As an insurance professional, you know leads are crucial to your survival. Without a steady stream of potential clients, it’s tough to grow and thrive in this competitive industry.
But here’s the thing–you’re not torn about whether to buy insurance leads or not.
Trust me, I get it. I’ve been in your shoes and helped countless insurance experts navigate this exact dilemma.
With years of experience in lead generation, I’ve seen the good, the bad, and the ugly of buying leads. I know what works, what doesn’t, and why.
So, in this article, I’ll take you through the pros and cons of buying insurance leads. We’ll also explore alternatives and why you may want to consider them.
Key Takeaways
In a hurry? Here are the benefits of generating exclusive insurance leads yourself instead of buying them from a lead provider:
- You get exclusive leads.
- You have full control.
- You get higher quality leads.
- It is cheaper.
- You can get innovative.
- It helps build trust.
I’ve explained the lead generation process extensively in my free masterclass training. You can watch it for free here.
What are Insurance Leads?
Before deciding whether to buy insurance leads, let’s understand what we are dealing with.
As an insurance professional, your leads are potential customers interested in buying insurance. They’re already in the market for what you are selling. All you have to do is find them using the right information.
Don’t confuse insurance leads for guaranteed sales. They’re not the same, but the former leads to the latter.
For simplicity, think of leads as people who’ve raised their hands saying, “Hey, I might need insurance.”
Your job is to find and convert these prospects into clients by understanding their needs and showing how you can help.
Now that we know what or who leads are, let’s see how to get them.
Should You Buy Insurance Leads?
When you’re an insurance agent looking to grow your business, buying leads from other websites or lead providers often seems like the go-to solution.
I’ve seen this play out repeatedly with my previous clients, and it isn’t entirely bad.
Here’s how buying insurance leads works:
- Find a lead provider: Many companies sell leads–all you have to do is find one with experience in the insurance industry.
- Choose your lead type: You can either be a generalist, opting for every insurance lead, or select based on factors like insurance type, location, or how recently the lead was generated.
- Set your budget: Now to the financial part… You must decide how much you can spend per lead or month. Note that the more you spend, the more leads you’ll get.
- Purchase and receive leads: Once you buy, you’ll get access to the lead information from your lead provider.
- Follow-up: It’s on you to reach out and try to convert these leads into customers.
From the above, it is easy to see why insurance professionals would want to buy leads in the first instance. After all, who wouldn’t want a ready-made list of potential clients?
It’s quick, convenient, and promises to jumpstart your sales process with as many leads as possible—just what you think you need, right?
Well, my experience working with insurance agents says otherwise. Over the years, I’ve found that buying insurance leads has its own fair share of problems.
Let’s look at some of them.
Problems of Buying Insurance Leads
Here are some of the biggest issues with buying insurance leads:
It is expensive.
Quality insurance leads don’t come cheap. Yes, it gets you instant access to potential clients, but at what cost? The cost of quality insurance leads can take a big bite out of your budget.
You might spend a significant amount of your profits just to acquire those leads. It’s a bit like paying for a shortcut. Sure, it gets you there faster, but you must bear the cost.
It robs you of quality leads.
Not all insurance leads are created equal. You probably know this by now. Buying them can sometimes feel like a box of chocolates–you never know what you’ll get.
Some leads might be hot prospects ready to buy. Others could be months old or completely uninterested. You’ve paid so much, yet you end up with inconsistent insurance leads. It can be pretty frustrating and may negatively impact your efficiency and morale.
No idea how they’re generated.
Buying insurance leads also means you’re often in the dark about how they were generated. You only paid for the finished products, not necessarily the entire experience.
Were these people actively searching for insurance, or did they just happen to fill out a form somewhere? What promises were made? What information were they given?
It’s hard to know. Without these answers, developing the right approach to lead conversion becomes challenging.
Some leads are shared.
When you buy insurance leads from a lead provider, you’re rarely the only player in the game. These companies often sell the same leads to multiple insurance agents.
This automatically changes the dynamics–it’s now a race to see who can reach out first and make the best impression.
Now, you’re competing not only against other insurance options but also against fellow agents who have the same contact information. And this can be draining.
It’s dangerous to depend on one source.
Putting all your eggs in the bought-leads basket can be risky.
What happens if your lead provider suddenly increases prices? What if they go out of business? What happens if the quality of their leads drops?
If you’ve relied solely on purchased insurance leads, you might be scrambling to fill your pipeline.
So, what is the right way to get leads? Simply by generating them by yourself.
Generate Your Own Insurance Leads
Having worked with many insurance agents to get them exclusive insurance leads, I can tell you that nothing beats generating your own leads.
Sourcing your own insurance lads gives you more control and better quality prospects. It also leads to higher conversion rates in most cases.
Benefits of Generating Insurance Leads Yourself
Here are some of the greatest benefits of generating exclusive insurance leads:
You get exclusive leads.
The first benefit of handling your insurance lead generation in-house is that it gives you your OWN leads.
Yes, they’re all yours. No competing with other agents for the same prospect’s attention.
This exclusivity means you can move at your own pace. You can take time to nurture these leads and build a relationship, thereby increasing your chances of conversions.
It’s like having your own private fishing spot–all the catches are yours.
You have full control.
Generating your own insurance leads puts you in the driver’s seat. You can decide how to present your brand and your offer. You can choose what information to collect and how to follow up.
