coming across as a pushy salesperson. By answering questions and sharing your expertise, you can expect people to contact you for help, as you will be recognised as a thought leader. This will also help you expand your network and establish meaningful connections.

Send Personalized Messages

Don't be afraid to reach out and send personalized messages to potential prospects or connections. Take the time to craft a message that showcases your expertise and how you can help them with their life insurance needs. You can also use LinkedIn's InMail feature to message people outside of your network.

Stay Active and Maintain Relationships

Maintain active and meaningful relationships with your LinkedIn connections. Reach out to your network regularly, not just when you need leads or referrals. Congratulate them on their achievements, wish them on their birthdays, or simply check in to say hello. This will help you build solid relationships, and they will be more likely to refer business your way when the opportunity arises.

By implementing these strategies, you can effectively use LinkedIn to network, build relationships, and generate leads for your life insurance business.

Work for an agency that provides leads

Working for an agency that provides leads can be an excellent way to get started in the life insurance business, especially if you're new to the industry. Here are some key points to consider:

Steady Lead Flow and Reduced Risk

One of the biggest advantages of working for an agency that provides leads is the steady flow of leads they can offer. This can be a huge benefit, especially for new agents, as it removes the risk and stress of having to generate your own leads. Instead of spending time and money on lead generation, you can focus solely on contacting potential clients and making sales. This can also be a great way to learn the ropes of the industry and develop your sales skills without having to worry about finding leads.

No Upfront Costs

Agencies that provide leads typically do not charge their agents any upfront fees. This means you don't have to worry about spending your own money on lead generation, which can be a significant financial burden, especially when starting out. However, it's important to remember that these leads are not free. Agencies often compensate for this by lowering your commission rates. So, while you avoid upfront costs, you may earn less on each sale.

Support and Assistance

When you work for an agency that provides leads, your success is in their best interest. They want you to close as many deals as possible, so they are likely to provide support and assistance if you encounter difficulties in the sales process. This can be especially helpful for new agents who are still learning the ropes of the industry. The agency may offer training, resources, and guidance to help you improve your sales skills and close more deals.

Potential for High Turnover

While working for an agency that provides leads can be advantageous, it's important to be aware of some potential drawbacks. One common issue is the high turnover rate in the life insurance industry. When an agent quits, agencies often redistribute their leads to the next batch of new agents. This means that by the time a lead reaches you, it may have already been contacted by several other agents. These leads may be tired of hearing sales pitches and less receptive to your offer.

Lower Commission Rates

As mentioned earlier, agencies that provide leads typically compensate for the cost of generating leads by lowering commission rates. This means that while you avoid upfront costs, your earnings per sale may be lower. If you are a successful salesperson with a high closing rate, you may find that purchasing your own leads from third-party companies could result in higher overall earnings. However, this also comes with more risk, as you'll be responsible for the upfront cost of those leads.

Lack of Exclusivity

Another potential downside of agency-provided leads is the lack of exclusivity. These leads may be shared among multiple agents within the company, including your colleagues. This means that even if you receive a fresh lead, you may still be competing with others in your company for the same client. This can increase the pressure to close the deal and may require more effort to stand out from your colleagues.

Buy leads from third-party companies

If your company does not provide leads, or if it does but you are not happy with the quality, you can buy leads from third-party companies. These companies exist solely to sell leads to life insurance agents. You will need to provide the company with your zip code, how far you are willing to travel to meet with prospects, and how many leads you want to order. You pay upfront, and the company will give you a stack of leads within your specified geographic boundaries.

The biggest benefit of buying third-party leads is that the lead provider does not take a large chunk of your commissions in exchange. For a salesperson with a high closing rate, the cost of the lead becomes a small fraction of the commissions they earn.

Most lead generation companies allow you to specify lead attributes such as age, income, and desired benefit amount. You can also choose between exclusive leads, which are only sold to you, and non-exclusive leads, which are also sold to other agents. Exclusive leads are much more expensive but give you less competition for the customer's business.

The main drawback of third-party leads is the risk involved. You pay for them upfront, which means that if you do not sell any of them, you will make a loss. New agents who have not yet honed their sales skills are particularly susceptible to this risk.

