This guest blog post was written by Logan Strain, Digital Content Specialist at NextGen Leads. NextGen Leads takes a unique approach to lead generation for insurance agencies that allows them to deliver exceptional value to their customers in three distinct areas: Lead quality, technology and customer experience.
Types of Life & Health Insurance Leads to Buy
Saying that you want to buy "leads" is a bit like telling your waiter at a restaurant that you want to buy "food." If you aren't specific about what you want, you may be disappointed by what you get.
Insurance leads come in many flavors. Three of the most popular are: shared leads, exclusive leads, and live transfer leads.
In order to make the most of your lead investment, you need buy the correct leads for your agency. Let's take a look at what these terms mean and the best strategy for converting each one.
1) Shared Leads
A shared lead is born when a prospect who is interested in purchasing insurance enters their information into an online form. Within moments of the prospect submitting their personal details, that information is sold to a few insurance agencies. The precise number varies. It's typically sold between three and five times. But low-quality lead vendors may sell it ten times or more.
Shared Leads Strategy
Buying shared leads works best if you operate a large agency. Shared leads are very affordable, which can help stretch your lead budget. However, since multiple agencies attempt to contact these leads, they are more challenging to convert into sales.
You always compete against a handful of other agencies for the exact same shared lead. If you have a fully-staffed call center who can auto-dial a lead a second after its purchase, this is not much of a problem. You have the operational sophistication necessary to call leads quickly and follow up aggressively. You can pay less per lead and leverage the large size of your company to make your investment pay off.
It doesn't work quite as well if you're a smaller agency or an individual agent.
2) Exclusive Leads
Exclusive leads are created the same way that shared leads are. But there is one crucial difference: exclusive leads are only sold once. They cost more, but exclusive leads eliminate the challenge of beating out other agencies.
Exclusive Leads Strategy
Exclusive leads are fantastic for small agencies and individual agents who want to keep their pipeline full. To have the most success, you still need to follow best practices, such as calling the lead as quickly as possible and following up multiple times. But the conversion rate of exclusive leads is usually higher than shared leads.
3) Live Transfer Leads
Live transfer leads (also called "warm leads") are as hot as they come. Rather calling a lead based upon contact information they provided, live transfer leads are "inbound." That means that when a live transfer lead is ready, your phone rings and you're instantly connected to a lead. All you have to do is close them.
Here's how it works. Your lead provider has a call center that dials up leads. When a lead is contacted, a call center representative pre qualifies them by asking relevant questions. Once the lead is qualified, the lead is sold and transferred to an agent.
Live Transfer Leads Strategy
Because of their high success rate, live transfer leads work well for all agents and brokers. But individual agents, because they have more experience than your average call center agent, have the edge when closing these leads. Sharper sales skills make the difference in getting the best return possible on high price, high value leads.
However, don't expect your business to subsist solely on live transfer leads, as they are not as predictable as data leads.. There might be several available to purchase one day and a scant few available the next. Agencies who don't want to waste time waiting for their phone to ring should buy a mix of inbound and outbound leads.
Which Leads Are Right For You?
The best lead buying strategy depends on the size and sophistication of your organization, and how much experience you have with lead buying. If you want more guidance, call up a NextGen Leads agent at 1-800-538-2548. Our lead generation experts are standing by to help you craft a lead strategy that will send your profits soaring.