Individual Health Insurance Leads

Discussion in 'Health Insurance and Ancillary Benefits' started by mschlange, Jul 22, 2017.

  1. mschlange
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    mschlange Well-Known Member

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    Wanted to see if anyone has utilized a vendor to secure individual health insurance leads? I have seen a vendor that charges per live lead. They pre screen the client and then transfer the lead to you the agent to sell what health products you can. You bid so much money per lead and I assume you complete with someone offer a higher bid that you might not get the call.
    With what I have available I make more money on individual than group health and can do cross selling so interested in what has worked for other agents.
     
  2. johndf
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    johndf Well-Known Member

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    A lot of the lead vendors are changing to that business model. You can call it the law of supply and demand, greed or a way to substantially increase your bottom line.

    My question has always been, that same lead used to sell for say $30 as an example, now with the bid situation I have seen health leads bid up to $65-$75 dollars for a health lead. You cannot tell men the quality of the lead has doubled, its the same lead. If you are going to get into bidding for leads be cognizant of the best use of your funds. You need to be on top of what your CPA is and if that bid model works for you. If not, don't get caught up in the bid. Usually deepest pockets wins.
     
  3. mschlange
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    mschlange Well-Known Member

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    I would assume if you're working a state that the population base is less than say California the bidding for the lead would be less.
    With carriers dropping plans the demand for leads will rise and then the market dictates the cost of the leads. The more leads and less competition should drive the cost of the lead down. I like the parameters where you can set the time you want to work leads and also what specifics you want on leads.
     
  4. johndf
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    johndf Well-Known Member

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    You are correct, but you have to be prepared for the ebs and tides. There will be times when there will be a lot of demand and the cost will shoot up and times when there will be minimal demand and there is value for the agent. Thats also true for the specific States. I do not like that inconsistency so over the years we have developed relationships with a couple lead vendors that work with our agency and agents that specialize in our space (individual, small business and self employed under 65 health). They provide us with exclusive leads for a fair price ($18-$23/lead). We have been doing this for a while so we know our numbers. Our agents close between 3-5 deals for every 20 leads. For our agency, its a lot easier when we plan our monthly projections to know as many consistent variables as possible. Plus our agents acquisitions costs are consistent.

    The challenge for most agents in todays market is they are inundated with propaganda from led vendors saying they have the best leads in the business. Unfortunately for the many agents by the time they find out if a particular lead vendor is worth their weight in salt, its to late. With that being said this forum is a great place to vet lead vendors before you invest your $. Best of Luck
     

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