How to Generate Life Insurance Leads at the Lowest Cost

How to Generate Life Insurance Leads at the Lowest Cost

Insurance Leads at the Lowest Cost

There are 911,400 licensed life insurance professional agencies and brokers in the United States of America. According to results from a Forbes Financial Advisor Survey on life insurance, 75% of American adults already have life insurance. That means only 25% of Americans do not have life insurance, and an even smaller percentage are now actively searching for life insurance. Even more, the crowded life insurance industry has the highest customer acquisition costs of $900 per customer on average. The average profit margin for the life insurance industry is one of the lowest at 10%.

How are you going to stand out to close new clients?

How can you generate leads without breaking the bank?

How can you scale your business and reach the next level with tight profit margins?

These are questions we answered in this article for you. To teach you some new ideas on how to generate leads at the lowest cost with the highest profit margin so you can stand out and get to the next level! If you are new to selling life insurance, skip the next section and go straight to the “Insurance Lead Generation for Beginners” section. If you have an established life insurance business struggling to scale because of rising costs and slim profit margins. Then continue reading because the next section is for you!
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Table of Contents

Life Insurance Marketing to Take Your Agency or Brokerage to the Next Level

How to Generate Exclusive Life Insurance Leads Online

Insurance Lead Generation for Beginners

Top 3 Ways to Generate Life Insurance Leads for Beginners

Insurance Leads Related Questions

Life Insurance Marketing to Take Your Agency or Brokerage to the Next Level

Before asking, “How to Get Life Insurance Leads to Get to the Next Level?” you need to ensure you do not have a house built on mud. “Huh?” “What does construction have to do with life insurance leads?”

 

Building a house out of mud is a metaphor for the 90% of potential customers we speak to in the insurance industry who have never built a strong foundation for their small business. And no, we are not talking about having sufficient revenue, a book of business, or profitability. However, these are important factors as well. What we are talking about is your strategic marketing and sales strategy. 

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Do you know why a strategic marketing and sales strategy is crucial?
You need to create your marketing and sales strategy so you know exactly whom to sell your products or services to, how to reach them, how to make them an offer they cannot refuse, and how to position your offer as the ideal solution from the competition. 

 

You could use a proven marketing and sales strategy that results in new revenue for your business. That’s because you need to understand your business goals, ideal customer, and products or services, so you know exactly how to reach your customers and make them an offer they cannot refuse. 

 

With a clear view of your marketing and sales strategy, you can see the best marketing and sales avenues to reach your ideal customers. 

How to Generate Exclusive Life Insurance Leads Online

How to Generate Exclusive Life Insurance Leads Online

Too many insurance agencies and brokerages rely on purchasing digital leads and cold calling. Cold calling works great initially but is challenging and expensive to scale when you need to get to the next level.
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Do you know your ROI when you buy insurance leads?
According to our investigative research survey of 20 of the biggest insurance leads providers in the industry, the average cost for insurance leads is $28.81 per lead. However, for life insurance leads, the average cost is $25.44 per lead. “That is lower than average, this is great, right?” Not quite.

 

The average life insurance commission is $15.60 per month for the first year of a sold policy and about $1.69 per month during renewals. Using that math to acquire one life insurance client (using a close rate of 8%), you would need to purchase 12 insurance leads for $305.28. To acquire one client from buying insurance leads, you will have to wait 6.8 years just to break even! The reality is the ROI needs to be there for purchasing insurance leads. 

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If cold calling and purchasing insurance leads will not get you to the next level, what kind of life insurance marketing will?
There simply are not enough pre-qualified exclusive insurance leads to purchase from these providers at any time. Building your exclusive life insurance marketing and sales funnel is the way to get pre-qualified and exclusive leads. The steep competition has driven up advertising costs to capture the attention of the 2% of people who are ready to purchase life insurance now.

The power is in capturing the attention of the 98% who are not ready to buy and building a relationship with them using sales funnels, so they choose your company when they are ready to buy. The only lead generation strategies that generate insurance leads online at a near-infinite ROI is Search Engine Optimization or insurance SEO. Picture a funnel like the one below:

SEO Sales Funnel
You need to generate attention to get people into your funnel to become leads. SEO is one of the only marketing and advertising tactics where all the attention and revenue you generate continues for your business even after you stop investing in SEO, so your ROI over time infinitely increases. Here is what SEO looks like versus traditional paid advertising:
organic seo advantage line graph
If you are a numbers guy or gal, then you will like what the data says about the ROI of SEO. The average cost to acquire a client using Google Ads is $1,609.60 per client, increasing by about 15% annually. The average cost to acquire a client using SEO after a year of investment is $116; after two years, the cost goes down to about $0. SEO is a long-term branding strategy for those who need to get to the next level by lowering their costs and increasing their profit margins to scale.

Google Ads is a short-term source of insurance leads and sales, which gets more expensive yearly, increasing your costs and decreasing your profit margin over time. For those unfamiliar with insurance SEO, it is a marketing strategy for generating life insurance sales at the lowest cost, increasing your profit margin and lifetime revenue per customer. 

All major search engines have organic search results and paid search results.

