Let’s look at why more life agents are prospecting with life insurance sales leads As a life insurance agent, your primary goal is to earn income from the sale of life insurance products to prospects who want your products. The key word is “want” your products.
Too many agents compile a list of potential customers and “chase” them with the idea of reviewing their personal or family insurance program. This method does create new customers by the sheer numbers of prospects approached. According to documented survey results, for every 100 prospects contacted to review their insurance or financial plan, only 1 new customer is gained.
The reason these prospecting numbers are so poor is because the majority of prospects in a compiled list, who fit your demographic target market, may not need to review their insurance programs for any number of reasons. Perhaps they already have an agent, or they just changed their program, or they just don’t want to review it. Whatever the reason, the majority of names on your compiled list of prospects will not do business with you.
On the other hand, if you choose to contact prospects who have demonstrated that they actually want what you have to sell, your prospecting numbers will look a lot different. For example, agents experienced in using life insurance sales leads as their prospects are usually generating 25 new customers for every 100 leads contacted. That’s a big difference compared to chasing a compiled list of prospects.
The reason for the production increase is the fact that insurance sales leads are individuals who have “raised their hands” and have requested an agent contact them to discuss life insurance. Instead of chasing prospects, the agent is helping prospects who “want” to talk about life insurance, for whatever reason. By using leads, you transform yourself from being a pesky salesman to an expert consultant.
In future articles, we’ll discuss the mechanics of how to work with life insurance sales leads to gain 25 new customers for every 100 leads contacted.