The whole purpose of this website and the products and services that I offer are to teach insurance professionals how to do online insurance lead generation for themselves as a way to e
Trang 1Understanding The Economics Of Online Insurance Lead
Generation
By: Jason Hornung – President Jason Hornung Agency, Inc
The whole purpose of this website and the products and services that I offer are to teach
insurance professionals how to do online insurance lead generation for themselves as a way to
end dependency upon the lead companies
I firmly believe that it's dependency on the lead companies that is killing the businesses of the vast majority
and that only those who learn how to leverage the internet for themselves will be successful moving into the future
Because insurance professionals have been conditioned into buying leads, one of the main
questions I get on my surveys and in coaching calls with my clients is "how much do the leads cost?"
You see, that's really a difficult question to answer because there are so many variables that actually contribute to what you pay on a per lead basis, because what I teach is completely different than buying a shared lead for $20 or an exclusive lead for $150
So in this post, what I'm going to do is help you to understand the economics of online insurance lead generation so that you can have a formula that will give you a basic idea of what you can expect to pay for the leads you generate using the methods that I teach
There's a couple of key components that are going to contribute to how much you pay for a lead,
so let's examine each of those and piece together the formula for determining your cost per lead
Each of these components can be manipulated and improved so that you can have a direct impact
on what you pay per lead as well You need to understand that This is the part of my training program called optimization
Online Insurance Lead Generation Cost Per Lead (CPL) Component #1:
The first thing that is going to contribute to your cost per lead is the traffic source that you are using and how much you pay for that traffic
If you don't know, traffic is having people visit your website How you get traffic is by placing advertising on different platforms that have links back to your website
When people click on those links, you get traffic In my training program, I show you 7 different platforms that you can advertise on that will drive traffic to your website
Trang 2Each of these online insurance marketing methods will charge a different amount for each of the clicks that you get to your website And all of them work on an auction basis, meaning you set a bid for how much you are willing to pay for each click to your site
You have total control over that We are going to refer to this as your cost per click or CPC from here on out A typical CPC can range from $1 all the way up to $5 depending on what traffic source you are using
Just keep in mind this piece for right now as I'm going to explain the next component and then I'll give you an example that utilizes the formula we are putting together here
Online Insurance Lead Generation Cost Per Lead (CPL) Component #2:
The next piece of this formula has to do with how well your site turns traffic into leads We call this the conversion rate of your website
Essentially the conversion rate is the percentage of visitors you get on your site that fill out your form and become a lead
There are a LOT of different things you can do on your landing page or website that will affect the conversion rate that you get on that page Again, these are things we discuss in great detail within my ALM program
Depending on how you set things up on your site, what type of insurance you are promoting and the offer strategy you are using, your conversion rate can be as low as 5% up to as high as 70%
In order to be able to determine what you will spend on leads, you have to know what traffic source you are using and what your CPC is for your campaign You also need to know how your site converts that traffic into leads
Obviously, if you are setting up a brand new system, you have no idea how your site is going to convert until you run a test campaign to find out
What I like to do when I'm setting up a new system is use some benchmarks for typical
conservative conversion rates and what I know I will pay for traffic to my site Then I can do the math backwards and figure out what I'd pay per lead using those figures
If my CPL doesn't work out the way I want, than I know that I have to lower my CPC, increase
my conversion rate on my website or perhaps both
As you can see, the economics of online insurance lead generation are tricky to figure out in the beginning But once you have actual data to work with, you can apply strategies that have a direct impact on your CPL
Alright, so let's give you the exact formula for figuring out your CPL with an example
Trang 3Let's say you want to run a test using Facebook traffic You can get clicks on Facebook for $1 each, so your CPC is $1 To run any valid test, you should have at least 500 clicks coming to your website
So your CPC X #of clicks = your campaign cost
In this example, your campaign cost is $500
Next you want to figure out how many leads you are going to get using this insurance lead generation method To do that you take the # of clicks (500) X your conversion rate To be conservative, you should plan on 5% conversion
In this example, you'd generate 25 leads
Then you simply divide your campaign cost ($500) by the number of leads you got (25) = your CPL ($20)
Here's the formula all in one spot:
Cost Per Lead = Campaign Cost / (Traffic X Conversion Rate)
Like I said before, you have a direct control over what you spend on the traffic and how well your site converts Those two items impact what your cost per lead are
Doing online insurance lead generation for yourself isn't a one size fits all solution like the lead companies provide Everyone is different, that's why you need to determine how much you will pay per lead by analyzing specifically what you are doing with your promotions
I hope that all makes sense
The three strategic pillars of insurance lead generation over the internet are traffic, conversion and optimization That's exactly what you'll learn in my Agent's Lead Machine Internet
Marketing Mastery Program
It's the most complete program ever developed to help agents generate their own exclusive insurance leads online
Now I realize that you may not be ready to jump feet first into this entire program yet
You probably have a ton of other questions about how all of this works That's why I put together a free video that will take care of those questions for you
All you have to do is click the button below and register on the next page You'll be able to watch this video instantly