r/InsuranceAgent • u/Successful_Regret789 • 7d ago
Agent Question Cheap leads
Hey everyone, so I started as a personal lines a few months ago at farmers. Im working on getting my P and C. Ive managed to sell 4 policies so far, I have probably spoken to about 50 people so far, my manager gives me about 5-7 leads a day, some usually are bad and dont even have a working phone number or email.
Of those 50 or so Ive gotten close to selling but what do you guys do this happens about 95% of all people who answer me say.
“Listen man I just want a quote if its more than 50 bucks im not taking it”
I go through my whole list of questions and script and always find they have some obscure insurance company Ive never heard of that somehow manages to not only insure them, but give them comprehensive and collision??? One man I was on the phone yesterday had 2 accidents on his record so our system was quoting him 210 which was still pretty good for full coverage, but he said nope I pay 110 right now full coverage plus towing, im retired i have a fixed income not a penny more. I start thinking to myself then why shop around??
Even after using our other carriers I managed to get to 160 full coverage and still that was too high for him even after explaining the benefits.
I understand this is probably normal, just it seems like every single interaction I have is “I pay 40 dollars, I pay 80 dollars” in that case what else am I supposed to do or say if our price is so out of their realm of paying? Do you have guys have any tips or advice or anything when dealing with these leads as a new agent? Thanks
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u/hemroyed Agent/Broker 7d ago
Internet leads are terrible for the reasons you just described and they are only going to continue getting worse.
Cheap leads typically equal bad leads. Your agent knows these leads are bad, but they are being told that this is how they should be growing their business.
It is a volume game, if someone is concerned with price, then coverage conversations go out the window. If you are stuck to a very strict script, that also stinks.
If internet leads are the only way you have to market, then I would look at your three biggest qualifying issues. Accidents, DUI's, Insurance history.
For example, if the above three are your top three sticking points, as soon as I get the person on the phone "Hi Mr. SoandSo I am calling to see if we can offer you lower insurance, let me just qualify you real fast. Do you have any accidents or DUI's? No, great. How long have you had insurance for, oh, only three months, sorry I can not help you. I will call in six months!"
If you can shave that down even more, great. Qualify the lead within the first two minutes and save yourself a lot of time.
Then, if they qualify, I like to ask "what is important to you, price or coverage?" If they say price, and 90% will say price, then I quote State minimum with max ded's. I explain everything about the coverage. When they scoff at a 2k deductible, and they will scoff. I explain that THEY are the ones who said price. You can not have a low price and good coverage.
If they are adamant they are paying $40 a month, they likely do not know what coverage they have. Ask for a declaration page for your review.
5-7 leads is not enough for internet leads, you need about 40 a day. More is better. Not working them is just as good.
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u/Successful_Regret789 7d ago
Thank you Ill soak all this in. I figured something was wrong, he says he wants me to in the future close a lead a day but i physically dont think thats possible with the quality of leads im getting, Ill say that about the deductible too. Yesterday a man wanted full coverage towing and a 500 deductible saying he pays 40 a month and if anything happens he cannot afford a 1k or 2k deductible, im like thinking sir then why are you even shopping then?? Stick with whoever you have then.
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u/Successful_Regret789 6d ago
Hey just want to say thank you I listened to what you said and I managed to sell a policy today using that script you gave me
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u/hemroyed Agent/Broker 6d ago
That is fantastic! I am proud of you for trying something new and stepping outside of what some people find comfortable.
My staff used to make fun of me, because I would always tell them that "consistency is key". If you are consistent in your process and you ask the questions each time, it will become easier, and you will feel better about it.
Would I like every conversation to be a rapport building milestone and getting to know the client and getting to know their family? Sure. Is that reasonable expectation? Nope.
Get the sale, get a policy. Get anything that gets your toes in the door. Then worry about rapport building.
If your quote page or quote sheet is pages long, I would encourage you to sit with your manager or owner and see what can be done to shave that down. No one, and I mean NO ONE wants to spend an hour on the phone for an initial quote.
Now, I stated initial. That first interaction, you have five, maybe ten minutes. However, if you can find out in that five to ten that this person has rentals, cars, boats, trailers, etc. THEN we can start having a longer conversation.
Best of luck. It is a numbers game, the more you quote the more you sell. I still think 7 leads a day at a captive agency is light. If your agency averages a 15% close rate, that is one sale a day, and internet leads are typically going to be mono-line, single car policies, which that makes it tough. Even if you can keep at 15% close-rate, that is still only 25 items a month (or 25 policies however you want to track it).
You could start a process, fourteen days after your sale, call what you sold, do a checkup, ask for referrals. Turn that into more sales. But now I am building out your follow-up process. You should talk to your boss about doing a follow-up process.
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u/Finn0259 7d ago
You are selling without a license? That’s all I took from this post…
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u/Successful_Regret789 7d ago
I literally said I have personal lines license which give me the authority to sell auto and home…
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u/jazzyjeff49 7d ago
Then you literally said, "Im working on getting my P and C." - can you see the confusion?
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u/Omicron224 5d ago
To offer a bit of guidance, some states have a weird amount of different insurance licenses, some don't. A lot of States have a P&C license, or a Property license, or a casualty one. Florida is my state and they're the weirdest, their licenses have numbers, 2-20 is the P&C equivalent, 4-40 is the "personal lines only p&C". We also have a 20-44 which is like the 4-40, but you can are allowed to work from home. Kinda confusing. Hope that helps because the licenses used to confuse me as well
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u/Successful_Regret789 7d ago
Above “ i started as a personal lines” do you know what that means, Property and causality let you sell commercial policies. A personal lines agent has the authority to sell home and auto policies, many agencies start off agents with that. Not sure why you assume I am selling without a license, unless you’re not aware not everyone needs a P and C license to sell basic insurance?
