Pick your partners wisely:
This goes without saying, but not all lead generation companies are created equal. To put it in even simpler terms, some companies, just like people in general, do the right thing, and some do not. Here we are referring to so-called “incentivized leads.” This is the process of offering a consumer a prize or reward in exchange for the completion of a form or many forms. The classic examples are of the “Win a Free iPod” or flat-screen TV variety. In order to win the prize, the person is required to fill out form after form until they are presumably “entered” into the drawing to possibly win.
The problem occurs when a lead company puts their form in this incentivized “path.” The consumer completes the form, an insurance agent receives this “lead” and contacts them, and the person says something like, “I only gave my information to win an iPod.” This is the definition of a bad lead. Now, some businesses can utilize this advertising channel, and it could be successful in a brand awareness sort of way. However, these leads are worthless to an insurance agent.
It should not be difficult to find a lead company who knows enough to not market to consumers in this manner. However, there are some companies who either do not know better, or are just starting out, or have new ownership/management, etc, and they may utilize this method to generate a high volume of low quality leads.
Another thing to realize is that marketing across many channels sometimes creates the situation where even a reputable company receives this kind of lead from an affiliate company or individual. A good company will cut off the supplier of the bad lead instantly, so be sure to stay in contact with your providers and let them know if you suspect one of these leads reached you.
Our advice is to seek established and reputable companies to partner with. Lead companies with established good business practices and a sizable marketing budget, can afford to market correctly for insurance referrals.
Stay tuned for more tips…
