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Insurance Leads, Do This Not That!

Updated on February 24, 2014

Do This, Not That!

My name is Dan Hopwood and I am a 4th generation insurance agent. I have been selling insurance since 1988. I got into the business at the age of 17. I literally passed the state exam in the morning, came home put my tuxedo on and went to pick up my date for Prom.

When I first got into the business, direct mail, seminars, and telemarketing leads were very affordable and profitable no matter what insurance product you were selling. These days, direct mail, seminars, and telemarketing just doesn't work as well as it did before. The cost of postage and food have gone up and more and more calls are being screened with caller ID, not to mention the narrowing of numbers due to the "do not call list".

Have you ever read the book "Eat This Not That" written by David Zinczenko? In the book the author gives you healthy alternatives to otherwise unhealthy food choices. The goal of this article is to guide insurance agents down the same path when it comes to choosing how to generate insurance leads.

Dinner Seminars

All I can say is dinner seminars are expensive, and if you plan it on a day that it snows or the weather isn't too good, you could see your investment go down the drain.

First you have the cost of sending out a minimum of 5,000 mailers. Secondly you have the cost of the meal. By the time you are done, you are looking at a bill of 4 to $5,000 with no guarantee that you will see one dollar of your investment back.

Dinner Seminars can be very effective. Dinner Seminars have been around for a long time and many agents have and are making a good living doing them.

Try This Instead

Instead, try a library seminar. I have found that people are sick of being sold to but are open to being taught. Most libraries will not allow for any products to be sold or to have a sales pitch. The Library expects you to educate the public and that is exactly what you want to do. When you get done with the presentation, you will find out that many of your attendees will approach you about helping them with their problem. Who better to help fix a problem than the teacher who taught you.

Most libraries have meeting rooms that they rent out usually for under $50. Put an advertisement in the local weekly paper which runs about $150 a week, offer coffee at the seminar and you're done. The whole seminar cost for under $400 compared to $5,000 for a dinner seminar.

Direct Mail Leads

Direct Mail Leads allow you the agent the ability to see clients who have responded to a mail piece tailored to a particular insurance product. The prospect's response is in the form of a response card that they mail back showing their interests in the product being discussed. Often times the direct mail piece will promote a free booklet or free information.

Direct Mail leads are time tested and do work, however the cost of postage keeps going up and so do the price of the mailers.

A bigger problem than the cost going up, is the fact that response rates are dropping due to the general populations ability to go to the internet to get the information you are promising in your mailer.

More and more people are going to the internet for their information.

Try This Instead

The United States Post Office has a great program called Every Door Direct Mail or (EDDM). You pick the neighborhood you want to target and the post office simply delivers the mail piece to every door. No need to buy a name list. For as low as 16.5 cents per mailer, you can have up to $5,000 direct mail pieces delivered per day. No permit required!

A one thousand piece mailer costs $165 to send out vs. $600 for a direct mail lead drop charged by the direct mail lead companies.

Pay Per Click

If you have your own website, you can use a service such as Google Adwords to drive targeted internet leads to your website. Adwords is an online advertising service that places advertisements at the top or bottom of, or beside, the list of results Google displays for a particular search queries and is Google's main source of revenue. Using services like this is the ONLY way you will be able to get your website listed on page one. Warning though, you must have deep pockets because you are in direct competition with the large companies like AIG Direct and Prudential. A creative ad line will drive traffic to your website but be careful because the cost could get expensive.

Survey

Would you become a member of a Forum and participate if you could get free leads?

See results

Try This Instead

Try Forum or Article marketing. Here are two free ways to drive the same targeted traffic as you would get with Pay Per Click.

First of all let's make sure you know what a forum is. A forum or sometimes called message boards, are the original form of social media. Forums are a place for individuals to chat, get questions answered, it's kind of like a club. They are online communities of individuals from all over and membership is normally free. Participation, "adding value" to a forum is essentially forum marketing. Never promote your business in post, that is what your signature is for. Spamming is not allowed and will get you banned.

The "signature" is a block of information automatically appended at the bottom of each forum post. Kind of like your own little advertisement. The signature often will be a clickable link back to the poster's landing page. The signature is the forum owner's reward to you for being a valuable member.

Every time you make a post in one of these forums, it automatically appends your signature that could read something like this. "Get a Free Term Life Insurance quote Here". When the prospect clicks on the signature, they are redirected to your landing page.

Forums and article directories attract search engine High page rankings because they are rich in content. Next time you do a search, see how many articles or forums pop up on page one. If a person was searching "how to get rid of fleas" and you commented on that thread, there is a good possibility that your signature will be seen and possibly clicked on.

Ever wonder how some of these guys who get involved with companies like Amway or Herbal life recruit so many people into their home based businesses? All of the successful marketers will tell you that they use forum marketing as one of their base programs, right along with article marketing but that's another story.

Article marketing is also very effective. If you have the gift of writing, you can become an authority on your topic to the site visitors. Article directories with good web page ranks receive a lot of site visitors and may be considered authority sites by search engines,leading to high traffic. These directories then give Page Rank to the author's website and in addition send traffic from readers. Some of the Article directories are, Hubpages, ezinearticles, and articles dot com. If a person wants to know more, they can click on the author's section where there is a link to your website.

Article Marketing

Forum Marketing

5 stars for Free Term Life Insurance Leads

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    • profile image

      Robert Hutchins 2 years ago

      I am a General Agent looking for agents Looking for agents / General argents.