Life Insurance Leads, Insurance Leads, and the Online Lead Generation Business

I've long wanted to write an article about Internet Leads (Life Insurance Leads, Health Insurance Leads, Homeowner's Insurance Leads, etc) and why they are a waste of money, time, and a drain on the Insurance Industry. Thank you ezinearticles for this powerful resource in communication!

Insurance Agents all over the USA are getting solicitations every single day for one new lead program or another. The newest scam is Internet Insurance leads. Internet leads or leads generated on the Internet are 90% bogus junk?a diamond in the rough (in the forum of a good lead) occurs about once every 20 leads. That's roughly $400 to get to that good lead ? not to mention the biggest expense, labor and time spent on the other 19 leads.

Where are these companies going wrong, then, with their lead generation? Why don't these leads turn into clients? This article will attempt to address these questions.

Interested in knowing which "insurance lead" generating companies I am talking about? Just type in "life insurance leads", "health insurance leads", "mortgage leads" on google, yahoo, or MSN?they are DOMINATING the rankings!

The first problem is the way that these companies are generating leads. Some are using pay per click (PPC), some use aggressive (technical) techniques to get ranking in a "natural search" and some pay other webmasters to generate leads and send them to the lead company. NONE of them really know much about the Insurance Business?only how to generate leads.

Pay Per Click ? There are several companies like adwords.google.com and www.overture.com that will place your link at the top of the page instantly if you're willing to outbid other pay per click participants. On Google, the going price for the key word "life insurance" is about $20/click! The lead generating website will then take that lead and farm it out to about 4 different insurance agents. All of which will pay roughly $20 for that lead apiece. So the $20 investment there that was made for that click is multiplied by 4 = $80! And what does the client get? 4 agents calling them and trying to outbid each other. All using a variety of tactics, sometimes shady, sometimes legitimate, and sometimes downright outrageous?but that's another story!

Aggressive (Technical) Techniques - Another way that these lead generating websites get their site noticed is by getting ranked highly in natural searches. A natural search result is the links and description of a particular website that is found past the pay per click sites, about 4 sites down. Go to google.com and type in "life insurance quote". The first 3-5 sites are pay per click, then under that you find the natural search results. Google, msn, yahoo, and the like are getting better at weeding out the spam here, but it still persists and will probably always persist as long as there are SEO (search engine optimization) experts that are getting paid! What I'm getting at here is that these lead generating websites are getting to the top of natural searches NOT by knowing all there is to know about insurance ? but by being really really good at technical stuff like SEO, link exchange, and artificial means of gaining prominence.

Lead Brokering - The third and most shady way that these sites are getting these leads to sell is via other websites. Other websites that have prominence and "traffic" can get onboard with companies (commission affiliate brokers) that sell leads at wholesale prices to these lead generation companies. Why is this shady? Because these leads are generated by whatever means possible?SPAM, HACKING into other peoples sites and redirecting them to the affiliate site, buying of dead .coms and redirecting those visitors to the affiliate area, and on and on.

Roughly 1 tenth of the sites that are at the top of a search for any given term know anything about insurance or have any content of value for the consumer!

Another problem with the leads is that they are not screened well (although many companies boast that they screen the leads very well ? which, in my experience is just not true!). In my research, 90% of the leads from these Internet Lead Companies either left bogus contact information, they were not truly interested in obtaining insurance, they simply wanted a "quote", or would apply only to say "nahh, I can't afford it" when the policy came in (as applied for!). This is where the most waste comes in?manpower. Even with meticulous follow-up, the best rates in the business, a dedicated assistant and staff, and all the technological resources and underwriting resources at my fingertips ? even this could not make this type of lead program work.

So what does work and where is the Insurance Industry going with all this? I believe that people are shopping on the Internet. They'll even go to these lead generating websites, type in their info, and get an eager agent to call on them in hopes of a sale. The client, in this way, gets quotes! But that Agent RARELY gets a sale. The Agent, then, is spinning their wheels and focusing their resources on a wild goose. The client, if they do truly want to buy, then takes those quotes and finds an agent in the yellow pages or strikes up a conversation with a friend who then refers them to that trusted agent friend of theirs.

