There is a perception that the purchase of a web generated lead, will in fact, a majority of the time, lead to an constructive conversation about insurance coverage and rates, and that a close ratio will mimic what an agency producer sees as an average for organically produced inquiries. This perception further purports that in return for a certain amount of money paid per lead, that the quality of those leads will show value and profit for the buyer, and that although not every contact will end in a sale, there will be enough sales and revenue generated to prove profitable.
Lead companies will further put forth the premise that those not succeeding with using purchased leads are lazy and untalented, not calling immediately upon receipt of the lead, not following up or not having the sales skills to move the process along to a close.
Agents or producers spending their money for these leads, without prior experience working paid leads, or desparate for immediate results seem astonished that the reality differs from the perceived, and that promises of high quality from one lead vendor to the next often don't deliver and that many leads, once received, usually don't even lead to any sort of contact, let alone a sale.
I offer my conclusions based on my own experiences, having spent thousands of dollars on leads, each time hoping the outcome will differ from the prior, wanting to believe the phone sales people from the lead companies and relying on their promises of making good what I consider to be 'bad' leads. I've been there and done that, and my conclusion is that for the most part, especially in high population and web savvy areas, is that the vast majority of paid leads are garbage and a waste of money and time. There may well have been a place and time when internet generated leads for P&C actually produced a high percentage of contacts and a fair chance of making a certain number of sales. But I velieve that time has long past.
I understand the mindset of not having the phone ring and feeling that somewhere out there is a place where only those really interested in a quote conversation fill out those lead forms and none of them are named Mickey Mouse or have email addresses of firstname.lastname@example.org
, but sadly, I have concluded no such place exists.
Trying to superimpose a list of reasons for this disconnect from reality is a waste of time. And judging from the numbers of solicitations for deals from lead companies that cross my email, many others are coming to the same conclusions as I.
I would welcome stories of success...