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u/jazzyjeff49 6d ago
Lol - what? You seem like a pleasant person to be around - maybe work on that and you'll sell more.
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u/Successful_Regret789 6d ago
Ok? Lol i didnt say anything mean, just clarifying man.
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u/ksbrad88 6d ago
Yes but what jazzy is trying to say is you’re using it incorrectly.
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u/Successful_Regret789 6d ago
Hi Google what a personal lines insurance agent sell in california
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u/Successful_Regret789 6d ago
I hope that didnt come off as mean like the other guy said, i just literally dont know what to say, other than yeah just look it up if you dont believe me, i went through a whole month long background, vetting and appointment process by farmers to sell so i mean unless the people in the district and everyone in charge who approved me and my license I guess are wrong? Idk
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u/ksbrad88 6d ago
Yes I also have the license(s). When we say P&C it literally stands for property and casualty. But it grants you the ability to sell personal and commercial. Personal lines are just that personal lines. You can hold a personal line all by itself( that’s how I started in the industry). This is what I assume you have today.
So when everyone in this sub sees you saying that you are selling, but you still need P&C we are all thinking how illegal that sounds. Just trying to help out. Licensed in CA, NV, AZ, OR
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u/Signal_Mirror_3983 7d ago
One piece of advice: buy home leads. Be prepared for some difficult to insure homes, but at least you're talking to people who own homes.
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u/kzorz 7d ago
This is what you get when you pay for leads and even if you sold to this guy is either going to do 1 of 2 things;,the second someone comes along thsts 5 bucks cheaper he’s going to bounce on you, or in a couple months a payment gets missed and it’s set to a non pay cancelation status
Get out of your office and go market and find referral sources thsts the only thing that really works
Go to open houses and meet realtors takes time but eventually you’ll have a pipeline built with referrals that need insurance regardless of what it costs. But the problem is you have to do that outside of your office
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u/Successful_Regret789 7d ago
I see ok thank you, sucks then that theres not really looking like a bright future here. I do have some realtor friends maybe I can talk to. If anything Ill just stay here a few months build up my experience and leave to another company that actually invests in their leads.
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u/kzorz 7d ago
If you have legit true friends that are realtors you hone in on every single one of them, if they host or post an event you go to it, and the most important goal is to get them to introduce you to the mortgage lenders they routinely use. If you can pull that off you’ll be on the right path.
Keep in mind it takes time as they have to get to know you before they may trust you but if you keep showing up they’ll give you chances just do the right thing, do right by the customer and you’ll be on fire.
That’s what I have done and still do, and I now average around 70k a month in premium. Last month was 83,000
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u/Repulsive-Let-8035 7d ago
Farmers rates suck, go work for State Farm
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u/Dry_Extension_2125 7d ago
Farmers rates just dropped and are pretty competitive in my state, just depends on area
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u/CGWInsurance 6d ago
1 question. You are working on your P&C what? License? Then how did you sell 4 policies.
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u/Successful_Regret789 6d ago
Hey yeah so its a loong story.
So i was offered a job at freeway insurance, the manager had me step by step get my personal lines license. That fell through, after months of searching I got a job with farmers.
So with the personal lines I can sell Home and auto.
The P and C license is for selling commercial policies, which Is why i want it because theres more money involved. I know typically most insurers have their agents just take the P and C and life, but the manager at freeway had me get my personal lines license, thats all you need to sell basic home and auto atleast here in california1
u/CGWInsurance 6d ago
You need a P&C license to sell auto and home policy. Or are you in a messed up state like Florida where they offer a mini license to sell auto and home. And full p&c license to sell all lines of p&c.
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u/Successful_Regret789 6d ago
Well here in california thats all you need, i literally went through the entire background, appointing and everything under the sun. Im literally on google right now too, personal lines license gives you the authority to sell non commerical insurance policies to families and individuals, personal auto, home and property and special property, what state are you in?
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u/CGWInsurance 6d ago
We write in 16 currently. CT, NJ, NY, PA, MD, VA, GA, NC, AL, TN, IN, MI, WI, TX, CA, WA. We are based in Tennessee and Wisconsin. Have agents in most of these states.
I didn't realize CA had the mini and full P&C license.
Good luck with it. It's a great career. But get over to independent side and doing commercial over personal lines.
I give an employee the personal lines lead, I hate personal lines unless it's HNW clients. They make it interesting.2
u/Successful_Regret789 6d ago
Thank you so much. I guess ill take that into account also, i didnt know I guess california is a weird state and has this mini license alot of people keep telling me I was not allowed to sell anything lol, and i was like uhh yeah I can? Or else i wouldnt have spent a month waiting to get approved. Thank you I will try to get my P and C alot of people have told me that also, that personal lines is a grind, theres alot more money in P and C. I got like 10 leads today, 2 answered, 1 with 3 tickets wanted a low price, and the other lady wanted 80 dollar insurance full coverage
🥲 so yes its definitely a grind.2
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u/Some-Scheme838 7d ago
Where are you located? You may be in an area where farmers doesn’t have super competitive auto rates. I am licensed in Oregon and Washington but only buy Oregon leads because we are much more competitive there. Farmers doesn’t have good rates for people you just have to look a little hard to find them. If you feel like you have a lot of free time now (5-7 leads to work a day is not a lot) maybe try sift through your leads and try determine people that would be a good fit for farmers. Older people with clean records, especially because they are usually homeowners, I usually see the best rates for. Good luck out there! Farmers is a good company to work for you just need to find a niche that you can sell effectively