Finding a lead generating company can be an exhaustive process not to mention expensive. For Life Agents focusing on the final expense market having people to see every week is the only way to be truly successful.
With so many IMO's out there offering the "Best Lead" how does one determine what truly a good lead company is? To begin answering this question we first need to look at the IMO (Insurance Marketing Organization). The key here is the "Marketing"; an IMO's job is to provide its agents the marketing they need to be successful or the "leads" to make sales.
Leads come in various forms from direct mail, telemarketed, preset appointments, and voicemail. Depending on the IMO they will specialize in one form or another and offer to their agents leads on a per lead cost basis. Some IMO's make the claim of providing leads to their agents free of charge. Beware of these claims... the old rule of thumb applies - if it sounds too good to be true is usually is.
"Free" leads come with a cost most likely in the form a very low contracts or very poor quality. As of February 2012 the law on voicemail leads changed making these leads illegal in the US. What changed is that now in order to have a solicited voicemail the person being called has to provide "written" permission. Prior to this year companies generating these leads only need an opt-in option to gain permission.
Direct mail leads are on the highest in cost to the agent as you will need to run your weekly campaign for three weeks in a row before you start see any real numbers of leads coming in. With the postage increase the average cost is $400 per 1000 piece mailer with a return on invest of about 1 to 1 % return. That's 10 to 15 leads if the message is good; most IMO's will tell you plan on at least sending 2500 to 3000 pieces per week to generate 25 to 30 leads.
If you're doing Direct mail on your own that is not under an IMO then this cost can be exceptionally expensive. Most IMO's if you're contracted under their carriers will offer a charge-by-the-lead instead of the mailing campaign. The costs for these vary from $35 to $45 per lead with a minimum order of 25 leads per week. Before you lock yourself into any contracts with an IMO's carriers ask to see an example of the lead that will be mailed to a client. If the lead does not clearly convey the message "this is about Life Insurance" don't waste your time or money.
Preset appointments and telemarketed leads are the new type of lead offered to life insurance agents. IMO's and appointment setting companies are popping up all over the place with the same old adage of "ours are the best." Preset appointments are getting a lot of attention these days because newer agents don't want to make the calls and set their own appointments they would rather just go and sell policies.
Great idea right, but very disappointing if you've spent the money on these leads. The reason why it's disappointing is because the marketer generating the lead is paid by the lead - meaning - they'll say just about anything to get the prospect to agree to see an agent. When the agent shows up, if the person is actually there, most will say "I wasn't interested but the person was so insistent that I said fine" or "they said you would just drop off some information for me to read." Meanwhile that lead just cost you $50 to $75 - just and get a refund... most companies will just give you a credit toward your next campaign.
Telemarketed leads are the same for most every company. IMO's will tell you that they make money when an agent sells a policy and not on the leads. Wrong! They absolutely make money on the leads that's why they contract 1000's of agents offering little to no support in the field beyond some product knowledge.
At the end of the day when looking for the best lead generating company or IMO, ask:
To see the lead that will be presented to a prospect,
What contracts are offered with what carriers,
What type of support is provided to agents,
How are the leads generated,
If you decide to move on to another company can I get a release from your carriers?
This last question is most important as most IMO's will only provide leads to contracted agents through their carriers. Most IMO's or Agency's use the same final expense carriers and you will not be able to move to another IMO or Agency without a release or inactivity for about six months with a particular carrier.
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