Insurance Leads at the Lowest Cost

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. 

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. 

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. 

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:

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.

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.

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.

1. Should You Buy Insurance Leads?

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

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.

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.