Therein lies the answer! Insurance is sold within circles of trusted friends and associates. It is certainly not sold over the Internet to any great degree and it never will be. My advise is to stick to the old fashioned way of marketing ? through Optimist Clubs, Rotary Clubs, LOCAL lead groups like BNI, asking folks "what do you do for a living" in hopes that they'll ask you what YOU do, and so on.

The insurance "leads" companies out there rest easy, though?knowing that they can always say that their leads are worth the money, that they're generated with the purest of intentions, and that they'll refund your money for bad leads. The truth is that these companies commonly blame bad leads on the agent's inability to sell or the quality and competitiveness of the companies that these Agents show these clients. They more often than not refuse to credit you for bogus leads ? often saying that there IS enough contact information (in the form of an email address which never gets answered by the client).

This scenario also leaves the door wide open for fraudulent claims in quoting. Think about it ? if 4 agents get the same lead, what gives one agent the edge over the other Agent? Some competing agents will do just about anything to get that sale or outbid the other agent. Outbidding the other agent leads to false claims and unattainable premiums based upon a client's true rating! There are so many variables like accurate underwriting, backdating, A+ or better company usage (or not!), and outright lies that harbor corruption. Any of these factors can be abused in order to lure the client to fill out the application. And that client is more likely to take the policy once it comes in (after months of waiting) just to be done with the ordeal. Bottom line ? the agent with the best quoted price wins, not the agent who quotes the client accurately and with good companies.

So if you're and Agent and you are thinking about buying insurance leads over the Internet, be forewarned. You will spend your time on wild goose chases, you will fill the pockets of these lead generating companies, and you will do the industry a disservice by supporting these companies who are using technology, not expertise in Insurance, to win YOUR customers - customers that can just as easily be obtained by traditional means.

If you are a "client" and you are looking for Insurance of any type, contact me and I can refer you to as many Independent, trustworthy, licensed, Insurance Agents in your area as you'd like at NO CHARGE!

By: Ashley Brooks, CLTC

Ashley is the marketing vice president for the Family Life Insurance Brokerage Business and has a background in Health & Financial Underwriting, Insurance Plan Design, and "best deal" shopping. Brokerage Services carries only A rated (or better) companies in their product portfolio and has been serving the needs of Independent Insurance Agents since 1977.

More Information about Mr. Brooks - Life Insurance Agent

Visit and subscribe my blog and RSS feed - Life Insurance Information

Team up with Ashley for Life Insurance Lead Sharing - Life Insurance Leads

What is Pet Health Insurance?

Pet Health Insurance can give you the peace of mind that you are covered against... Read More

Business Insurance ? And What You Need To Know

Getting your business up and running is exciting, challenging and hard work. You're finally making... Read More

Need A Car Insurance Comparison? Dont Have Time?

If you decide not to do a car insurance comparison and simply renew your insurance... Read More

Why Dont Insurance Companies Reward Us for Being Healthy?

Insurance is always a gamble, a bet actually.You are betting that you'll eventually get sick... Read More

Credit Card Insurance

A word of warning about Credit card repayment protection schemesThe people who sell you the... Read More

Health Savings Account (HSA): Helpful for Older People?

The Health Savings Account (HSA) is an amazing tool that a lot of people have... Read More

10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy can cost a few hundred... Read More

Life Insurance Benefits

Life Insurance is a legal contract between you and a life insurance company with the... Read More

Check Out The Variety of Auto Insurance Texas Style

They say everything is bigger and better in Texas, and this is true when you... Read More

Vehicle Insurance Online is a Convenient Way to Get Insurance Cheap

Online comparison shopping is a convenient way to get cheap insurance for your auto. For... Read More

Flat Insurance in the UK

What are the factors involved in flat insurance? Do I need to provide both buildings... Read More

Disability Income Insurance Can Meet All Your Financial Needs

Disability income insurance can cover you in the event of a severe accident or illness... Read More

Free Money Saving Auto Insurance Tips

Our money saving auto insurance tips were written for one reason - To Save You... Read More

Life Insurance Fears Post the London Bombings Tragedy

Following on from the tube train and bus bomb attacks in London there was a... Read More

Health and Dental Insurance Quotes - Applying Online

Since 2001, large health and dental insurance companies such as BlueCross and GE Financial have... Read More

How To Get Cheap Whole Life Insurance Quotes

Whole life insurance quotes the most expensive kind of policies that are on the market... Read More

Six Crucial Insurance Claim Possibilities

There are DOZENS of insurance claim possibilities which will increase the dollars awarded you in... Read More

Do You Pay Too Much For Your Car Insurance?

