Life Insurance Lead Generation is the hardest part of the job for a life insurance agent. No matter how well you know life insurance and can explain the nuances of your product, you can’t survive without leads. Since sales are increasingly moving online, agents are competing with computers for sales, so finding and using leads is more important than ever.
It is known that there are hundreds upon hundreds of life insurance agents vying for the attention of very few qualified prospects in the life insurance market. To succeed in this business, you must get in front of these prospects before your competitors. The industry pays an average of $52,180 a year, but training is only “moderate.
Below is a list of the best ideas for generating life insurance leads. Each method is described, along with its pros and cons.
The most important takeaways from this post
- Finding good leads is one of the most challenging aspects of being an insurance agent in a competitive field.
- Having a successful career in insurance requires signing new customers.
- Finding new leads on LinkedIn takes engagement and hard work, but it’s worth it.
- Lead generation methods vary depending on the agent’s sale style, local market knowledge, and specialty.
Leads for company life insurance
Choosing a company that provides leads to its agents can be an easy way to ensure a steady lead flow. When recruiting prospective agents, many life insurance agencies use the promise of leads to entice them. Although the idea of not prospecting for business on your own is alluring, the images companies paint about their lead programs are almost always more attractive than the reality.
There are several benefits to working for a company that provides Life Insurance Lead Generation.
- The first benefit is that you don’t risk your own money on leads that might not convert into sales. Lead providers usually don’t charge agents up-front fees for leads.
- Second, not having to compare lead providers and lead costs allows you to spend more time contacting prospects and selling them life insurance.
- Last but not least, because your employer is paying for these leads, it has a vested interest in you closing as many as possible. This means they are much more likely to provide support and assistance if you encounter difficulties.
The fact that company leads have no up-front fees doesn’t mean they’re free. When you receive leads from your employer, your commission is almost always reduced.
See also: Local Insurance Companies near me
It might be a good deal for you if you are just starting out and don’t have strong sales skills, because paying for leads might burn through your money before you earn significant commissions. It is common for good salespeople to incur more forfeited commissions from company leads than from third parties.
In most life insurance agencies, the turnover rate is astronomical: new agents usually last less than 90 days on average. It is common for company leads to be reclaimed and redistributed to new agents when an agent quits. A company lead may already have been called by a half dozen or more ex-agents by the time you get your hands on it.
Life Insurance Lead Generation from third parties
A third-party company whose sole business is to sell leads to life insurance agents exists if your company does not provide leads, or if it does but you are unhappy with the quality. You usually give the company your zip code, how far you’re willing to travel to meet prospects, and how many leads you’d like. Your company provides you with a stack of leads within your specified geographical boundaries after you pay upfront.
The biggest advantage of buying third-party leads is the lead provider, unlike an employer that provides leads, does not take a large cut of your commissions in exchange. When a salesperson closes many deals, the lead cost becomes a small fraction of his commissions.
The difference between exclusive and nonexclusive leads is that exclusive leads are sold only to you, whereas nonexclusive leads are sold to other agents as well. Exclusive leads are much more expensive, but you have less competition for their business.
Third-party leads carry a significant amount of risk. You pay for them upfront, so you effectively have a negative paycheck if you fail to sell any of them. This is especially true for new agents who haven’t yet honed their sales skills.
LinkedIn Prospecting
Utilizing LinkedIn to its full potential is key to acquiring new customers.
Build a robust profile
It is important that your profile stands out. When someone reads it, he should feel as if he knows you as a professional and a person, even though he has never met you in person. The first thing you need to do is upload a picture that exemplifies your professionalism. This means no beach pictures, no selfies, and no pictures with friends. You don’t need a glamour shot or a top-dollar photographer, but you should buy a reputable studio for a professional headshot.
Next, take the time to write a thoughtful summary. Your summary section should provide rich details about your professional background. In this section, you tell visitors what you’re about, why you’re in life insurance sales, and what you’ve accomplished. Visitors are unlikely to read your job history in detail without a thoughtful summary.
You shouldn’t just list job titles and employment dates in this section of your resume. Instead, make your writing more casual and conversational, with bullet points that highlight your accomplishments in every position. This does not mean devolving into text-speak, but you want your visitors to feel like they are having a conversation with you over coffee, not reading a boring list of your professional accomplishments.
Don’t just join groups, engage with them
With the site’s group search, you can find groups based on your industry, college, or hobby. Joining these groups will not build your network or get you leads.
Contributing thoughtful comments to the discussion enables you to gain the trust of others and establish your credibility as an industry expert. When you are considered an expert, professionals in related fields feel confident sending business your way; having someone like you in their network makes them look good by extension.
Freely share your knowledge
Use LinkedIn forums to offer industry advice to people who are seeking it. As you answer more questions and contribute more knowledge, you can expect people to contact you for help based on the expertise you have demonstrated. Do not come across as a pushy salesman.
Keep in touch with your contacts
You are doing LinkedIn wrong if the only time you contact people on your list is when you ask for leads or referrals specifically. When your list members need help, or simply to wish them a happy birthday or congrats on a recent promotion, reach out to them.
They are most likely to refer life insurance businesses to the agent with whom they have the most active and meaningful relationship.
Keep an eye out for important life changes
Sometimes a seemingly trivial social media post can provide an important clue that a person needs your services as a life insurance agent. For instance, sonograms are ubiquitous. A new arrival signals a significant increase in financial burden for a person over the next 18 years. Reach out to this contact once again in a non-pushy tone, congratulate him on the big news, and let him know that you are there to help in any way possible.
Professional Networking
When you network with other professionals, you can get life insurance leads without cold calling, relying on overworked company leads, or spending your own money.
In most cities, professionals from different industries meet on a weekly or monthly basis to socialize, share marketing strategies, and refer business to one another.
What are some of the pros and cons of company leads?
In addition, company leads are generally free, so you don’t risk your own money on leads that might not convert. You won’t have to compare lead providers and lead costs, which gives you more time to sell life insurance.
Also check out: Top Rated Insurance Companies in America
When an agent quits, the company may reclaim all of its leads and distribute them to the new agents. By the time you get your hands on a company lead, it may have already been called by a half-dozen or more agents.
What are the best ways to generate leads on LinkedIn?
Don’t just join groups—engage! Write a good summary with rich details about your professional background. Use a professional profile photo. Your job history should read like a resume, with bullet points of accomplishments rather than a list of past employers. Don’t just join groups—engage.
To find leads, how does an agent maintain a personal touch?
Get in touch with people when they need help with something, to wish them a happy birthday, or to congratulate them on a recent promotion when you check your contact list. When these contacts have life insurance businesses to refer to, they are most likely to send them to the agent with whom they enjoy the most active and meaningful relationship.
Different Life Insurance Lead Generation approaches will work depending on the agent’s sale style, local market, knowledge, and specialization.
Here’s the bottom line
The good news is that there are numerous methods for finding life insurance leads. Which method is best depends on the agent. Depending on your local market, level of competition, sales style, and the niche you are targeting, different lead generation methods will work better than others.