How to Generate Exclusive Health Insurance Leads

The health insurance industry has the highest average customer acquisition costs of $900 to acquire one new customer. Customer acquisition costs are so high because the big insurance companies can afford to lose money advertising to put you out of business. Here is how much 

the biggest insurance companies spend to advertise annually:

1. State Farm spends $43.7 million just on Google Ads every year!
   
2. Progressive spends $43.1 million just on Google Ads every year
   
3. eHealthInsurance spends $20.6 million just on Google Ads every year!

Insurance agencies and brokerages have the lowest profit margin of any business industry, as low as 10% on average. For the health insurance business, the money is in the long-term policy renewals and the commissions you receive over time as you close more and more clients. Since acquiring a client is so expensive, you need to either lower your costs or acquire many clients to profit big; ideally, you would be doing both.

Most insurance leads providers, and lead generation solutions do not deliver an excellent ROI. Insurance lead generation is more complex than purchasing leads from a provider and profiting.

Our team researched 20 individual health insurance lead providers to answer that question. The results of our study found that purchasing insurance leads online does deliver an ROI for auto insurance leads, home insurance leads, and life insurance leads. The only leads that saw a positive ROI were healthcare leads to generate health insurance premiums.

To acquire one health insurance client on the low end of the close rate (8%), you would need to buy 12 leads for $202.92. On the low-end health, insurance agents are making a positive return on investment (ROI) of $175.78 per client from purchasing leads. To acquire one health insurance client on the high end of the close rate (12%), you would need to buy eight leads for $135.28. On the high end, health insurance agents make a positive return on investment (ROI) of $243.42 per client from purchasing leads. 

The issue is that the MAJORITY of health insurance leads providers are not delivering pre-qualified quality exclusive leads, so you know they will convert. There are not enough pre-qualified, ready-to-purchase leads in the market for the number of customers these health insurance leads providers have. There are plenty of leads available in the insurance industry, but not everyone is ready to purchase right now. Even more, these health insurance lead generation companies are reselling leads to multiple agencies, so the leads are burned by the time you get to them. 

Using a health insurance lead service will only grow your business so far, and when you need to get to the next level, you will be limited to scale by high costs and slim profit margins. You need your own health insurance lead generation system to gain access to exclusive leads in real-time, pre-qualify these leads so you know which ones are ready to convert, and nurture the leads that are not yet ready, so they convert over time. 

There is a lead generation method that delivers the highest quality exclusive leads at the lowest cost, which could deliver a near-infinite ROI over time. This little-known lead generation method is Search Engine Optimization or SEO. All major search engines, such as Google, Bing, and DuckDuckGo, have organic search results and paid search results. The paid search results make up only 2% of clicks and are very expensive advertising channels in the health insurance industry. The average cost to acquire one health insurance client from Google Ads is $1,609.60. The only way to advertise your health insurance agency in the paid search results is to pay for exposure. 

Here is what the paid search results look like:

Every lead to buy health insurance that your health insurance agency was generating from the paid search results stops permanently. 

The organic search results make up 98% of all clicks and deliver a near-infinite ROI over time, making them a very cost-effective channel that scales. After a year of investing in SEO marketing to generate sales, the average cost of acquiring a client is only $116, and after two years, the cost goes down to $0. You are literally making 100% profit after two years when you invest in SEO marketing. Unlike the paid search results, the organic search results cannot be bought; they have to be earned using an effective SEO strategy; this levels the playing field between your agency and huge insurance companies with unlimited budgets.

Here is what the organic search results look like:

Unlike the paid search results, all of the leads health insurance generated and revenue continue even after you stop investing in SEO.

Here is a visual representation of SEO versus Paid Advertising:

Click the button below to learn how to use insurance SEO services to generate a near-infinite ROI for your agency.

According to a new survey, more than half of Americans are confused by health insurance, including 65% who do not know that HSAs and FSAs are two different things.

Here is what confuses health insurance consumers the most:

• 52% do not know what counts towards the deductible.
• 47% are clueless about what procedures are covered.
• 47% have no idea what is in-network or out-of-network.
• 43% cannot tell the difference between HSA and FSA.
• 28% could not tell you if they qualify for discounts.
• 15% are lost if they even have coverage at all.

When people are confused, they turn to Google to search for more information and learn about what they do not know. You could use SEO to educate health insurance consumers so they will begin to form a relationship with your agency. You could also offer them something of value in exchange for their email address or phone number to continue following up on that relationship until they are ready to buy from you. 

Click the button below to learn how to use insurance SEO services to generate a near-infinite ROI for your agency.

The fastest way to make more money from your agency is to sell other services, such as upsells and cross-sells, to increase your average commission per client and your lifetime revenue generated per client. The reality is that if you sell health insurance to a client, they need life insurance too. Considering that 48% of Americans do not have life insurance, there is more than likely considerable overlap between those who do not have health insurance and those who do not have life insurance. The fastest way to increase your agency’s revenue and profit is by cross-selling other insurance products to your existing client space. 

What is Lead Generation in Insurance Company?

Lead generation generates leads for an insurance company, with the overarching goal of converting those leads into new sales.

What is Lead Generation in Healthcare?

Lead generation is generating leads that want healthcare with the overarching goal of converting those leads into new sales.

How to Get Insurance Leads for Free?

The only method we know to generate leads in the insurance industry for free is using SEO. 

How Do You Generate Health Insurance Leads?

You could generate health insurance leads using paid advertising, networking, cold calling, email marketing, social media marketing, or SEO. The only method we know which delivers a near-infinite ROI is SEO.

Click the button below to learn how to use insurance SEO services to generate a near-infinite ROI for your agency.