Pros
Save you time: Looking for new customers and clients can be time-consuming. Paying for leads gives you access to as many potential clients as you want (and can afford)—which frees up your time to focus on selling.
Access to people ready to purchase: Cold leads can take time to nurture and guide through your sales funnel—if they convert at all. Buying leads can give you access to warm—or even hot—leads who are ready (or nearly ready) to purchase coverage.
Help you get established: Getting started as a new insurance agent can be challenging. Purchasing leads can introduce you to your first prospects, helping you learn how to close sales and establish your book of business.
Cons
Can be low-quality: Not all lead providers—or leads themselves—are worth what you pay for them. High-quality leads can be difficult to find if you don’t set the right criteria, work with reputable vendors, or pursue the right kind of leads.
Costly: Paid leads are an upfront cost without a guaranteed return on investment. It might be some time before you break even and start to see a profit from any leads you’ve purchased.
May include bad information: Even seemingly good batches of leads can include bad, false, or incorrect information. This can happen if a potential customer uses fake information to fill out a form, moves shortly after submitting their information, or accidentally provides incorrect information to the lead vendor.
How Much Do Insurance Leads Usually Cost?
Paid leads vary in cost depending on the type:
More Affordable:
Aged leads tend to be less expensive because the prospect’s information or phone number might be out-of-date, or the prospect might have purchased coverage from another agency.
Shared leads can vary in price but are less expensive than exclusive leads where you’re not competing with any other agencies.
Leads from SEO efforts can also vary in price based on your approach and overall strategy.
Pricier:
Exclusive leads are typically expensive because they’re generated just for you and based on your specific criteria.
Live transfer leads typically have high close rates, which means these are some of the most expensive leads.
Real-time leads can vary in price depending on your preferences, processes, and system, though they typically cost more than aged leads.
The cost of leads can also vary based on your specific criteria and the type of coverage you’re selling (for example, life insurance leads might cost more than homeowners insurance leads—or vice versa).