By John L Thomas
Everyday, more and more insurance agents are purchasing insurance sales leads to grow their business. Because most agents earn all or most of their income from commissions of insurance and annuity product sales, leads are becoming key to agent success.
Marketing, in the tradition sense, meant that agents created a list of cold prospects and offered to conduct a review of their personal or family insurance program. This method does produce new customers, but at what price. Statistically, only 1 new customer is acquired for every 100 prospect contacts. In most cases, sales success becomes a numbers game.
Why are these numbers so dismal? Probably because the most prospects in a cold list, do not want to review their insurance programs at the present time. Maybe they already have a relationship with another agent. Or, perhaps the prospect just recently changed their program. The again, the prospect may not want to review their programs with someone they don’t know. Regardless, the most of names on a cold list of prospects will not do business with you.
However, if you choose to contact prospects who have communicated a need for what you are selling, your prospecting numbers will look significantly different. For instance, many agents experienced with sales leads actually acquire 25 new customers for every 100 sales leads they contact. As an agent, which numbers would you like to work with?
The difference is that sales leads are individuals who have actually given their permission for you to call and discuss insurance or other financial needs. Rather than chasing cold prospects, sales leads allow you to assist prospects who want to talk about life insurance. With leads, you can easily transform yourself from being an annoying salesperson to a helpful consultant.