Paid Search Results:

Paid Search Results

The paid search results make up only 2% of clicks on major search engines like Google, and the only way for your agency to gain exposure using paid search is to pay for it. The moment your agency stops paying Google for exposure in paid search is the most all exposure and revenue stops for your agency. The cost of generating leads from paid search is only going up 15% for search ads and 45% for display ads every year. 
Organic Search Results:

organic search results

Organic search results make up 98% of clicks on major search engines like Google. The only way for your agency to gain exposure to organic search results is to earn it using SEO. Even after your agency stops investing in SEO for exposure to the organic search results, all of your exposure and revenue will continue for your agency well into the future. The cost of generating insurance leads using SEO decreases over time, and your ROI increases.

Consider generating leads using insurance SEO as investing in real estate or mutual funds. When you first invest, your return is low. Still, after a year, two years, or three years you begin to benefit from compounding returns that exponentially grow yearly, even if you only invest the same amount of money each year. This is why generating insurance leads using insurance SEO is one of the only sources of leads that have a near-infinite ROI over time. If you want to learn more about generating leads using insurance SEO services, click the button below.

Insurance Lead Generation for Beginners

Suppose you are anything like the 90% of insurance agencies and brokers we speak to. In that case, you probably need an insurance marketing and sales strategy for leads.
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Would you build a house on mud?
Building your insurance career without a concrete foundation that is your marketing and sales strategy is like building your house on mud. 
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Do you know why a strategic marketing and sales strategy is crucial?
You need to create your insurance marketing and sales strategy so you know exactly whom to sell your insurance products or services to, how to reach them, how to make them an offer they cannot refuse, and how to position your offer as the ideal solution from the competition. 

 

You could use a proven insurance marketing and sales strategy that results in new leads and revenue for your business. That’s because you need to understand your business goals, ideal customer, and insurance products or services, so you know exactly how to reach your insurance customers and make them an offer they cannot refuse. 

 

Now that you have a clear view of your marketing and sales strategy, you can clearly see the best marketing and sales avenues to reach your ideal customers.

Top 3 Ways to Generate Life Insurance Leads for Beginners

  1. Should You Buy Insurance Leads?
According to our investigative research survey of 20 of the biggest leads providers in the leads industry, the average cost for leads in the insurance industry is $28.81 per lead. However, for life insurance leads, the average cost is $25.44 per lead. “That is lower than average, this is great, right?” Not quite.

 

The average life insurance commission is $15.60 per month for the first year of a sold policy and about $1.69 per month during renewals. Using that math to acquire one life insurance client (using a close rate of 8%), you would need to purchase 12 insurance leads for $305.28. To acquire one client from buying leads, you will have to wait 6.8 years just to break even! The reality is the ROI is not there for purchasing leads

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“What about Referrals for Leads, Do Those Work?”
2. How to Work Referrals for Leads?
You need to be known, liked, and trusted to sell anything. Referral leads come from being known, liked, and trusted. According to a recent survey, 82% of people seek recommendations and referrals from friends and family before they make a purchase. If you are building your company using referral leads, these are warm leads that convert better than cold leads you would get from cold calling. Referral leads are that someone already knows, likes, and trusts you have a friend who does not know, like, or trust you. However, that friend knows, likes, and trusts the friend that you both have in common. When your friend refers you to their friend now, this new person knows, likes, and trusts you as before you met. 

 

Now the downside of generating referral leads is you can only have so many friends and partnerships that make strategic and financial sense. When you are ready to get to the next level in your company, you need more than what referral leads can provide to build a bigger, more successful company. When you are new, then referral leads are great. Even more, referral leads take time because relationships take time, so do not depend on referral leads for all your business when you start.

You need to be going out there and making things happen for your new company and not waiting for things to happen to your company. The ideal path is to do both. Focus on generating cold leads, then develop new relationships to generate warm referral leads over time. One of the best ways to generate referral leads is by networking in local chambers of commerce or networking at local meetups and events doing activities that you love to do. You could get social online using Linkedin to network with other advisors and connect with new people on Linkedin.

3. Setting Up Your Google Business Profile for Leads
Google Business Profile provides direct access to your customers searching to purchase insurance in your local area on Google and Google Maps. Business profiles are a great source of warm leads from the local search results in Google Search and the local results in Google Maps. According to Google, 28% of people who use local search make a purchase from the company they find in local search on Google and Google Maps.

Even more, 93% of consumers used online searches to find a local business that serves a geographical area. Every business is a relationship business. By showing up online when local clients in your community need insurance, you can be the first to build a relationship with these clients. You need a proven process for generating warm qualified leads and new clients using a Google Business Profile.

 

Think of this as a passive investment into your 401k; at first, you may not get any new leads or clients. After months to a year of investing in building your Google Business Profile, you are generating new warm qualified leads and clients every month without lifting a finger. 

Insurance Leads Related Questions

How Do You Generate Insurance Leads?
Whether you are just getting started or have an established company generating leads and clients, you must build your house on solid ground before generating more leads. Start with building your marketing and sales strategy foundation. Then use your marketing and sales strategy to generate qualified leads and clients. 
How Do Life Insurance Agents Get Clients?
Professional agencies and brokerages that receive a near-infinite ROI focus on SEO or Search Engine Optimization. If you are a new agent, cold calling, referrals, and investing in your Google Business Profile is the best place to start. Professionals avoid buying leads from providers because the ROI from most providers is not there based on our recent investigative survey.
How to Generate Free Leads for Life Insurance?
One of the only ways to generate a near-infinite ROI from free leads is by using SEO or Search Engine Optimization.

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