What Will A Car Insurance Agent Pay For Qualified Leads?
Qualified insurance leads are lifesavers to agents, who wish to make the most out of their earning potential. In the health sector, agents typically pay between $5 and $35 for a quality lead, but what about auto?
Since until recently, auto coverage has been the only insurance sector where coverage came with a mandate, how does that reality affect what agents are willing to pay? After all, an agent will have to navigate the murky waters of good, bad, and average drivers, to find prospects, who produce the most revenue for the least risk to the company.
As you would expect, what an agent is willing to pay varies widely depending on the lead type and driving record of the prospect. Here’s an overview of what to expect:
A shared lead is one that is sold multiple times to different agents. Shared leads have typically been sold between two and eight times. According to Mike Izni of the website InsuranceLeadsGuide.com, “The competition is obviously much higher with shared leads but at the same time most lead companies do offer carrier exclusivity which means you shouldn’t be competing with other agents from the same company if you are captive.” Izni adds that prices may vary from $5 to $15 and can go up from there, especially, “if you opt to add custom filter options or limit competition levels.”
Exclusive and “Best” Leads
According to Izni, exclusive leads are more challenging to locate and “are often available with smaller lead companies that don’t have the large volume to sell shared leads.”
“They take away the competition factor that you have with shared leads but that comes with a price,” Izni explains. “Depending on the service and type of insurance, exclusive leads can cost from $15 to $50 or more per lead.”
Bob Klee, founder of Hometown Quotes, saw that many insurance leads were becoming “aged, incentivized and recycled” and formed a new way of generating leads that has thus far stood out as the exception to Izni’s assertions, particularly regarding quality leads at low volume.
“I saw how the industry was changing and understood I needed to be creative and take action quickly to meet the needs of Hometown’s agents,” Klee said, adding that the company started sourcing leads “from only top affiliates and by generating them ourselves.”
Jason Traff, founder of the former car insurance comparison website Leaky.com, adds that the “best” leads have typically “seen the price and have a good record.” He also notes they may be looking to bundle with multi-car coverage and a homeowners policy. For this, Traff says you should expect to pay between $40 and $50.
Other Factors That Can Influence Lead Quality
Drivers, who stay out of trouble with police and with other drivers, are ideal. Agents also tend to prefer leads to be anywhere from 22 to 25 years of age because this group typically has less risk factors than juveniles or drivers in the 18 to 21 category. Also, if there are any DUIs on a lead’s record, that can drive down the price of what an agent is willing to pay.
Klee’s HTQ has been one of few organizations in the insurance leads business to specialize in preferred leads at high volume.
Auto insurance agents depend on quality lead generation to keep their businesses going strong. However, not all leads are created equally. Preferred leads, in which a driver is at-fault accident free, ticket free, at least 25 years of age, and continuously insured for more than two years, typically provide better prospects than when a driver has a history of tickets, accidents, and spotty insurance coverage.
Agents are willing to pay more for quality because it can yield an exponential return on investment. What is a quality lead worth to you?