Free Leads: Life Insurers Offering The Best Deals

Life insurance leads are potential clients who may be interested in purchasing the life insurance policies that you’re selling. There are two main ways to obtain life insurance leads: through your company or through third-party lead generation companies. Company leads are typically free and save time, but they are not exclusive and may result in lower commissions. Third-party leads, on the other hand, require upfront payment and carry the risk of not resulting in any sales. However, they offer more control over the quality and attributes of the leads, such as age, income, and desired benefit amount. Some lead generation companies, like SmartFinancial, use technology to target specific client demographics, while others, like Service Direct, offer exclusive leads with a higher potential of turning into clients. Ultimately, the decision to purchase leads depends on factors such as cost, exclusivity, and the agent's sales skills and experience.

Company leads are free but may result in lower commissions

While company leads are free upfront, they may not be entirely free. When you receive leads from your employer, the company may lower your commission in exchange. This means that while you don't pay anything at the point of receiving the leads, you may ultimately pay more in forfeited commissions than what you would have paid upfront for third-party leads.

For instance, if you are a good salesperson, company leads may cost you more in the long run than what you would have paid upfront for third-party leads. This is because the company providing the leads will take a chunk of your commissions in exchange. On the other hand, if you are just starting out and have shaky sales skills, company leads may be a good option as paying for leads upfront may burn through your money before you earn significant commissions.

Third-party leads come with the risk of an upfront cost with no guaranteed return on investment. If you do not sell any of the leads, you will make a loss. However, if you are a good salesperson, the lead cost becomes a small fraction of the commissions you earn. Additionally, most third-party lead generation companies allow you to specify lead attributes such as age, income, and desired benefit amount, giving you more control over the quality of leads you receive.

Another option for generating leads is through networking groups. For example, if you are a life insurance agent, your networking group could include professionals such as a personal injury lawyer, a tax accountant, a chiropractor, and a personal trainer. If one of these professionals encounters a client who needs life insurance, they can recommend your services, and vice versa.

Third-party leads are exclusive and customisable but come with a risk

Third-party leads are a viable option for life insurance agents who are not provided with leads by their company or are unhappy with the quality of the leads they receive. These leads are exclusive and customisable, but they come with a risk.

Third-party leads are exclusive in that they are curated for specific agents, meaning they face less competition than they would with shared leads. They are also customisable in that lead generation companies allow agents to specify the attributes of the leads they receive, such as age, income, and desired benefit amount. However, customising leads in this way often comes at an extra cost.

The main risk associated with third-party leads is that they are paid for upfront. This means that if the leads do not result in any sales, the agent is left out of pocket. This risk is particularly pertinent for new agents who are still honing their sales skills.

To mitigate this risk, it is important for agents to carefully research third-party lead generation providers, checking their reputation and reviewing contracts for clarity on data usage and protection. It is also crucial to frequently check the quality of the leads and assess the return on investment.

While third-party leads come with risks, they can be a worthwhile investment, especially for agents who do not have the time to generate their own leads. Warm internet leads, for example, have a high close rate and can help agents fill their pipelines. However, they are also associated with "sticker shock" due to their high cost.

Ultimately, the decision to use third-party leads depends on the individual agent's circumstances and preferences. Some may prefer to rely on company leads, which are typically free and save time, while others may opt for third-party leads to gain more control over the quality and exclusivity of their leads.

Cold leads are cheaper but have a low close rate

Life insurance leads are potential clients who may be interested in purchasing the life insurance policies that you’re selling. They are typically categorised into three types: cold, warm, and hot leads. Cold leads are cheaper but have a low close rate.

Cold leads are prospects who have shown little to no interest in your brand. They may need your service and are your ideal customer but are unaware of you or the difference between you and your competitors. They are not ready to buy, especially if they have never interacted with you before. They know little to nothing about your company, making them easier to differentiate from warm and hot leads.

The benefit of cold leads is that they are easy to acquire, as getting lists of cold leads from B2B lead generation firms is not challenging. Outsourcing the lead generation task can help you focus on sales activities that contribute to your company’s success. Cold leads are also easy to target as you don’t need to look at prospect history to reach out to them. You only need to send an email or make a phone call in the initial step.

However, the conversion rate of cold leads is low. With close rates barely at 1%, they cost you time and dedication for little to no return on your investment. They require more effort to convert, and building relationships with cold leads can be challenging as interactions may feel intrusive.

If you are provided with company leads, you don’t have to spend money to access them. However, this means that the company will lower your commission in exchange. If you are just starting out and you have shaky sales skills, this might be a good deal because paying for leads may burn through your money before you earn significant commissions.

Third-party leads, on the other hand, require upfront payment. This means that if you do not sell any of them, you effectively have a negative paycheck for the week.

Warm leads have a high close rate but are more expensive

Warm leads are prospective customers who have expressed an intent to buy insurance and are likely to respond to sales pitches. They have a high close rate because they are already at the decision-making stage and have a basic understanding of the product or service. They are more likely to be familiar with your brand and may have opted into your mailing list, replied to a cold email, or searched for various life insurance-related topics online.

However, warm leads are more expensive than cold leads. This is because they require more nurturing and guidance to get them closer to making a purchase decision. They may also be exploring your competitors, so the goal is to convince them that your solution fits their needs better.

The cost of warm leads can be a drawback, especially for agents who are just starting or have shaky sales skills. The upfront cost of purchasing these leads from third-party companies can be a significant investment, and if sales are not closed, it can result in a negative paycheck for the week.

On the other hand, company-generated leads are free and save time, allowing salespeople to focus on contacting prospects and selling insurance. However, these leads are not exclusive, and the company will take a portion of the commissions in exchange. For salespeople with high closing rates, the cost of third-party leads may be a small fraction of the commissions earned, making it a worthwhile investment.

Overall, warm leads have a high close rate due to the level of interest and intent to purchase, but they come at a higher cost compared to cold leads, making them a significant investment for salespeople.

Exclusive leads are more expensive but are better for established agents

While company-provided leads are free of upfront charges, they are not exclusive and may come with a reduction in commission. On the other hand, third-party leads are exclusive and of higher quality but come at a higher cost. Exclusive leads are curated specifically for individual agents, reducing competition and increasing the chances of writing a policy. This makes them ideal for established agents with honed sales skills and a high closing rate.

Exclusive leads are more expensive than shared leads, but they offer a better return on investment over time. The higher cost is due to the reduced competition and increased likelihood of closing a sale. Established agents with a proven track record in sales can benefit from exclusive leads as they provide higher-quality prospects and a better chance of conversion.

Third-party lead generation companies offer exclusive leads with various benefits, such as customisation and control. For example, agents can specify lead attributes such as age, income, and desired benefit amount. This allows established agents to target specific audiences and tailor their sales approach accordingly. Additionally, exclusive leads often come with additional services, such as best practices training, to help agents improve their conversion rates.

Furthermore, exclusive leads can save agents time and effort in contacting prospects. Some companies, like Datalot, offer direct incoming calls that are exclusive and pre-qualified, ensuring that agents spend less time on cold calling and more time on productive conversations. This approach increases the chances of closing sales and maximising revenue for established agents.

While exclusive leads are more expensive, they offer established agents a more efficient and effective way to generate business. The higher quality and reduced competition of exclusive leads make them a worthwhile investment for agents with strong sales skills and a high closing rate.

Frequently asked questions