3 Keys to Scaling Your P&C Agency Using Internet Leads

Internet leads: you either love em,’ or you hate em.’  Some view internet leads as a waste of time and money. Other agents are internet lead gurus who have leveraged these leads to scale their agency rapidly. 

You might be asking: can you really scale an agency using internet leads? Do internet leads retain well? The answer to both of those questions is -  it depends. That sounds like a cop-out. But it’s true! It depends on whether or not you know how to work internet leads. Many of the top P&C agents around the country use internet leads to scale their agencies. We’ve interviewed some of the top P&C agents that have maximized internet leads and put together three techniques for converting internet leads into paying customers. Let’s dive in.

Internet leads are an investment

Buying internet leads should be viewed as an investment that will pay off over time.  With internet leads there is not an immediate payout. Many agents think internet leads are something they buy once, call through, and then never deal with again. That’s wrong. Most of the top agents that use internet leads to scale their agencies know that the true value and Return on Investment (ROI) from internet leads is realized over an extended period of time. 

Here’s a real-life example: At Todd McLain’s Farmers Agency, internet leads typically have a 2% closing ratio in the first 4 months. That means Todd’s team is working through those leads, calling multiple times, and trying to convert them into paying customers over those first 4 months. Unfortunately, a 2% closing ratio does not return the investment Todd made on purchasing those leads.

But if we fast-forward 18 months, we’ll find Todd’s closing ratio on those exact same internet leads is now 8%! He quadrupled his ROI on internet leads by continuing to work them for an additional year. With an 8% closing ratio, Todd’s internet lead ROI is now more than sufficient to warrant the purchase, as he’s generating tons of premium off the leads. 

Use the right systems to close internet leads

So, how was Todd’s agency able to 4X the ROI on internet leads over a one-year period? His secret (and the secret of other top agents) is to use a smart lead management system that keeps track of leads and automates follow-ups. The challenge most agents face with internet leads is keeping track of them and following up at the right time. The only way to properly manage this process is by using automations provided by your lead management system. 

What Todd did was quote and sell as many policies to his internet leads as possible in the first 4 months of purchasing them. Then, he set up workflows and automations that would automatically reach out, follow up, and try to close those leads several months or even years down the road. By using automations, Todd never has to worry about losing track of any leads who were interested but not ready to purchase yet. 

Todd uses Agency MVP as his Smart Lead Management System. Agency MVP keeps track of his leads, so Todd’s agency knows when to follow up with the leads. Agency MVP also has smart workflows (automation). He has set up workflows so that internet leads are immediately placed on an automated campaign. Then, after several months if they couldn’t close the sale, the campaign automatically transitions to reaching out prior to their next renewal. This campaign will continue to run for each renewal for up to three years at a time unless halted (which is done by making contact with the household either via phone or text).

Ultimately, if you aren’t using a smart lead management system, you can’t compete in today’s market. The key here is that you have to set up those systems to realize the true ROI on internet leads which will allow you to rapidly scale your agency.

Building a data set

Think of internet leads as your own personal data set of potential customers in your area. Some might be ready to buy from you today or tomorrow, and some may not be ready until next year. The thing to focus on here is the idea of having a ‘data set.’ A data set is just a list of leads that includes all data you can gather about them. What does that mean? It means you know these individuals are in the market for insurance, it’s just a matter of timing, rates, and other factors that will convince them to close with you. 

Second - you need a data set of potential prospects. Without a proper data set, you won’t be able to scale. When you call through your leads list, be sure to take notes on what they say and input that into your lead management system. That way, you can create those necessary automations that will turn those leads into customers down the line. 

When it comes to seeing success with internet leads, the key is data and having a system to keep track of it all. There’s a reason why the top agents around the county use internet leads to scale their agencies. Hopefully we’ve helped equip you with some of their top techniques and insights into scaling your agency using internet leads as well.

For more great info on the insurance industry, check out our podcasts at Insurance Agents Think Tank.