The biggest advantage of this flexibility is that you can use different approaches. You can target different groups of audiences with various strategies.
You can also use different strategies for the same audience to see what works best. It’s your show, and you get to call all the shots.
You get higher quality leads.
Self-generated leads are often of higher quality. That’s because they’ve actively engaged with your content or responded to your specific message. For example, for clients who buy our annuity lead generation services, we can get leads with people aged 55+ who are looking for safety as they transition into retirement.
They’re not just random names on a list–they’ve shown genuine interest in what you offer.
This means they’re more likely to be a good fit for your services. This fit can translate to more reception for your outreach and better chances of conversion.
It’s more cost-effective.
Generating exclusive insurance leads is cheaper than buying from lead providers.
Yes, setting up the system requires an initial investment, but over time, it becomes cheaper.
Once your systems are in place, the cost per lead typically decreases. Plus, with higher-quality leads, your conversion rates may improve. So, you ultimately get a better return on your investment.
You can get innovative.
Generating your own insurance leads allows you to think creatively. You get to come up with ideas that can set you apart from competitors.
You might even discover unique ways to connect with your audience based on the latest marketing trends.
I’ve also seen insurance agents uncover new niche markets others have overlooked because they handle their lead generation. This keeps your business fresh and adaptable.
It helps build trust.
Generating leads often involves creating educational content, which you can use as lead magnets. This not only attracts potential clients but also positions you as an expert in your field.
When you educate your audience, you build trust and credibility with them. When it’s time for these leads to buy an insurance product, they’re more likely to choose you.
Why? Because you’ve already shown your knowledge and value.
We’ve now established why you should consider generating exclusive insurance leads instead of buying from a lead provider that sells to every agent with the budget.
Next, let’s see how you can generate these exclusive leads.
How Do You Generate Exclusive Insurance Leads?
Here are some of the channels I’ve successfully used to generate high-net-worth investor leads for my insurance professional clients:
Facebook Ads
Facebook’s massive user base and detailed targeting options make it a goldmine for insurance lead generation. Here’s how it works:
- We create a lead magnet they cannot refuse, for example, a free educational video on maximizing insurance benefits
- We integrate this into optimized ads with clear, benefit-driven copy and visuals.
- We send prospects that show interest into an appointment funnel.
With the right Facebook ads strategy, you can reach thousands of potential insurance clients who fit your exact criteria.
I explained how to set up Facebook ads that work in my free masterclass training. Check it out.
TikTok Ads
Don’t underestimate the power of TikTok for insurance leads. Its engaging, short-form video content is perfect for explaining insurance concepts in a fun, relatable way.
Here’s how it works:
- We create authentic, concise videos that simplify insurance concepts and direct viewers.
- Then, we use TikTok’s ads platform to boost your best-performing content.
- We also include a clear CTA, like going for a lead magnet or watching a video sales letter.
TikTok lets you target based on interests, behaviors, and industries. You can also direct your insurance leads from here to your appointment funnel.
You can learn more about TikTok ads in this video.
Search Engine Optimization
Search Engine Optimization (SEO) is your ticket to long-term, sustainable, and organic insurance lead generation.
To maximize this channel, we create helpful content that answers common insurance questions. This, in turn, attracts people who are actively searching for information.
We often focus on local SEO to capture nearby clients. Building quality backlinks from reputable websites is also helpful. Your insurance leads from here go to a landing page or an appointment funnel.
While it takes time to see results, once you’re ranking well, you’ll have a steady stream of high-quality, low-cost leads coming directly to you.
Watch my free masterclass training to discover how SEO can help you attract high-quality insurance leads.
YouTube
YouTube is the second-largest search engine, making it an excellent platform for insurance lead generation. We use quality and informative videos with CTAs to explain insurance concepts, answer FAQs, or provide tips.
This helps to build trust and authority. We then promote these videos to our target demographics and direct the leads to our funnel.
In this video, I provided expert tips on using YouTube effectively for insurance lead generation.
Email Marketing
I have used email marketing to generate hundreds of quality insurance and annuity appointments for my clients in the insurance industry. It works because it allows personalized communication and helps build trust and credibility.
We can then leverage this to nurture the prospects we’ve gathered from the other insurance lead-generation efforts. While it takes some patience, the results are impressive.
Check out my free masterclass to learn how to automate your follow-up emails and effectively convert leads into clients.
Need Help With Getting Your Exclusive Insurance Leads?
While generating your exclusive insurance leads is clearly better, it can be a complex and time-consuming process. That’s where working with an experienced professional like me can make all the difference.
With years of expertise in lead generation for insurance experts, we can help you:
- Develop a customized lead generation strategy tailored to your specific niche
- Save time and resources by avoiding common mistakes
- Achieve a higher return on investment compared to buying leads
- Continuously optimize your campaigns for better results
- Scale your lead generation efforts more efficiently
By partnering with an expert, you can focus on what you do best – serving your clients – while we handle the intricacies of lead generation. We explained how the process works in this video.
You can also click here to schedule a call to learn more about working with us.
Frequently Asked Questions
Ashley Davis (or ‘Ash’ for short) is the CEO & Founder of Skyline Social. For over 15 years, Ash has been helping business owners get high-quality leads, appointments, and clients each month. He has extensive experience working with B2B & B2C industries in finance, insurance, marketing, sales and beyond. Learn more about the author here.
