Let me start by saying that there are several aged life insurance lead vendors out there claiming 2%-5% sales with aged life insurance leads. These numbers are completely false.
Is taking an application on 2%-5% possible? Over a small sample if you get lucky…sure it’s “possible”. Likely? Hardly.
We’ve seen the results of over 200,000 aged life insurance leads first hand.
First of all, we never like to talk about ROI because it’s different for everyone. Your ROI depends on your sales abilities, follow up systems, products, underwriting experience, etc.
With that said, an average agent can expect a 0.4%-.5% application rate to start and as you get better and you go through all your follow ups, you’ll get a 0.6%-0.7%+ application sent rate. This means out of 1,000 leads, you can expect to send 4 applications out. Sounds low doesn’t it?
Well, once you factor in the cost of these leads and the time you put in, there are HUGE profits!
Lets say you buy 1,000 leads at $.30 each. According to our averages, you should send 4 applications for $300. With a conservative average annual premium of $800, that’s $3200 in premium submitted. Lets say 60% of those policies place. You just spent $300 for a return of $1920. Over a 6:1 ROI! These are conservative numbers too.
Lets compare this to exclusive life insurance leads. If you purchased exclusive life insurance leads at $25 a piece, you would get 12 leads for $300. Do you think you could send 6 applications to 12 exclusive life insurance leads? No way. You’re lucky to get in contact with 6 out of 12 exclusive leads.
With all of that said, aged life insurance leads are a grind. There’s a lot of bad data you’re filtering through – that’s all part of working aged life insurance leads. If you’re willing to look past that and focus on all the great conversations you’re having, you’re going to have great results if you’re making the calls and following up.
We recommend buying 2,000 leads per order and re-ordering every 10 days and alternating lists. In other words, let one list rist a few days before calling it again and only after you call through your list 6 times, you can scrap it.
You’re probably thinking, if the ROI is so good, why isn’t everyone doing it?
Well, calling aged leads isn’t for everyone. Some agents can’t handle the rejection, aren’t willing to put up with the bad data that will always come with aged leads or aren’t up for the grind. However, for those hungry enough, there is no better ROI if you’re purchasing leads.