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How to Obtain, Qualify, and Contact Insurance Leads Effectively

How to Obtain, Qualify, and Contact Insurance Leads Effectively

One of the most challenging things for an insurance agent is finding leads. Even if you know life insurance or any other insurance product inside out, you won’t survive without prospects.

On top of searching for leads, you need to make sure these leads are qualified. It can be difficult, as thousands of agents compete for the attention of a few qualified leads. Getting to these leads before your competitors do is crucial to having a long-term and lucrative career as an insurance agent.

If you're looking to close as many sales as you can, your first few steps should be to look for leads, determine if they qualify as a prospect, and reach out to them properly.

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Various Ways of Getting Insurance Leads

Numerous options exist for procuring insurance leads. Some of these methods are:

Getting Leads Directly from an Insurance Company or Agency

 Working for an insurance firm or agency is an easy way to obtain a steady flow of leads. You enjoy several benefits when you have a company that is supplying you with insurance leads:
  • You don’t need to shell out cash for leads that may not convert into sales.
  • You don’t have to compare lead costs and lead providers. You have more time to reach out to leads and sell your insurance products.
  • Your insurance firm or agency is likely to offer sales assistance and support if you encounter trouble selling to these leads. Since your company is the one spending its resources so you can have the leads you need. It, therefore, wants you to close as many of them as possible.

Buying Leads from Third-Party Insurance Lead Providers

If your insurance company or agency does not provide you with good leads, you may approach a provider to give specific pieces of information, such as the number of leads you want to order, your zip code, and the relevant contact details. Then you pay upfront, and the company will provide you with the leads.

Unlike insurance companies or agencies that decrease your commission rate in exchange for leads, purchasing third-party leads from a lead provider will not affect the amount of commission you will earn. This is highly advantageous to insurance agents with a high closing rate, as the cost of buying the leads becomes a tiny fraction of the commissions they earn.

Another benefit is that some lead generation companies offer exclusive leads. It means that the company sells the leads only to you. Exclusive leads are, of course, pricier, but you’ll have less competition and more chances of closing a sale.

Going to Insurance Field Marketing Organizations (IMOs/FMOs)

Insurance field marketing organizations are non-company affiliated organizations that contract with an insurance firm to recruit agents, perform distribution, and do other marketing functions for the products or product lines of the insurance company. They may offer many potential benefits to both budding and experienced insurance agents, such as dedicated support, competitive commissions, and access to qualified leads. They may also provide lead resources to give agents a consistent stream of potential clients.

Using Lead Mail Drops

Lead drops, also known as direct response mailers, are an efficient and affordable way of procuring leads the entire year. You reach out to these mailers, set an appointment, and provide them with information on the relevant insurance product that meets their needs.

Networking with Other Insurance Professionals

If you are not keen on spending your own money or relying on an insurance firm or agency to provide you with the leads you need, consider networking. Many cities have networking groups where professionals from various industries meet on a monthly or weekly basis to trade marketing tactics, socialize, and refer businesses to each other. Use this opportunity to recommend your insurance products to the clients of the professionals you meet.

Using LinkedIn to Generate Business Leads

This business-oriented social network site is a great tool that can help you acquire leads. One way to get leads with LinkedIn is to join and engage with groups related to your industry. When you contribute thoughtful comments to the discussion, you help establish yourself as an industry expert and gain the trust of the people in the group. When people see you as an expert, professionals will feel confident in sending leads your way.

You can also use LinkedIn to check for important cues on individuals that may require your services as an insurance agent. If a person in your contact list posts a sonogram picture, for instance, it can signal a significant increase in an individual’s financial burden over the next several years. This is the perfect time to get in touch with the person, congratulate him/her on the big news, and let him/her know that you’re there if he/she needs anything.

Using Facebook to Generate Consumer Leads

Besides LinkedIn, you can obtain insurance leads using Facebook, a highly popular social media website. It has paid advertising options that will help you stand out from your competitors. The social network’s advertising platform gives you the tools you need to create and manage effective ads to achieve a variety of goals, such as expanding your social media presence and obtaining possible leads. On top of that, Facebook has built-in analytics tools that make it easy for you to assess the results of your lead generation efforts.


 

Pro Tip: Note that there's no one "best" method from all these options. Certain lead generation strategies may work better for you than others based on your sales style, level of competition, and the local market.

Qualifying an Insurance Lead

If you’re not sure whether the leads you obtained will result in a sale, qualify these leads. Lead qualification is vital. Many inexperienced insurance agents jump to the pitch without gaining a proper understanding of their prospect. What’s more, agents who don’t qualify leads are people who operate like a crocodile salesperson. They’ll keep on talking and pitching without taking the time to realize the real motivations of the lead. As a result, they’ll likely end up wasting time, closing bad deals (or not closing one at all), and missing opportunities on high-value prospects.

When qualifying leads, make sure you do the following:

  • 1
    Ask Qualifying Questions. Ask a few basic questions to determine the desirable qualities a prospect have. These qualities vary depending on the insurance product you’re selling. If you’re selling final expense insurance, for instance, you could ask your lead if he/she has the budget to afford what you’re selling, the bank account to draft premium payments, and his/her current state of health.
  • 2
    Look for the Decision Maker. The lead you’re speaking with has to be a decision maker. If your lead isn’t calling the shots, find who the decision maker is and reach out to that individual promptly.
  • 3
    Determine Interest. Many sales agents like to take a step further by performing a deeper level of qualifying. By doing so, they might find out the level of interest their lead has in their insurance products. You can go deeper into your qualification process if you want to gauge how interested your leads are in what you have to offer.

