How financial advisors buy leads for life insurance clients

A steady supply of new leads is essential to running a sustainable advisory business, and there are various strategies for acquiring leads. One option is to buy them. By doing so, you can connect with investors who match your ideal customer profile and the type of services you offer. If insurance planning is a core part of your practice as an advisor, or if it’s an area of ​​your business you’d like to expand, purchasing life insurance leads may make sense.

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Why buy life insurance leads?

There are several reasons why buying leads is attractive to advisors, but the biggest one is that it takes less effort to find the right customers.

Companies and marketplaces that sell life insurance leads have a ready-made pool of potential customers interested in purchasing a policy. These are people (and companies) who have already answered some basic questions about their life insurance needs and have gotten quotes from multiple insurance companies.

Advisors and insurance agents who purchase these leads have the opportunity to connect with people who are already considering purchasing. Your job is simply to guide them to the right type of life insurance for their needs. This is a huge deal because one of the biggest challenges associated with selling life insurance is overcoming resistance from customers who think they don’t need life insurance or can wait a little longer to buy it. That’s it.

Insurance lead generation services save you time by eliminating the need for direct lead generation. Create a target profile for the type of insurance buyers you want to attract, and your lead generation company will do the rest. This is a big advantage if you want to spend your time on other business tasks.

Receive leads in real-time and decide which leads to follow up with. You can also decide how many leads you want to receive based on your maximum budget for purchasing leads.

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Are there any downsides to purchasing life insurance leads?

Any investment in business involves some degree of risk, and purchasing life insurance is no different.

The biggest risk is that the amount of money you spend on buying leads exceeds the amount of sales revenue you can generate. If you’re buying life insurance leads, but none of them convert, or you convert fewer than expected, your return on investment could be negative.

The best life insurance lead marketplaces have refund policies that allow you to refund a portion of the amount you paid if you submit a lead with incorrect information or a lead that cannot be contacted. However, that is not always guaranteed.

Setting ROI and conversion metrics gives you a framework for evaluating whether the lead generation services you’re investing in are worth it. For example, set a goal of converting 15% to 20% of all leads acquired, or generating commissions of 3 to 5 times the amount spent per lead during the life of the policy sold. can.

These are effective goals because they are specific and measurable. You can check your metrics regularly to see how well you’re doing, whether you need to adjust your goals, or consider buying leads from another company to increase conversions. .

Where (and how) to buy life insurance

If you are interested in purchasing life insurance leads for your advisory work, you have many options. However, not all online insurance lead generation marketplaces are the same.

For example, some marketplaces may sell shared leads, while others may sell exclusive leads. Shared leads can be sent to multiple advisors, which can increase competition. However, the benefit of sharing leads is that you typically pay less per lead.

Exclusive leads are expensive, but they provide valuable benefits. These leads are specifically selected based on the criteria you select, rather than being distributed to multiple advisors or insurance agents. Since only you have access to them, your chances of getting a conversion are greatly increased.

When considering which lead generation company to use, it helps to set up some filters first. For example, do you want to target customers based on specific types of life insurance needs or age groups? Or does your ideal customer base consist of high-net-worth investors? The more you can customize your profile, the more effective it will be because the lead generation service will only send you leads that match your business services.

Now let’s take a look at how the service works. Here are some questions to ask when comparing life insurance lead generation marketplaces.

• Does this company only generate life insurance leads, or do they offer other types of leads as well?

• How much do you pay per lead?

• Are prices applied at a flat rate or in tiers? For example, are there discounted rates for leads older than 30, 60, or 90 days?

• What should I know about upfront fees and other charges?

• What are the minimum and maximum budgets you can set for purchasing life insurance leads?

• How quickly are leads expected to be delivered?

• Does the marketplace offer tools to help with follow-up? For example, can you access custom email templates or lead tracking tools?

• Is there a minimum contract required? If so, for how long?

• How responsive is customer service when I have questions or issues regarding account management?

• Do you offer a refund policy for prospects who cannot be contacted?

Asking other advisors and insurance agents what lead generation services they use and if they share their details can help you identify marketplaces you might want to partner with. However, if you find a winning company to work with, don’t be surprised if you want to keep this information private.

Alternatives to buying life insurance leads

If you don’t have the budget to buy life insurance leads, or you’re worried about not getting a return on your investment, there are other ways to attract customers to your business.

Some strategies to try include:

• Lead aggregator. Lead aggregators themselves do not generate leads. Instead, buy from other retailers. This is a more cost-effective way to access large lists of leads, but keep in mind that these lists may be shared among other advisors.

• Cold calling. If done well, cold calling can be an effective way to acquire new insurance customers. You may not have to spend money, just time, but be aware that if the person you are contacting is not ready to buy, you may end up with a lower conversion rate than you expected. please.

• introduction. One of the best ways to attract new customers is to leverage the ones you already have. Letting your customers know that you’re happy to talk to their friends and family about any questions they may have about life insurance is a simple but highly effective way to generate leads.

• Website and Social Media. Having a website is more or less a prerequisite for advisors who want to get noticed online. Combining your website and social media content can increase your search visibility and attract potential customers who are interested in and considering purchasing life insurance products.

• Email and Direct Mail Marketing. Email can be one of the most powerful marketing tools when used correctly. You can segment your list and tailor your message to address the pain points of investors considering what type of life insurance they need. Adding direct mail marketing can further expand your reach and potentially drive more conversions.

Testing different strategies will help you determine what works and what doesn’t for your business. And if you’re considering a lead generation service, look for one that has a reputation for providing great results and the highest level of service to advisors.

conclusion

Whether you should buy life insurance leads depends on what you are trying to accomplish with your business. The quality of the lead generation marketplace you use can directly impact your results. Estimating how much budget you can afford for lead generation services and his expected ROI will help you decide if it’s the right move.

Advisory Tips to grow your business

• Implementing a marketing strategy can be a time-consuming process, so you may want to consider outsourcing to a professional marketing firm for financial advisors. If you choose that path, it helps to consider the range of services offered and the fees you will pay to gain exposure for your business. If you’re looking for a faster route to connecting with clients, SmartAdvisor can help. SmartAdvisor brings you leads and gives you everything you need to follow up.

• If you don’t want to pay an agency a commission, you can save money by creating your marketing plan yourself. Following a financial advisor marketing plan template will help you develop a strategy that fits your company’s needs and goals.

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