# Secret Math of Making Money with Insurance Leads

To increase sales insurance agents should: “Put themselves in their prospective client’s shoes.” More and more consumers are shopping online for insurance. Thousands of insurance prospects go online to find local insurance agents everyday. The solution to contact these insurance prospects is an online lead service QuotesAuction.com available to insurance agents by subscription.

A number of things make QuotesAuction.com unique in the lead generation niche:

1. Quality of the lead, which is the result of a thorough multiple question form that consumers complete when seeking quotes.
2. Filters are available for certain lines of insurance such as auto, health, life, & etc.
3. Ability to segment a territory by state, county, or zip code.
4. The speed with which QuotesAuction.com gets the leads to agents.
5. Pricing of the leads and other financial considerations related to subscribing to the QuotesAuction.com service.

QuotesAuction.com focus is two-fold. First: to provide subscribing agents with quality leads. Second: to provide a quality experience to the consumer by providing enough quotes to make an informed buying decision. Insurance agents have a good experience with QuotesAuction.com, because of the quality of the leads and the ability to filter the leads to meet their underwriting criteria. At the end of the day, insurance agent is going to look at how much it has spent for leads and how many of those leads have converted to the sale of a product.

DOING THE NUMBERS
Here is an example of an equation you can use to help calculate how you make money on your QuotesAuction.com leads. This is based off a scenario of an agent that receives 100 health insurance leads a month with an average close rate of 5%.

100 Leads Purchases x \$7.00 Cost per health lead = \$700.00 Total Cost of Leads Purchased
x 99% Quoted
x 50% Connected with the Consumer
x 10% Close Rate on Consumers Spoken with
= 5 # of Policies Written
x \$450 Approximate Present Value of Commissions received over the life of one policy
=\$2,250 Total Commission Revenue Value Created
– \$700 Total Cost of Leads
=\$1,550 Revenue available to cover operating and fixed costs
/ 5 new policies
= \$310 Revenue per Policy to cover operating and fixed costs

Plug in your personal numbers to the equation above to calculate how much you make on your leads!