Many insurance brokers and agents feel that if they can't close most every single lead they buy, they're wasting their time and money. After all, leads can be very expensive and time consuming.

This could not be farther from the truth.

While leads do not necessarily translate immediately into more profit, they are one of the best business building tools available.

How is this possible?

Use the few leads you do close to build your client base. On average, every lead you close will result in 2-4 referrals per year if you work them properly.

The following are some ideas on how to properly work with leads.

* Ask for referrals from every prospect you speak with, including the ones you never sell anything to. Referrals are the best prospects one can ask for. But if you don't aks for them, chances are, you won't get any.
* Sell a package deal to improve credibility and retention. The average persistancy of a health insurance policy in which the client only purchased one insurance product is about 8 months. By comparison, if the client purchased 2 or more products as part of a package deal, the average persistancy goes up to about 2 years.
* Try offering service over price. Do not be fooled. If they've been online, they already know the price. This helps tremendously to separate yourself from the crowd. This is incredibly important because the prospect will almost certainly hear from multiple agents.
* And finally, create a professional email campaign, sending a minimum of 1 email per month to every single lead you purchase, whether or not they buy.

There is one other point to consider. There is rarely such thing as an exclusive lead.

How so?

Even if your lead source only sells their leads once, your the prospect has probably filled out their information with other sources.

Also, not all leads are created equal.

Look for leads that were generated from people actually searching for your products and services! Leads produced through SPAM, surveys and flashy pop-ups promising a free trip to the Bahamas or an ipod cost less, but overall prove to have poor conversion rates and retention.



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