Many insurance agents waste their time with low quality leads for insurance. They pursue insurance sales leads of all types: annuities, life, long term care, insurance sales leads that should not be pursued or the agent does so the wrong way. This article explains the different types of insurance sales leads and how to reduce your wasting time pursuing leads for insurance that won't result in business.

Cheap Insurance Sales leads

There is an insurance lead generation company that has consumers complete cards (from a county fair or other public venue) and answer these questions such as:

• Do you currently own life insurance? (no)

• Would you like to receive information on life insurance? (yes)

The respondents are guaranteed to be age 45 to 64 and have minimum net worth of $300,000 (which means almost any homeowner will qualify) and household income of $100,000. The insurance lead generation company that produces this insurance sales lead guarantees to the agent that 100% of the respondents will be reachable by phone. Obviously, it's IMPOSSIBLE for them to guarantee that fact because you know that there are people you can never reach by phone. You call all times of day and you only get their voice mail. So consider guarantees carefully—think for yourself if the insurance sales lead guarantee can actually be provided.

Since this company knows they cannot guarantee you will reach all prospects by phone they have a backup guarantee that if you order 1,000 insurance sales leads, they will guarantee you earn at least $10,000 in commission as long as you “pursue” the leads. If that guarantee is not fulfilled, they will replace the insurance lead.

By the way—they are also selling the same leads for insurance to other agents. What you are getting has no value if you carefully consider the source of the lead and the guarantee. If you call 1,000 people from the phone book, you'll also earn at least $10,000 in commission! Even though the cost for their insurance sales leads is low ($1.18 each), you are basically buying names no better than those from the local phone book or a list broker (e.g. at 10 cents each) The prospect does not know who you are, they have not expressed any significant interest and probably filled out the card because they were included in a drawing to win a new car. On top of that, the lead card may be eight weeks old! Do you still want to buy this lead for insurance at $1.18?

These insurance sales leads are very inexpensive but are also worthless.

Please think through what the lead generation company is telling you. Ask yourself these questions:

Is the way the insurance sales lead is generated indicate a genuinely interested prospect?

Is the way the lead is generated indicate a motivated prospect?

Is the way the lead is generated indicate a qualified prospect?

Or will you just waste your precious time on the phone calling leads for insurance that are nothing other than names. A worthwhile insurance lead generation system generates leads for insurance that are low volume, high quality. (Some professionals in insurance sales are volume oriented--they prefer a LOT of leads--but a LOT just means you waste your time calling a LOT of unqualified, unmotivated prospects). You don't want a lot of insurance sales leads as that will waste your time. You want leads that become buyers. ASK for evidence of that before you buy insurance leads or any type of leads.

Next, don't be fooled by anyone's offer of inexpensive or free “leads” as they are worthless OR you will pay dearly for them. For example, if an insurance distributor provides you insurance sales leads, and let's assume of good quality, but they take1% commission as they require you to write your insurance with them, how much does that lead really cost? Do the match for your typical sale and see how much the commission cut costs.