Although it is a very profitable market, selling insurance can be like any other sales job if you do not know what you’re doing. If you want to start your own insurance sales business, it’s important to know how to navigate the market- especially when it comes to leads. You might be all hyped up in the first few months of selling to your warm markets, when you are still persuading friends and family to take out an insurance policy. But if you’re like the next insurance agency startup, you might find it harder to close sales once you get through with the warm markets and have to move on to the zone of the dreaded cold markets… the real world.
It may sound terrifying at first, but seasoned insurance agents will tell you that there actually ways to navigate the cold markets such that it becomes a less gruesome, and maybe even enjoyable, experience. The problem with most insurance agents is that they often take on a gather-gather approach to cold calling. Everyone and anyone is a sales lead, without careful thought and consideration of the prospects (a) actual need, and (b) capacity to pay.
In the old days, slammed doors were often the norm rather than the exception for insurance agents. These days, nobody has to put up with that kind of cold treatment. There are certainly new ways of doing old things, and you can certainly use technology to your advantage, to boost your leads to sales conversion rates.
Warming Friends Of Friends
Nobody will ever buy from you if people don’t like you, or even trust, you. The great thing about warm markets is that the trust factor is already there, that is, unless if you’ve habitually ripped them off. They will also trust you enough to refer some of their own friends to you, although they wont necessarily volunteer their references to you, you can ask them if they have any friends or family that are in the market for your services.
Do Your Research
Whether you are selling, auto, life, health, home, business insurance, ect. it’s important to first research your lead to see if they might be a good fit for your services. Good questions to keep in mind are: “Do they already have this service?” “Are they in the market for your services?” ” Can they afford your services?” “If they have your services, can you get them a better rate?” and so on. It’s not just about you closing the sale. It’s also about your potential client getting something valuable in exchange as well. Don’t be lazy about finding out if your prospect would need the product, if he or she can afford it, or both he or she needs it and can afford it. Talking to someone who needs the product and can afford it invariably pares down your work to just making your prospect believe how good your product is.
Essentially, you need to market your products in a way that would strike a chord with your prospects at the emotional level, whether that be of love, fear or greed. People buy products because of emotional factors and rationalize their purchase AFTER the fact of buying.
Buying Insurance Leads Vs. Creating Your Own Leads – Which One is Better?
In the past, one of the most common ways insurance companies found leads was to buy them. However, the problem with that method is overtime, everyone ends up pulling from the same exact source, which depletes the chances of you getting a viable lead. If you were early to the lead list, then great… but if you buy the same list that hundreds or even thousands of others have used, it really slims down your chances of getting a good lead because most of the leads may have already been sold other products by other people. That’s not to say that it’s impossible to work with or change a client over to your services, but it can make your task much harder than it has to be.
The new way is to source your own leads. It is a gradual process of building quality, unique, leads yourself. The leads are specific to you. Some of the best ways to do this are: direct mail, social media engagement, hosting your own seminars or webinars, etc. Although this is not an over night solution, it may be one of the most promising and rewarding options for insurance agency startups.