In this article today we’re going to go into detail about the 7 best practices for generating final expense leads. This is very important because the crux of all final expense business is based upon generating leads and seeing people every single day and every single week. Without people to see, you’re without a business and you’re out of business pretty quick. This is going to be a quick overview of what the best practices are for lead generation and what you can do in order to maximize your results, as far as working in the final expense business.
#1 Use Direct Mail Final Expense Leads
I’ve written a lot about direct mail final expense leads on my website. They are the foundation to any agent’s success and any agent’s lead program who wants to consistently produce the most in pretty much any kind of environment and market. My recommendation is always to get on a lead program. In many states, sometimes a fixed price lead program is best. It’s always good to work leads that are exclusive and fresh to you; these are what matter the most in this particular game of business.
#2 Use Avatar Leads
Final expense avatar leads are a great and cheap source of telemarketing leads that you can invest in quickly and turnaround fast without a ton of money at stake. They’re not as good as direct mail, in my opinion, but they do have a role for agents who don’t have a lot of capital or who want a lot of leads pretty quickly and faster than what direct mail leads will do for them. I like them for that reason. They’re good to get started with as you don’t need to sell a lot to cover your expenses and profit from them. In fact, you can sell 10% of them and still profit in many cases.
#3 Prepare to Experiment with a Decent-Sized Quantity to Determine Long-Term Use
This is a good point because, as I go over best practices and types of leads, the truth is ultimately you’ve got to figure out what works best for you. I can’t tell you with certainty if direct mail with life insurance on it or with something else along with it or even avatars is going to be better or worse than anything else. Just like any type of marketing, you’ve got to buy a large enough sample size to determine if the type of lead is actually a good lead– or a not-so-good lead.
How do you do that? Well, my recommendation for direct mail is usually to start off with about 100 pieces (direct mail leads). My threshold to establish if a lead is good is to try to see if I can close at least 20%; then I feel pretty good about the lead source. Again, 100 allows you to try different areas, different kinds of people, and it gives you a better perspective because some campaigns are duds. Others are great, but you want more of an average result, so this is going to be good for you. Try 100 and that should be good.
Same thing with the avatar leads– if you try 100 avatar leads, you really should be able to close 10 deals, if not a little bit more. If you close 10, you’re doing just fine. The return on investment is going to be fantastic, and you’re going to have a good feel and determine if you like them or not.
#4 Always Have a Quick Turn Lead Program Available
One is the loneliest number in business– one of anything! One secretary, one salesperson, one lead program in the final expense business is not a good thing. Even the best lead programs get weak or, at times, may not work as effectively. Maybe there’s response rate problems, maybe the vendor is having issues. I remember one vendor that the whole place caught on fire, and people who were expecting leads didn’t get any for a while. You always need to have a plan B (or even a plan C) or some kind of contingency plan in order to combat issues that may pop up from time to time, and more specifically, it’s more important to have a quick turn/fast turn type of lead vendor on hand.
This can be many things– it can be an avatar or telemarketing type of lead; it can be aged leads. It’s always good to have access to aged leads if they’re available because you can buy them on demand. Also, even newer leads on demand are good too. Of course, with any kind of aged leads, unworked are preferable.
Also, you can do seminar marketing. It’s not a quick turnaround, but it is free, and if you prepare material ahead of time, you can do it a couple weeks in advance and have the seminar. That’s not too bad for turnaround.
The last kind is your own existing book of business. Calling on business for people you sold a policy to 6-12 months after is a great way to generate new leads. Not a lot of people do it, but as you know if you’ve been in the field long enough, many sales are made to people who already have existing coverage, so it only leads to the conclusion that, if you go see some of these people again, they’ll buy more from you. Go back and see them, go back and sell them. A lot of times their health has improved or they’ve stopped smoking, and you can sell them something better.
#5 Strive to Have the Best Problem in the World
I laughed when I wrote this because who wants a problem anyway? Guess what– life is full of problems and so are businesses. There’s no business immune from some worry or issue and, as in most sales-type businesses, it’s always about leads. Having enough leads is probably more of a problem than what kind of leads to have. So what’s the best problem to have? The best problem to have in this business of selling final expense is too many people to see. If you’ve got too many damn people to see and you’re buried in leads, I’m jealous of you because you don’t really have a problem. You’ve got a lot of money tied up in leads, but you know what? I’d rather have money tied up in leads I can get back out of instead of having to wait around for leads to show up because I don’t have any to begin with.
I used to try to keep a strict budget of leads always coming in, be very on top of things, but the reality is, as you’ll find, things happen and it’s not anything personal– leads get short-changed or they don’t come in fast enough, there’s vendor issues, etc. The great thing about final expense is that this is a scale-able business model, and you can scale up your lead purchases as easily as you can scale them down.
How do you get over having these issues? By God, why don’t you just go ahead and, simply put, have a lot of leads come in and buy more than you think you’re going to work and always run an inventory. I learned that in my third or fourth year, and I learned that, yes, I’m tying a little bit more money into leads. But you know what? My chances of having a fully booked day are much higher, which means I have a much higher chance of selling more business, which means it doesn’t really matter if I have a little bit more money tied up, and everything is OK and everything is cool. That’s my big tip there, and that’s easier to do once you’re more established and the ball starts rolling and things start going well for you.
#6 Consider Seminar Lead Programs
I mentioned this briefly in one of the best practice tips above. Seminar marketing is a cheap and effective way to generate your own leads with virtually no money invested (very little invested, I should say). The turnaround time is about 3-5 weeks to generating the leads. They are good quality business, and many of my agents who do a lot of business do seminars from time to time. It keeps the overall average lead price down because these are virtually free, they’re fun to do just to switch it up every once in a while, and people like the results from them. Definitely do them. I’ve got a whole program designed to explain how to do them, kind of like a ‘business in a box’, on how to find these places, how to present, the whole nine yards. It’s something that I’m passionate about, something that I’ve been successful doing myself, and something I like to teach.
#7 Consider Aged Leads
This kind of goes hand-in-hand with avatar leads. Aged leads are a good source of low-cost, high-ROI opportunity. My favorite leads to work are unworked aged leads. Not a lot of vendors have them, but they are available. We do have them for certain markets, and they’re just a great way to get started without putting up a lot of money for direct mail. I remember one of the things that helped me tremendously in getting out of the hole when I had the lowest point in my career were unworked aged leads. I got them, worked them, bankrolled the money, and it helped me to get back on my feet.
Those are my best practices as it relates to final expense lead generation. If you have any questions or concerns about lead generation, how to do them, any comments or concerns, go ahead and leave me a comment. I’d be happy to help you out and answer anybody who has a question. In the meantime, if you’re interested in learning more about my mentorship or lead program, go to my website to submit a form to contact me, and we can talk back and forth from there. Thanks for reading!