Are you wondering why I’ve given up on telemarketing insurance leads? Then, keep reading!
In this article, I’ll explain why I no longer believe telemarketing leads is a viable resource in most markets except one or two.
So, let’s get started!
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Historically telemarketing has been a great source of insurance leads. You would outsource the lead generation process to a vendor, and they would charge you per generated lead.
Or you would hire someone to make outbound calls, and you’d work with whatever came in.
But, the problem nowadays is that the telemarketing world has for the most part died.
This is mainly due to “Do Not Call” regulations and also the elimination of prior affordable strategies.
Because so many people have cell phones, it’s almost impossible to buy telemarketing leads that target the vast majority of the population.
And with an ever decreasing amount of people to call, the telemarketing industry has certainly become more challenging to navigate.
Plus, the risk of potential litigation is, without a doubt, higher than it was in previous years.
A True Story
However, before we go any further, I’d like to tell you a story I heard last year about an agent who bought leads from a seemingly legitimate telemarketing vendor.
Just doing their job, the agent followed up on one of the leads. But, the potential client ended up documenting the call.
He asked questions about insurance companies, started a paper trail, and on a follow-up call, told the agent, “Look, we’ve got to settle.”
Settle? That doesn’t sound good.
He then served the agent papers stating that she “violated particular telemarketing rules.” He gave a litany of reasons why. But the agent ignored it.
So, he took it higher and went directly to the insurance company and received a settlement out of the IMO.
I tell you this because there are people in the business we call “professional plaintiffs.” They sit around waiting for you to phone them. And when you do, they allege that you broke telemarketing compliance rules.
Then, they create a paper trail and charge you several thousands of dollars for each violation, even if you secured your leads through a third-party vendor.
You could ignore the issue. But if the litigant’s good, then they’ll put an immense amount of pressure on you to settle. And unfortunately, a lot of agents end up settling to make the problem go away.
And that’s the reality of telemarketing right now.
There are large IMOs (whom I won’t mention) that have issued edicts straight from HQ stating, “All telemarketing contacts will be terminated without warning,” because they have become targets for this kind of litigation.
So, when it comes to the residential market, telemarketing is 100% no longer viable. You’re simply asking for trouble. And it’s not worth the risk.
What’s worse is that even though you bought leads from a “legitimate” vendor, you can’t control all the variables.
If someone tries to sue you, they’ll claim that you’re still a big part of the problem. And there’s nothing you can do about it.
“If that’s the case, how on earth could telemarketing possibly still be viable?” I hear you ask.
Well, there’s only one, maybe two, positive telemarketing insurance lead strategies that, in my opinion, still work.
Medicare supplement leads have always been an excellent source for telemarketing insurance leads, targeting individuals aged 65 and above.
Just, for the love of God, make sure you stick to the rules!
If you’re an insurance agent in the business market, telemarketing is still a great way to connect with businesses.
One agent I spoke to told me he did all of his business over the phone – sight unseen. He opened his call by saying, “Hey, I’m an insurance agent. Are you interested in buying life insurance? Let me run some quotes.”
This simple strategy generated traffic every week. And the great thing about small businesses is that they cannot be put on the “Do Not Call” list. They have to accept solicitation.
This means there are still plenty of good opportunities to sell insurance out there. Just focus on business owners since the DNC rules apply to most residential buildings!
Those are my thoughts on why telemarketing insurance leads are a lost cause (unless you’re selling business to business).
But all is not lost!
There are different lead sources out there you can take advantage of, such as direct mail, Facebook, and other social media platforms.
I strongly recommend you invest your money in these routes.
In the business, we refer to these leads as “opt-in leads”. Since the client is the one requesting information, you can assume that it’s okay to call them.
I hope you enjoyed today’s article! Let me know your thoughts on telemarketing insurance leads in the comment section below.