Insurance Leads Review

 

Online insurance leads can be a tried and true staple of a successful insurance agent's practice. They can lead to a lucrative source of income or they can be a costly drain on the budget. Finding quality insurance leads is the key.

You will need to do your research in order to find the insurance leads (whether they be health insurance leads, life insurance leads, auto insurance leads, mortgage insurance leads, or annuity leads) that will provide you the maximum return on your investment of both time and money.

Calculating ROI When Buying Insurance Leads

When buying insurance leads it is all about the ROI. Cash flow issues aside the price of the lead is irrelevant. What you need to be able to quantify is your ROI. Some Internet insurance leads may cost $5 each yet your average closing ratio for those leads is only 4%. Other Internet leads may cost you $25 each yet you close 25%. Which is the best insurance lead for you to buy? Let’s break down the two different example lead sources and calculate the ROI to find out:

 

	Insurance Lead Source #1	Insurance Lead Source #2
# of Leads Purchased	100	100
Lead Cost (Each)	$5.00	$23.00
Lead Cost (Total)	$500.00	$2,300.00
Closing Ratio	4.00%	25.00%
Average Commission per Sale	$500.00	$500.00
Total Commission	$2,000.00	$12,500.00
Total Profit	$1,500.00	$10,200.00
ROI	300.00%	443.48%

 

As you can see from the above example the insurance lead provider with the highest ROI is lead source #2. One additional thing to note is that the above chart does not take into account the time spent working the leads. It is quite possible that after taking into account all of the time you would have spent following up with leads from lead source #1 that were not going to buy then the ROI for lead source #1 would decrease significantly making lead source #2's ROI even more attractive in comparison.

How to Find the Best Insurance Lead Service

So now that you know how to calculate your ROI when buying insurance leads online you are already a step ahead of the competition when you set out to find the best insurance leads service. The absolute most important thing that you can do to find the best online insurance lead provider is to test, test, test and track, track, track.

Make it a goal to buy 100 leads from each of the top online insurance lead sources and then very carefully track your ROI using the above table. Do not rely on just your gut to tell you which lead company is working the best for you. You can easily be swayed by 1 or 2 big sales or by a streak of bad leads. Run the numbers every time. Numbers are impartial. Numbers do not lie.

Insurance Lead Management

It is crucial that you have top notch insurance lead management. You need to be tracking your leads and tracking your sales. If you can consistently calculate your ROI then you will be able to increase your lead buying at the most profitable lead companies and decrease your lead buying (or quit altogether) from the ones that do not have a favorable ROI.

If you can do this then you will be using insurance leads to built a true sustainable business model for yourself or your agency. If you know that for every $1,000 you spend on insurance leads that you will make $3,000 in commissions and you have virtually unlimited insurance leads online at your fingertips then the only question is – “How many times can I spend $1,000 to make $3,000 every month?”

Before you purchase insurance leads just know that some lead providers are good, some are bad, some are downright horrible, and others are absolutely awesome. It is up to you to consistently track your ROI and to be proactive about trying new insurance lead sources.