Do the premiums just seem to get higher and higher every year?It is amazing how... Read More

Natures Fury - Time to Check Your Insurance

The communities of Exmouth and Moora in Western Australia don't have a lot in common... Read More

Your Cars After-impact Diminished Value

The(ACV)Actual Cash Value Policy DOES NOT insure the property itself but the VALUE of the... Read More

Outside Pressures On The Typical Insurance Adjuster

Insurance adjusters are not without outside pressures they must deal with every day of their... Read More

Finding a Discount Car Insurance Broker

Discount car insurance brokerTimes past finding a discount insurance broker was important and offered you... Read More

How to Reduce Home Insurance Premiums

Here are some useful tips on how to reduce Home Insurance premiums.Home insurance, also known... Read More

Buildings Insurance and the Threat of Flood

What is the impact of increased flooding risk in the UK? What happens if your... Read More

Disability Insurance For The Long Term

Disability insurance covers you for an extended period of time. Should you be injured or... Read More

Medical Bills - Evaluating Your Personal Injury Insurance Claim

The value of a personal injury claim has a direct relationship to the amount of... Read More

Affordable Insurance Quotes To Save You Money!

Whether you're looking for insurance quotes for auto, life, travel or health you can find... Read More

Life Insurance, the Universe, and Everything

You may have noticed that life insurance is coming back into fashion. It's true that... Read More

Motor Vehicle Accident Insurance Claim Guide

This is a FREE Insurance Claim GuideYour "Motor Vehicle" can be a truck, car, motorcycle... Read More

Why Should You Purchase Your Auto Insurance Online?

If you're interested in slashing your auto insurance bill in half then there's no reason... Read More

Do Insurance Premiums Increase Every Year?

Many people ask, "If I am supposed to get a renewal discount, why do my... Read More

The Life Insurance Policy and Its Best Kept Secret

Do you love someone deeply enough to spend your hard earned dollars on a life... Read More

What You Need to Know About Auto Insurance

Let's be realistic, everyone needs to have auto insurance. Aside from the fact that almost... Read More

Finding California Truck Insurance

It's very easy to find California truck insurance on the internet today. No longer does... Read More

Accident Insurance Claim Personal Injury Insights

There's nothing that has a greater impact on evaluating a personal injury insurance claim than... Read More

A Guide to Insuring Your Sailing Dinghy

If you've just bought a dinghy or are thinking about changing insurance companies, Noble Marine's... Read More

Life Insurance Careers

Do you like to spend all day being sitting around? Fixed income is good enough... Read More

About Accidental Death Dismemberment Insurance Quote

We don't hear much about getting an accidental death dismemberment insurance quote as no one... Read More

Life Insurance ? Do You Need It?

Many people are skittish about life insurance, because they feel that it is useless, or... Read More

What Is Homeowners Insurance Coverage?

Before attempting to find the best homeowners insurance coverage you should make sure that you... Read More

Long Term Care and Long Term Care Insurance

A person might need long term care (LTC) if he/she cannot perform activities of daily... Read More

Indemnity Insurance For Landlords

As a property owner it is essential to protect yourself from the potential legal claims... Read More

Life Insurance Basics

One of the most important things you can do as parents is to ensure the... Read More

Cut Business Insurance in 8 ways

1. Comply with recommendations from company engineers and loss control. Naturally, the company will be... Read More

We Dont Need Another Broker: How To Get The Best Liability Insurance Rates Available

Some business relationships are forged through blood and friendship. When you work for a company... Read More

Handling Your Motor Vehicle Accident With Your Own Insurance Company

This "How To" article is crucial, up-to-date information concerning what to do if your insurance... Read More

All Auto Insurance is Not Created Equal!

Contrary to what you may have heard all auto insurance is not created equal. A... Read More

Useful Tips on Reducing Insurance Costs

Most people want lower insurance costs but are often too lazy to do anything about... Read More

Cheap Term Life Insurance is Available Everywhere

Cheap term life insurance is easier to get than most people think. Dealing with a... Read More

Need Low-cost Temporary Family Health Insurance?

Many families will find themselves without medical coverage at some point in their lives. So,... Read More