Armchair Prospecting:
How Online Lead Services Are Changing Insurance Prospecting

Almost everyone uses the Internet these days. Online shopping and researching products and services are more commonplace. From 2004 to 2006, the number of online shoppers grew from 15 million to 31 million. As a result, online advertising and marketing are becoming the most effective ways of reaching potential customers.

How does this affect the insurance industry? Well, for starters, traditional marketing like Yellow Pages ads, direct mail and referrals are not working as well as they once did–even 10 years ago. Also, besides allowing for more "views" and "impressions" due to its ease of access, online advertising and marketing is easy to measure and quantify.

The downside? Internet marketing may be too complex (developing websites, banner ads, key words, etc. require programming as well as good design) and too expensive (costs have gone from a couple of dollars per click to $10–15 per click). That's where a lead service like NetQuote can help.

According to Laura Nelson, Sales Manager at NetQuote, of the 31 million consumers who shopped online in 2006, 40% of them visited a comparison shopping site for their insurance needs.

"Since NetQuote is the largest comparison site, the majority of the 40% came to us," she said.

Lead services not only allow for agents to advertise more effectively, it allows for more precise targeting of markets through filtering processes. Agents can pick the markets they want in order to gain the biggest returns.

There is a caveat to all this, however. While online prospecting offers an easier, more effective means of gaining new customers, the Internet can also be a very impersonal place. And we all know that our business is built on personal relationships. Therefore, while your prospects may want to start their process online, they don't necessarily want to buy online. They still want a human voice. So when you receive a lead, try calling them first before shooting off an e–mail.

A lot has changed in the insurance industry over the years, and perhaps the biggest change has occurred in the way agents find prospective clients. Online prospecting provides a faster, easier and more effective means of growing your business and becoming more successful.