Sales leads will always be a budget priority for small and large companies alike. For example, in the insurance industry, insurance leads are the lifeline of any agency or carrier. With increasing technological innovations, generating leads and purchasing targeted leads are becoming essential tasks for those who want to maintain their competitive edge. 

It’s no longer a question about whether or not you should buy leads. It’s now become important to evaluate the quality of the leads you buy. All lead generation companies will tell you their quality is good, but the only way to find out is by asking the right questions and testing, testing and testing some more. 

Yes, it’s a perfectly legitimate question to ask if you want to know how your lead generation company generates their leads. Chances are that they do so from one, a couple or all of the following methods: through paid search, in programs like Google Adwords; from their own website(s); and from affiliate partners that send them traffic for a paid commission. 

There are myths out there, like “All traffic created from affiliate programs is low quality.” This just isn’t true, just as it isn’t true that all organic traffic makes for good quality leads. Most likely, your lead source is using some combination of methods too. If an affiliate program is quality, the leads will be quality. If an organic website is good quality, the results may be fantastic (ask if they are on page 1 or 2 on Google, go ahead). 

But remember that the very opposite holds true too: the quality of leads will be poor if the company is not generating leads with quality methods. Even a paid search has to be done properly (bidding on the right keywords) to find quality leads. Hence, you cannot skip the research and testing to find out which lead generation company is right for you. 

What to Look For

• Make sure to see sample leads before you buy. You don’t want to find out that the lead company gives too little information on the lead. A data lead is only as good as the critical information the company provides about that lead.
• You will get bogus leads. This is not a reflection of the lead company, unless most of the leads are bogus. A good company will have a strong credit policy so you don’t waste your money.
• Be open to testing different filters and volumes to see what works for you. Don’t expect your first round of leads to determine whether or not your lead source is a bust. You should give it a fair shake by testing different formulas with your account manager.

Types of Leads

Real-time Leads come to you as soon as they are captured, usually seconds after the prospect fills out a questionnaire or form. This type of lead costs more than other types of leads but they are easier to close because the consumer is actively shopping when they are contacted. If buying these in bulk, however, you’ll want to consider an auto dialer to optimize the process of contacting each lead as soon as possible. The main disadvantage of real-time leads is that there’s very little time to verify if the lead is legitimate and the contact information is real and accurate. 

Live-Transfer Leads are consumers who call for a quote and are connected with you through a call center if they fit your filters. These calls are pricey, but the nice part of live-transfer calls is that the consumer is contacting you, so you don’t have to worry about falling to the wayside due to dialing time. With that said, you must be ready to receive all of these calls or the lead may be wasted. While live-transfer leads work well to enhance an already-robust leads program, it’s not advised that you rely on these types of leads as your only source for leads. When possible, schedule calls to come in at certain times of the day when you know you’ll be able to take calls without interruption.

Opt-in Sales Leads cost less than the options above but they aren’t as fresh. Even though a lead may be a few days old, however, these types of leads are still able to be worked. Not only have the leads filled out a form online but they have confirmed via email so you’re sure you’re getting a real name and email address. 

Exclusive Leads ensure that you will be the only agent working these prospects. That is, unless they filled another form elsewhere or started a quote before being put in touch with you. Exclusive leads are limited, so using exclusive leads as your main source of leads may not work out. Supplementing your existing lead program with these types of leads is a great idea. 

Shared Leads go to multiple agents at once, so calling right away is imperative. Even though shared leads are shared with others, there is a maximum number of agents who receive each one (the industry standard is a maximum of 8 agents; some lead generation companies have a much lower maximum, like 4 or 5, so the odds are not stacked against you.). Plus, using certain filters ensures that you will not have too much competition from other agents. 

Search Leads are the product of prospects’ searches for insurance on the Internet. When clear interest is shown in getting an insurance quote (example: Googling “Auto Insurance Quote”) these individuals become available to you as a lead. With these types of leads, being the first one to make contact is the most important step to closing deals. Competition can be fierce with search leads, but the pricing can’t be beat.