When your insurance business is just starting, buying leads can be an effective way to supplement your client generation efforts. However, purchasing and tracking new leads is a full-time job, and knowing how much you should pay for quality contacts is hard. LeadSwami is here to help you understand the ins and outs of purchasing insurance leads with four tips on what to look for when buying.
How Much Should I Pay For Insurance Leads?
Lead Quality
The quality of the lead should be the primary consideration when determining how much to pay. High-quality means that are more likely to convert into paying customers will typically cost more. Conversely, lower-quality contacts with a lower chance of converting will cost less but may not be worth it.
Lead Type
Different types of insurance leads will cost different amounts. Those interested in auto insurance may cost less than those interested in life insurance because the former has a wider audience and higher demand. Consider the type of insurance leads you need and how much you are willing to pay for each potential client. More niche services may cost more due to their specificity.
Quantity
Buying in bulk often comes with a discount per lead, but balance quantity with quality. If you buy too many low-quality contacts, you may waste time and money on people who are unlikely to convert. Consider your budget and how many leads you need to generate a return on investment before purchasing.
Competition
If many insurance businesses compete for the same leads, the price for those potential clients may increase. Evaluate the level of competition in your industry and how much other companies are willing to pay before investing.
Think of buying leads as an investment in your business. Like with any investment, you have to put money in to get money out. Investing in the right contacts can generate a positive return on investment and grow your business over time. LeadSwami builds custom reports to ensure you buy quality leads in the right locations! Our custom insurance analytics allow you to review your conversions instantly and identify trends utilizing easy-to-understand graphs and charts. Contact us to learn more about our product today!