Today we are going to talk about telemarketed final expense leads, and using the phone to get in front of and sell final expense prospects. Let's get right to it!
Telemarketed final expense leads are a viable leads method to get in front of people who might want to buy burial insurance. Today's conversation will focus on why an agent would want to use telemarketed final expense leads. I'll also focus on what some of the cons are of using telemarketing leads. I like to tell it like it is, and give you both sides of the story. This way you can make your own mind up on what works best for you.
Let me start first by describing exactly what telemarketed final expense leads consist of. A telemarketing lead is when somebody -- a foreigner or American -- makes a telephone call to somebody that fits the profile of a final expense-type prospect. The caller asks that prospect for permission to get a follow-up call from an agent like myself to talk about final expense life insurance. Those are the basic roots of telemarketed final expense leads. There's a couple different types of telemarketing leads to cover near the end of this article. But right now let's talk about why one would want to use a telemarketing lead.
Telemarketed Final Expense Leads - Quick And Cheap!
First of all, telemarketed final expense leads have the benefit of a quick turnaround. If you read my articles on final expense direct mail leads, you'll learn that direct mail has about a 4-5 week turnaround time before your leads begin to come back. With telemarketing, it's totally different.
If you work with a quality vendor, you're going to get your leads back within 1-2 weeks. What that means is that as far as a capital investment, your leads turn around a lot faster. This means you're not "money in" a lot longer like you would be with direct mail. So the turnaround is fast and you can get out there and start working pretty quickly.
The other aspect is telemarketed final expense leads are a lesser average cost than direct mail. Where direct mail ranges $29 and above, telemarketing leads can be as cheap as $7.50, and as high as $20. This is where telemarketed final expense leads make perfect sense. If an agent doesn't have a lot of money to invest, and can't wait a month or longer to take a whack at some final expense leads, telemarketing leads are the perfect solution.
Why Telemarketed Final Expense Leads Are NOT A Long-Term Lead Solution
Why doesn't everybody do telemarketed final expense leads if it's less expensive and faster to turn around than direct mail leads? Unfortunately, some fundamental problems exist with telemarketing that make it less advantageous.
The first reason is the 'do not call' list. You probably know what the 'do not call' list is. It's a national and state-wide listing that if somebody puts their name on that list, they cannot be solicited over the phone. The telemarketer is at risk of a fine for each call that he makes to someone on the Do Not Call List. That leaves us with somewhere between 10-20%, conservatively, of all eligible people to call on that are not on the 'do not call' list.
Plus, you have the reality that most people don't have land lines. And with each year passes, more people "cut the cord" and move to cellular phones. What that leaves the final expense agent is less people to call on. This reality requires more geography to fulfill the telemarketed final expense leads that the agent wants. Whereas with direct mail, an agent may be able to stay in one county and work that county on an ongoing and continual basis.
When it comes to telemarketed final expense leads, you may need to have a three to four times as larger geographical area to fulfill the orders relative to direct mail. That adds to your cost. Not necessarily your lead cost. But your travel expense, your gas, your wear and tear on your vehicle. This is a phantom way that drives your costs up, and you've got to be wary about that. Even though the price point is lower, you still have more cost in windshield time and less efficiency when you go work telemarketed final expense leads.
The Quality Of Telemarketed Final Expense Leads Is Lower On Average Compared To Direct Mail.
Telemarketing is the prime example of what I call interruptive marketing. Interruptive marketing is when a salesman prospects and the potential lead is caught off-guard. They don't expect the sales call. They don't expect anything. They're just taken immediately and suddenly. That doesn't mean they're not good leads. It's just that when a telemarketer calls one of our possible prospects, they're usually maybe on the toilet, cooking food, watching television. They're mind is not on final expense.
So when we're talking to them, trying to solicit and generate the lead, their mind is somewhere else, and when we call back they say, "I'm not interested, I just wanted to get the person off the phone.” The result and the outcome for the agent is that you have less quality leads than you would with other vendors like direct mail. Again, there's a correlation between price and quality when it comes to leads. Generally speaking, the cheaper the lead, the cheaper the quality of the lead and that's no different with telemarketed final expense leads. The difference is that you can overcome to poorer quality with higher lead volume, and that's really the difference with telemarketing leads.
Why would one want to use telemarketed final expense leads then? They make a great way to fill any gaps in your direct mail lead generation efforts. If you get 10-20 direct mail pieces, you want to get 25, call up your telemarketing guy and get 10-15 extra. He'll be able to generate them pretty quick. This keeps you busy. It keeps the gaps filled and that's overall a very useful thing.
Different Telemarketed Final Expense Leads Options You Can Use
Lastly, just some suggestions and descriptions of different kinds of vendors in the final expense business, you've got three kinds. You've got local traditional telemarketing efforts with a live person, you've got voice mail/press-one leads, and then lastly you've got what we call avatar leads and I'll follow with a short description of all of these.
Traditional telemarketing is when somebody like myself cold calls and generates a lead. These are the highest priced. The quality varies depending on who's doing the calling, and price point is about $15-$25 depending on who you use as a telemarketing vendor.
The second kind is voicemail/press-one leads. What those are is the telemarketer asks the prospect to listen to a pre-recorded message on life insurance (they've got to get their permission) and then they're transferred to a recorded line. They listen to it and the prospect makes the decision to press one to leave their information or press two to just be taken off the call list.
You've got to watch out for these leads because voicemail leads are what's called robo-call leads. Robo-call leads are highly illegal. There's no wiggle room with robo-call leads and you've got to make sure you vet those leads. It would be a safe bet to stay away from anything like that because, first of all, they're most likely illegal, and second of all, agents have been sued. IMOs and big marketing organizations have been sued for using robo-call leads. There are people actively out there waiting to be cold called using the robo-call method so that they can take you to court.
The last kind of telemarketing lead is called avatar leads. Avatar leads are basically leads which are generated using a Filipino that doesn't speak to the prospect. Instead he presses buttons on a computer to deliver pre-recorded responses, objections rebuttals, opening statements, and closing statements.
It's kind of cool and I call it the 'terminator lead.' They feel no fear. They're never discouraged. They constantly keep going, and they're always the same whether it's morning or night. They deliver the same exact message every single time, which is incredibly powerful. Telemarketed final expense leads using the avatar generation approach tend to be a lower price point lead and the quality can be pretty good. If an area is really worn out, the quality comes down. But generally speaking, they're a quick way to get leads, and an effective way to deliver the message without human error involved.