Identifying Red Flags During the Lead Qualification Process

When you’re asking qualifying questions, you’ll need to spot specific red flags to make sure that the person you’re speaking with isn’t wasting your time. A few of these signs are:

  • 1
    Inconsistencies. Some leads may provide answers that conflict with their statements. If this is the case, ask them to clarify their statements. Seeking clarification is often enough to reveal the real information. Additionally, it lets you know whether your lead is genuinely interested in your insurance products or is just giving you the runaround.
  • 2
    Low Energy Level. Pay close attention to what your leads say and how they say it. If they say that they’re excited about getting life insurance but hear a flat tone, take this opportunity to clarify things. The point is to obtain real information and stimulate a real conversation.  
  • 3
    Reluctance. Some leads display an unwillingness to give you substantial information. They may respond “I’m not sure” or “I don’t know.” If you have leads like these, you’re probably speaking with the wrong person. Don’t hesitate to call them out on their responses. Tell them that you only want to do business with customers who are open and honest.

The Best Time to Get in Touch with Your Leads

If you’re planning to reach out to your leads, figure out the best time to contact them. According to the Lead Response Management Study, there are certain times of the week and day where contacting leads may be more beneficial. The study revealed the following findings:

Thursday is the best day to reach out to a lead. Based on the results of the study, Thursday registered a 49.7 percent success rate when contacting leads. Tuesday, on the other hand, is the worst day to call a lead.

The best time to contact a lead is between 4PM and 6PM. Insurance sales agents who initially reached out to a lead during this period did roughly 114 percent better than agents who called at the worst time of day, which from 11 AM to noon.

Wednesday is the best day to qualify a lead. When the study measured the initial dials to leads that converted into a qualified prospect, it found that Wednesday was the top day. This best day was 24.9 percent better than Friday, which was the worst day to perform lead qualification.

The best times to qualify a lead are from 8-9 AM and 4-5 PM. The morning time slot, in fact, fared over 160 percent better than 1-2 PM slot, which was the worst time of day to qualify.

Contacting Your Leads the Right Way

Simply reaching out to your leads at the best time of day and week won’t help you get prospects and close a sale. You’ll need a well-thought-out strategy when making contact.

Here are some of the suggestions you can follow when getting in touch with your insurance leads:

Prepare responses to possible questions. Your leads may ask questions, so be ready with the right answers. Have a comprehensive understanding of the insurance products you’re selling by being familiar with each product’s benefits, features, and special conditions like back-end loads usually associated with annuities. Additionally, understand the suitability issues that could make one insurance product more or less advantageous for one client versus another.

Write your script. Come up with a greeting and introduction script so you can sound as professional as possible.

A good short sample script that you can follow is

“Hello, [Name of Lead]. My name is [State Your Name], and I’m calling from [Name of Company].” Then, state the purpose of your call.

Take the time to practice. Before you make your first contact, ask a friend or a fellow insurance agent to role-play with you. It will provide you the opportunity to overcome any objections you’ll likely get from your lead.     

Keep your lead comfortable. Your lead is more likely to open up to you and provide you the information you need when he/she is relaxed. If you’re making a call to your lead, make sure that you stay composed. It allows you to sound personable on every one of your sales calls.

Refrain from overwhelming your lead on your initial contact. When you’re cold calling or “cold meeting” a lead, adopt a “go in naked” strategy (figuratively, not literally). Instead of lugging around a briefcase filled with brochures and explaining every bit of detail on a particular insurance product, carry a simple folder and provide only the information requested by the lead. This strategy causes the lead to relax and open up to you sooner.

Don’t be afraid to ask for more information. “Ask” is the magic word for sales success. If you are genuine, honest, and open, and ask out of curiosity, you’ll be amazed at the responses you’ll get. When you ask the right questions in the right manner, you’ll find that your leads will often provide you with the information you need to close a sale.

Do you still need help with leads?

If you’re in search of insurance leads or need further support and training in selling insurance products, don’t hesitate to reach out to TR King Insurance Marketing. What sets us apart from other insurance marketing companies is that we provide access to online training programs to life and health insurance agents, along with exclusive discounts on insurance leads, software, and tools.

On top of that, we offer immediate releases and high commissions. If agents need help while they’re on the field, they can count on us to respond quickly to live chats, phone calls, and emails.

Partner with us today.

Key Takeaways In This Article

  • Try a few methods of getting leads to find the one that fits YOU.
  • Make sure you are qualifying a lead ask you have a conversation with the prospects.
  • Quickly identify Red Flags, address them, or move on.
  • Be consistent in your daily routine, practice, and don't be afraid to ask more questions.

Over to You

We'd love to hear your thoughts in the comments below on:

  1. What other ways do you use to generate leads for your business?
  2. What questions do you ask when qualifying leads?
  3. What are some other red flags not covered in this article?
  4. What days or times have worked best for you when contacting leads?
  5. Do you use a script? Would you share it in a comment below?

If you have any questions, please leave a comment below. We will carefully read each one of them. Happy Selling!

About the Author Matthew King

Matthew King is a co-owner of TR King Insurance Marketing and partner at Independent Life Insurance Agent Association. When he's not creating processes, content, and developing SEO strategies, he likes to immerse in gaming with his wife and friends.

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