Transcription
So, this video will teach you how to determine if your leads are good or bad. The most common question I get about selling life insurance is: "Do I need to generate leads? Do my leads stink? Why am I not making sales?" It's all about the leads. In this video, I'll share five things you can track to determine if you have good leads, bad leads, need a new lead vendor, or should generate your own leads.
Most importantly, this is what I calculate; this is what I look for in my lead system. This helped me sell over $500,000 of final expense insurance independently. More importantly, it helped me build a team at Legacy Family Life where we sold over $800,000-$900,000 every month in final expense premiums. It's because we have good leads, and you need good leads to make the money you want as a life insurance agent.
So, do your leads suck? I get questions like this every day: "I'm generating leads, but I'm not making sales. I'm spending too much money; I'm spending big bucks on exclusive leads, but I'm still not getting people to answer the phone, getting voicemails, or finding a good lead system. I'm trying to generate 12-15 leads per day, but I don't know if I have lead problems." If you have lead problems, this video will solve them. Let's talk about how to understand if your leads suck.
Okay, number one: Do you have a high dial-to-contact rate? If you're not tracking numbers or data, that's your first problem. To determine if you have good or bad leads, get a spreadsheet and write down every presentation, every dial, every pickup, and every sale. You need to track these core KPIs to understand your problems and issues. Issue number one is a high dial-to-contact rate. If you make 30 or more dials to get one person to answer the phone, you have terrible leads and need to switch. This means you're probably dialing six-month-old, year-old, recycled, or used leads. An over 30 dial-to-contact rate means you'll spend all day dialing without enough phone connections, and you won't hit your goals. You need to lower that rate. If you're getting an over 30 dial-to-contact rate, your leads aren't qualified enough. You need to improve quality by increasing lead speed, improving your landing page, or improving your advertising and messaging to avoid tricking people and generating higher-quality leads.
First, track your high dial-to-contact rate. Number two: Do you get a ton of spam or bad numbers? Whether you're in a call center, generating your own leads, or buying leads, track how many bad numbers you get. If over 7% of your numbers are bad numbers or spam (e.g., calling Bob, and he says, "This is Jim; stop calling me"), you have a problem. You could be spending all day calling the wrong people. If your leads aren't contacting the right people who filled out your requested form, you won't make money. Unfortunately, many people are sold bad leads and discover that most of their leads are bad numbers, wrong people, or blocked. If over 7% of the people you're contacting have bad numbers or spam, get a new lead source.
Number three: Do they have no idea why you're calling? This is common with bait-and-switch methods. If you're bait-and-switching people, getting inbound calls, and trying to switch them into selling a product—if they're calling for something free (e.g., "I saw the free kit on Facebook")—that's not what you want. If they don't know why you're calling, don't understand it's life insurance or final expense insurance, or think it's free, you'll struggle to make money. If you get objections like, "I thought it was free," or "I thought it was from the Social Security Administration," run far away from those leads. I see people paying $15-$25 for terrible leads, losing money. You can track this by seeing if you get less than 30% of your leads into presentations. If I generate 100 leads, I want at least 30 presentations. If I only get two, ten, or four, that could be a skills deficiency, or people hang up after 30 seconds without listening. If you don't get clear communication about what they're looking for in the first 30 seconds and are confused, and you're not getting at least 30% of your leads into presentations, your lead source is terrible.
On the backend, if you're making sales, what kind of deals are you selling? Many people say they have a great lead source, but all their business is guaranteed issue. If you're selling life insurance or any insurance product, guaranteed issue means less upfront money. If over 50% of your business is guaranteed issue (with a waiting period or graded benefits), you have a terrible lead source. Keep this number at 20%-30%. Just because you're getting leads doesn't mean they're good. You need a sustainable business, targeting healthy people with good medical conditions and jobs. There's a correlation between someone's health and retention; healthier people are more likely to stay on the books, have better premiums and policies, and make you more money. If you're selling a lot of guaranteed issue products (AIG, Gerber, etc.), your lead source is marketing to unhealthy people, using phrases like, "No health questions," "No waiting periods," or "You can have cancer and still get approved." This attracts an unhealthy demographic, you'll sell, but your bank account won't grow.
Finally, if it takes over 250 dials to make a sale, that's a problem. If you make 250 dials, you should make at least one sale daily. If you're making hundreds or thousands of dials daily and not making sales, either you stink, or your lead source is terrible. Track your dials per sale, guaranteed issue rate, presentations per lead, bad numbers, and dials to contact. Analyze your data daily to see if your leads suck. If so, change your lead source, improve your marketing, and improve your systems. If your leads are good, stick with it and sell more deals. I hope you enjoyed this video; this is how you determine if your leads stink or make money. Cheers!