We hear it all the time that an agents level of success is in direct proportion to the following:
- Consistent source of final expense leads
- Defined process for setting appointments
- Not always relying on the same type of lead
We have worked with thousands of agents assuming the three elements above are true, you can have a great career selling final expense when you follow this basic rule.
Final expense agents should have at a minimum 20 new final expense leads each week.
Because the numbers show that if you have 20 final expense leads leads each week, you can expect to make 4-6 sales. If you compound those 20 new leads every week for 50 weeks, you drastically increase the number of prospects to set appointments with on a given week.
For example, your first week selling final expense you receive 20 new leads, and only end up connecting with 12 of those prospects. The next week you now have 20 new leads plus the 8 you didn’t reach the week prior. Now your chances of setting more appointments drastically increases.
Over the span of the year, you will have a large inventory of prospects to set appointments.
Following this process should yield you 3,000-5,000 in annual premiums sold each week. You can certainly sell more if you begin mixing in various types of leads to give you the best chance of success.
There are 3 common types of final expense leads agents are using in the field.
Telemarketed Final Expense Leads
Telemarketed final expense leads are the core of our business and the reason we started selling telemarketed leads was due to the high need for agents needing a more affordable option than direct mail final expense leads.
These leads are generated through cold calling a target market of individuals 50-80 years old with an average household income of $50,000 or less.
Most agents despise the phone which makes telemarketed leads so appealing. You can get the results of a committed cold caller to prospect for you and generate leads for you to follow up within 24 hours.
Upon speaking to the telemarketer, the prospects provide verbal authorization that they would like a licensed agent to contact them within 24 hours. At that point, the lead is plugged into our lead distribution system which is accessible 24 hours per day.
This fast turnaround is one of the major reasons agents buy tele marketed final expense leads vs. direct mail leads.
It’s critical you follow up with tele marketed leads quickly; preferably the same day as they have a much shorter shelf life than direct mail.
Tele marketed leads are the primary leads available through QLS.
Final Expense Leads Direct Mail
For as long as we can remember, direct mail has been labeled the best final expense leads an agent can work.
But, they are also the most expensive.
We are seeing more agents reduce their orders of direct mail leads and supplement with tele marketed leads, bringing their weekly lead count up for the same price they were originally paying for direct mail.
DM final expense leads are generated when a consumer receives a direct mail letter explaining that the government only pays a limited death benefit of $255. Often, they are given a choice of death benefit they would like to review. Upon completing the form in the direct mail piece, the lead card is return postage paid to the agent.
The reason DM has consistently been one of the best final expense lead sources is because the prospect must physically complete the lead card with the following information:
- Desired coverage amount
Due to this process, you (the agent) have a lead card authorizing you to contact the prospect and when you meet them you can actually show them the card they completed. Referencing or showing the client the card they completed, greatly increases your chances of setting an appointment.
What is the average response rate for direct mail final expense leads?
The national average response rate for final expense direct mail leads is roughly 1%, sometimes more and sometimes less.
For example, if you send 2,000 final expense direct mail letters, you should expect to get roughly 20 final expense leads back.
How much are final expense leads: direct mail
You can buy direct mail final expense leads 2 ways.
- Cost per thousand: This is the most common way agents buy direct mail leads for selling final expense. The cost varies based on a few criteria, but the average cost you can expect to spend (as of 2019) is roughly $470 for every 1,000 letters. If you multiply that by the average return of 1%, you’re looking at roughly $47 per lead.
- Fixed cost per lead: Fixed cost leads are relatively new to the final expense community in the last 5 to 7 years. Some companies will offer fixed price direct mail leads when you are contracted and appointed. We found that the companies offering fixed cost leads require volume commitments to offset the risks of low return rates. We do not offer fixed cost direct mail leads but can certainly introduce you to companies that do. Since we are not a licensed insurance agent and we are not an FMO, the fixed cost direct mail lead doesn’t fit into our model. You can expect to pay anywhere from $40-$60 for each lead.
Why buy fixed cost leads vs. mailing your own?
The reason why is because you have a level of confidence that if you pay for 20 leads that you are getting 20 leads. When you send the final expense mailers yourself, you have no control of your run rates.
Agents typically like the fact they can minimize their risk by using fixed cost direct mail final expense leads vs. the traditional cost per thousand model.
Facebook Final Expense Leads
As you can imagine, Facebook continues to grow as a popular source to generate final expense leads. What many agents say is that the final expense market isn’t online, yet alone on Facebook.
That couldn’t be any further from the truth.
How do Facebook final expense leads work?
Facebook allows you to build a custom audience based a number of targeting metrics. For example, you can target individuals ages 50-65+ that “like” or associate with companies or events that would indicate they are a prospect for final expense.
Once that audience is defined, an advertisement is created, and the users are given the opportunity to complete a form on Facebook requesting information for final expense or burial insurance.
How are Facebook final expense leads delivered?
Once the user completes the lead form, the leads are sent in real time to your email or phone via text. It’s critical you call the leads quickly and reference they filled out a form on Facebook.
How much do Facebook final expense leads cost?
Prices range, but you can expect to find them from $400-$500 for 20 leads.
About the Author:
In order to best serve our customers, we wanted to reach out to some industry experts on final expense to help provide with you the information you need to best understand final expense leads and how they can help your business.
We reached out to Drew Gurley who is the Founder of Redbird Advisors. They have an amazing blog dedicated to educating independent agents across multiple verticals in the insurance business, especially those learning how to sell final expense.
Drew has been a leader in the final expense industry for nearly a decade and is an active member in the Forbes Finance Council.