According to research, over 90 percent of insurance agents burn out within their first year of working. Many insurance agents make too many mistakes off the bat which causes them to eventually fail and give up.
Being in a career that is straight commission can be tiring, especially when finding qualified customers is like searching for a needle in a haystack.
A huge factor of success for insurance agents is using insurance leads correctly. Unfortunately, only a small handful of insurance agents know how to use a lead to their advantage and multiply it into a handful more leads.
The problem is, how can you avoid the most common mistakes when using insurance leads, and how can you convert them into high-paying sales? The last thing you want to do is burnout within your first year.
Thankfully, we've created this article to teach you everything you need to know about using insurance leads to their full advantage. Keep on reading to learn more and make more sales!
1. Don't Wait Too Long
Every moment that you waste on qualified leads decreases your chances even more of converting that lead into a sale. After someone fills out their information, they are at the peak of their interest and ready to purchase at that moment.
The longer you wait, the more of a chance that prospective customers will have checked out another insurance agent for their purchase.
According to a lead response management study, your chances of a sale between five and 30 minutes of initial interest decrease over 100 times!
2. Consultation Fees
Charging for an insurance consultation comes across as inauthentic and money-hungry. Most potential clients are completely turned off by the thought of being charged just to learn more about what you have to offer.
All consultations should be free, it is part of the job of being an insurance agent. If the idea of removing your consultation charges scares you, you should work more on your sales skills.
3. Talking Too Much
When a potential customer comes in to check out life insurance options, they are contemplating a big commitment. This is a big deal for someone, and what they need most is to purchase insurance that best suits their needs.
If you are speaking too much with sales talk, you are missing out on the key points of what your potential client needs. Let the customer feel like they are in control of the conversation by slowing down on your sales talk and listen to them more.
4. Understand the Insurance Leads Process
To understand the mindset of your prospective customer, it is essential that you get the entire process of how insurance leads work from an online source.
Your customer begins the journey by filling in their information on online registration or on the phone with a telemarketer, then they are prompted with numerous questions regarding their lifestyle so that the "system" best understands their insurance needs.
After that, their contact information has been sent out to countless insurance agents (like yourself), only to be hassled with numerous phone calls for the next couple of days. (from some lead places, but ours are exclusive to one agent.)
Having a better understanding of this common scenario will help you to have a higher level of compassion with your customers. Also, showing that you know what they are experiencing will help them to feel understood and choose you as their agent.
5. Not Having Enough Options
The more options for insurance that you offer your leads, the more of a chance that you will have of selling one of your options. The right insurance is like trying on the right outfit- if it fits them right, they are most likely to purchase.
If you only have a couple of options, your customer may not feel like your insurance suits their needs and they will go elsewhere.
6. Selling Aggressively
According to research, aggressive selling techniques are outdated and no longer work. No one wants to deal with someone who makes you feel like your big life decisions belong on a used car lot.
Have patience with your customers, listen to them, and help guide them towards the sale in a way that is conversational rather than forceful. Being forceful will only push them further away and eventually leave to work with someone else.
7. Being Too Friendly
Being friendly is imperative to being a successful insurance agent, however, being overly-friendly is not. Remember you are calling for a business transaction, not a friendship hotline!
If you are calling your leads with a shy voice, you will come across as a pushover and not professional enough to your leads. Instead, have a direct voice and talk business with a friendly tone.
8. Forgetting to Track Your Leads
One major mistake insurance agents make when using insurance leads is neglecting to track their leads altogether.
How could you possibly know how well your sales skills are if you do not know your closing rate?
Instead, create a spreadsheet that outlines both sales and missed sales, and at the end of each month, calculate the total number of leads with the number of sales to discover your closing percentage.
Learn More About Using Insurance Leads Correctly
While using insurance leads is mostly trial and error, you still want to follow this guide to ensure you are making more sales than errors.
This will help you to avoid burnout and increase your chances of having a record year of sales.
Are you ready to take on more leads and experience your best year of sales? Check out our leads purchasing options and get selling today!