What is a Good Exclusive Life Insurance Leads Price?
How do you know you’re paying the right price for exclusive life insurance leads?
Generating your own life insurance leads takes time. Whether it’s an ABM strategy, cold calling or running marketing campaigns, you can invest a lot of time and money attempting to reach people shopping for life insurance policies.
Buying exclusive life insurance leads can relieve you and/or your staff and let them focus on closing deals instead of prospecting leads. With an exclusive lead, only you have been given access to the lead -it hasn’t been sold to anyone else. For that reason, exclusive insurance leads tend to convert at a higher rate than shared leads.
When purchasing any leads for your business, you need to set cost per acquisition goals. Establish what price you’re willing to pay for a lead based on the return you expect to see from a acquiring a new insurance client.
How to Set a CPA Goal
As a life insurance agent, you may earn 90% commission on the first year’s premium, and 5% commission on future renewals of the product. If that’s the case, and a client’s policy costs $100 per month, or $1,200 per year for example, you would make $1,080 in the first year from commission. In subsequent years, you would earn $60 each time the client pays her premium.
Using that example, your marketing efforts could cost up to $1,070 per closed deal and you would still be ROI positive. On the other hand, I don’t know any agents who would be willing to earn just $10 per deal.
When setting a CPA goal, you need to determine how much you’re willing to pay for leads based on how much commission you stand to gain.
How to Determine a Good Exclusive Life Insurance Leads Price
As a life insurance agent, you want to pay the least amount for life insurance leads for the best quality. Finding the lowest exclusive life insurance leads price, isn’t going to necessarily payout the highest in the end. If the quality of the leads you purchase is low, then you won’t see a return on your investment.
At Parasol Leads, we’re transparent about our pricing. We charge $35 per exclusive life insurance lead. These are hot leads, from people who have expressed an interest in life insurance, so they’re more likely to convert than cold prospecting methods. If you paid just $35 for a life insurance lead that closed, you would earn $1,045 per closed deal the first year, and 100% of the revenue you earn from premiums in the future.
What determines a good exclusive life insurance leads price is the quality of the lead. If you purchase 20 leads, and only one converts, your CPA goes from $35 to $700. That’s still a descent commission for you to pocket, if there aren’t other methods you’ve perfected that are cheaper.
Some insurance lead generation companies set limits, so you’re required to spend a certain amount or purchase a set amount of leads. At Parasol Leads, we don’t have limits, so you can buy as many or as few leads as you need. You can purchase just enough leads to increase your earnings or close rate. How much you buy is up to you.
Parasol Leads charges a low exclusive life insurance leads price to help our clients reach their sales and commission goals. Contact us to learn more about our exclusive life insurance leads and other lead types.