Why Agents don't buy Leads

Summary

In this episode of *The Insurance Life and Everything in Between* podcast, hosts Adam Ban and Chris Smith discuss why insurance agents hesitate to buy leads. They address fears of wasting money and self-doubt, emphasizing that lead generation is an investment in acquiring clients. The hosts stress the importance of self-belief in closing sales and advise agents to work smarter by using proven methods and investing in leads. They argue that if agents are unwilling to put in the effort or spend on leads, the insurance business may not be the right fit for them.

Takeaways

• 😀 Agents often avoid buying leads due to fear of wasting money on unresponsive or uninterested prospects.
• 😀 Lead buying is a form of marketing, and like any marketing strategy, not every lead will convert into a client.
• 😀 Spending money on leads should be viewed as an investment in acquiring new clients, not as an immediate cost loss.
• 😀 For $1,000 spent on leads, agents should expect to get 25-30 leads, and the goal is to close a few from this batch.
• 😀 Not every lead will be interested, but if a few convert, the return on investment can be substantial.
• 😀 Comparing lead buying to larger businesses' marketing strategies, it's important to understand that not every advertisement leads to a sale.
• 😀 The mindset shift is needed: don’t focus on the failure of individual leads, focus on the overall return on investment.
• 😀 If an agent doesn't believe they can close deals from leads, they may not be suited for the business.
• 😀 Self-awareness and belief in your abilities are crucial when deciding whether or not to invest in lead generation.
• 😀 If you're not going to work the system or commit to the process, lead buying and the business will not work for you.
• 😀 Ultimately, agents should embrace lead buying as a proven strategy for client acquisition, but it requires consistent effort and belief in the process.

Q & A

Why do some insurance agents avoid buying leads?

Some insurance agents avoid buying leads because they are afraid of spending money and potentially losing it without a return. They may also lack confidence in their ability to close sales or see leads as a risk of wasting money.

How can an agent make use of a $1,000 lead investment?

An agent can use a $1,000 investment in leads, for example, purchasing 25 direct mail leads, and expect to engage at least 3 to 4 clients who appreciate their mortality and would be interested in buying insurance.

What is the key mindset shift agents need when investing in leads?

Agents need to view their investment in leads as part of an overall marketing strategy, rather than focusing on the outcome of one single lead. The return on investment should be considered across the entire batch of leads, not based on individual results.

Is it a waste of money if a lead doesn't answer the phone or refuses contact?

No, it's not a waste of money. In the context of lead generation, one unresponsive lead is part of a larger investment, and not every lead will convert. The key is the overall return, not individual lead responses.

How should agents view their marketing and lead generation expenses?

Agents should view lead generation as a form of marketing, like any other business expense. The goal is to acquire clients, and even if not every lead results in a sale, the overall effort is meant to yield profitable returns over time.

Why is it important for agents to believe in their ability to close sales?

Belief in one's ability to close sales is critical. If agents don't trust themselves to convert leads into clients, they are unlikely to succeed in buying leads or investing in the business long-term.

What happens if an agent doesn't believe they can close sales?

If an agent doesn't believe they can close sales, they should reconsider whether the business is the right fit for them. The job requires confidence, and if an agent doesn't have that belief, they may not find success in the industry.

What should agents do if they feel they are not enjoying their work?

Agents should acknowledge if they are unhappy or stressed by their work and consider other career options. It's important to find a job that suits one's skills and interests, as well as offers financial and personal satisfaction.

How does the podcast suggest agents approach their lead investment strategy?

The podcast suggests agents should approach lead investments with a mindset of working what works. They should give the process a fair shake, invest in leads that have been proven effective, and focus on consistency and closing sales.

What is the general philosophy shared in the podcast about entrepreneurship?

The philosophy shared in the podcast is that entrepreneurship requires self-awareness and honesty. If an agent doesn't believe they can succeed with leads and sales, they should be honest with themselves and consider if this path is right for them.