When buying third-party leads, you can choose between shared and exclusive leads. Shared leads are sold to multiple insurance agents, meaning you face more competition, but they are cheaper. Exclusive leads are curated for one agent only and are more expensive.

Some companies also offer customisable leads, allowing you to target a specific audience. You will need to pay extra for this service, but it gives you more control over the quality of the leads you receive.

Network in-person at community events

Networking is a powerful tool for insurance agents to build their client base and establish themselves in the community. Here are some tips to maximize your networking efforts and find life insurance customers:

• Partner with professionals: Collaborate with real estate agents, mortgage brokers, attorneys, and CPAs. Exchange referrals and cross-promote each other's services. Provide them with information about your services and the benefits of your policies. Offer to refer your clients to them when they need financial, legal, or real estate assistance.
• Community service organizations: Get involved with local community organizations such as Rotary, Kiwanis, VFW, and Elks. Participate in their events, offer sponsorships, and volunteer your time. Engage with the members and build relationships. You can also consider conducting educational workshops or seminars to establish yourself as a trusted expert.
• Schools and churches: These institutions often hold events and fundraisers, providing excellent networking opportunities. Offer to sponsor or support their initiatives. You can also explore advertising in church bulletins or providing insurance for the church's assets. Additionally, consider conducting educational workshops for students and parents about insurance basics.
• Local sports teams: Local sports teams, such as baseball, basketball, volleyball, and wrestling, offer sponsorship opportunities and a chance to connect with families. Equipment, tournament, or team sponsorships can increase your visibility and demonstrate your commitment to the community.
• Business cards: Always carry business cards with up-to-date contact information. Listen for opportunities to introduce yourself and share your expertise. Even if someone is not directly interested, they may know someone who is. Let them know that you are open to referrals.
• Referral systems: Build a referral system by providing exceptional service and identifying ideal referral sources from your existing clients. Offer incentives, such as discounts or gift cards, and make the referral process easy with referral cards or links. Educate your team about the process and actively promote it. Monitor and track your referrals to identify the best moments to ask for them.

Use content marketing to generate interest

Content marketing is a powerful tool for establishing your brand as an expert in the life insurance industry and increasing customer engagement. By creating valuable content that educates and informs your target audience, you can build trust and position yourself as a trusted advisor. Here are some ways to use content marketing to generate interest in your life insurance business:

Blog Posts, Articles, and Videos

Create informative and engaging blog posts, articles, and videos that provide valuable information about life insurance. Answer common questions, explain complex concepts, and address concerns that potential customers may have. For example, you might create a video series that breaks down the different types of life insurance and how they can benefit individuals and families.

Infographics and Visual Content

Visual content, such as infographics, charts, and graphs, can make complex information more accessible and engaging. Create visually appealing infographics that highlight key features and benefits of life insurance, or illustrate important statistics and trends in the industry.

Social Media Content

Leverage social media platforms such as LinkedIn, Facebook, and Twitter to share your content and engage with your audience. Post engaging updates, host live streams or Q&A sessions, and join relevant groups to build relationships with potential customers. Consider using paid social media advertising to boost your reach and target specific demographics.

Email Marketing

Build an email list and send regular newsletters or updates to your subscribers. Provide valuable information, answer common questions, and offer special promotions or discounts to your email list. Personalize your emails whenever possible to create a more tailored experience for your audience.

Influencer Collaborations

Partner with influencers in the finance, lifestyle, or family content niches to create engaging content around life insurance. Influencers can share their personal stories and experiences, helping to break down barriers and make life insurance more relatable to their followers.

Host Webinars and Online Events

Organize online events, such as webinars or Q&A sessions, to engage directly with your audience. This allows you to build relationships, answer questions, and address concerns in real time. You can also use these events to generate leads by requiring registration and collecting contact information.

Guest Blogging and Contributor Articles

Reach a wider audience by contributing articles or blog posts to industry websites or publications. Share your expertise and provide valuable insights that establish your brand as a thought leader in the life insurance space. This can also help improve your search engine optimization (SEO) and drive more traffic to your website.

Remember, the key to successful content marketing is to provide value and build trust with your audience. Focus on educating and informing potential customers, rather than just promoting your products. By establishing yourself as a trusted resource, you can generate interest and attract more customers to your life insurance business.

Frequently asked questions