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Life Health > Life Insurance

4 Lead Generation Mistakes That Cost You a Fortune

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(Related: 4 Secret Steps to Making More New Insurance Sales)

 There are a lot of huge mistakes that agents make today. And one of the worst mistakes that you can make is to rely on someone else to help you to find your best leads for life Insurance.

Today, most advisors will use what they believe is the easiest way for them to find the best leads for life insurance.

They will either buy Internet leads; buy a lead program; or buy a list and use a phone dialer! Or they will take a cut in their commissions to get leads from their IMO or agency.

Why Most Lead Programs Are A Problem

1. Those leads programs are very, very expensive.

Whether you pay for your leads; take a cut in commissions to get leads; use a phone dialer, or use some other a lead program; the average lead will cost you about $20. So, if you are lucky enough, or good enough to set sales appointments with one-third of those sales leads, then you will spend about $60 for a sales appointment? If you need and want to have 10 sales appointments per week, then it will cost you $600 per week. Which is over $30,000 per year.

2. Many of those leads are generated through use of deceptive marketing tactics.

Example: People are given a free gift, as an incentive for them to fill out an online form. Accordingly, the people who fill out a form do not realize that their information will be used as a sales lead for an insurance agent or telemarketer to get them to buy annuities and insurance. So, when you contact them, they are unhappy. Because they did not request anything from you! As a result, there is an immediate lack of trust by the prospect. Which makes it hard to set an appointment, let alone close a sale.

3. Most of those leads are given to multiple agents.

Most lead companies will sell their leads from five to ten times (as aged leads). So, you are in direct competition with all the other insurance agents, P&C agencies, banks, attorneys, accountants, tax preparers, and others that will buy or use those same leads?

4. These lead generation tactics do nothing to enhance your personal credibility in your local community.

Buying leads doesn’t help you to attract people to you. So, most agents who start out buying leads are forced to rely on those lead sources for their entire careers — because they never learned how to market their services.

There Is A Much Better Way…

What if instead of you spending $600 or more per week for sales leads, there was an easier and much less expensive way for you to attract the best leads for life insurance to you! So that over time they will contact you and ask you for your help?

This is exactly what most of the ‘top agents’ in our industry are doing. And, you can do it too… it’s called attraction marketing.

The first thing you will need to do is to stop promoting your company and products, because that has the exact opposite effect of being attractive to your best leads for life insurance. It’s said that only 2% of the population likes to be sold. So why would you make yourself unattractive and your life so difficult by pushing your products?

To be attractive to people, you must become their trusted advisor. Someone that people will see as a person who is there to help them to solve their problems. Someone that your best life insurance leads will want to meet with.

The whole idea is for you to develop a relationship with people, and you gain their trust. So that they will approach you to find out more about you and your services. In short, your success in this industry is all about you building a relationship and gaining trust with people! It is not about your products or sales ideas!

As we have said hundreds of times! “If this business were really about having the best products and sales ideas, then why are 90% of the new agents failing? And then why is the average income for experienced advisers only $40,000-50,000?”

When you become a trusted adviser, then people will see you as their financial coach or mentor. The best way for you to do this is to simply decide that you want to be a trusted advisor. All you need to do is to recognize the value you already provide to people. And then claim the role. You always know more than the people out there. All you need to do is find out what problems people are having and then present yourself and your expertise, in such a way that others can find you. In addition, you must become a life-long student of insurance sales. So that you are always learning and increasing your value to your clients.

Consider, people prefer to work with people they know and trust. Or, they want to work with people that are referred to them… by someone that they know and trust. So, you must be known and respected by the people in your local community for the work you do. So that you can make it easier and more cost-effective to consistently attract the best leads for life insurance!

You must get your name and the unique services that you offer… in front as many people as you possibly can every day.

Two Strategies That You Should Use Right Now

One of the easiest and least expensive ways for you to get your name out there is to send ‘everyone’ that you know a monthly newsletter. You can send them a hard copy, email it to them, or provide a link to it on your website or social media page. Then you can call them for an appointment, invite them to your free educational workshop, and/or offer them a free report. Your newsletter can not be about your company, products, or the idea of a sale. Your newsletter must be about how you help people

You should also form a joint venture with a local business. And then you can get them to introduce you to their clients, by offering their clients your free report, or a monthly newsletter. Then you can call their clients for a sales appointment or invite them to your free educational workshop. (Everything that you need is in our marketing and sales systems)

Finally, you will want to set up a system to ask for and receive referrals from everyone you know.

Other Strategies That You Can Also Use Right Now

You should get also your name in the local newspaper, in the local news section, by writing an article; offering a free educational workshop to the general public; teaching an adult education class; being a guest on a local radio (TV) program; sponsoring a public service or charity event, or being a guest speaker at a local association meeting. (Just send the newspaper a press release.)

You may also want to become an active member in associations, clubs, youth groups, and religious organizations. And then you can help them get their organization’s accomplishments in the local news, with your name in the article.

And then you will want to become a member of a lead group, or you can set up your own lead group. (Or, a mastermind group.)

Each of these lead strategies and more is all laid out for you in each of our marketing systems… with all the tools you need.

— Read The Top Secret to Closing Life Sales (or Any Sales) on ThinkAdvisor.

Jeremy Nason

Jeremy Nason, RFC  is the co-founder of the Insurance Pro Shop, an insurance marketing and sales resource center. He has worked as a regional general agent and as a recruiter, as well as an author, coach and consultant, and he is one of the creators of the creators of the Found Money Management Advanced Life Insurance Sales System. He can be reached at (877) 297-4608.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.