InsuranceSplash.com
  • Services
    • Insurance Agency Websites
    • Insurance Agency SEO
    • The Complete Marketing Package
    • Online Advertising Services
    • All Services
  • Free Tools
    • Insurance Marketing Ideas
    • Website Marketing Ideas
    • Lead Generation Ideas
    • Facebook Marketing Ideas
    • Insurance SEO Analysis
    • Email Newsletter
    • Trusted Vendor Directory
    • Insurance Marketing Podcast
    • Blog
  • Partners
    • Client Referral Program
    • Industry Partner Program
    • Multi-Agent Solutions
  • Support
  • Testimonials
  • Contact
  • Services
    • Insurance Agency Websites
    • Insurance Agency SEO
    • The Complete Marketing Package
    • Online Advertising Services
    • All Services
  • Free Tools
    • Insurance Marketing Ideas
    • Website Marketing Ideas
    • Lead Generation Ideas
    • Facebook Marketing Ideas
    • Insurance SEO Analysis
    • Email Newsletter
    • Trusted Vendor Directory
    • Insurance Marketing Podcast
    • Blog
  • Partners
    • Client Referral Program
    • Industry Partner Program
    • Multi-Agent Solutions
  • Support
  • Testimonials
  • Contact

InsuranceSplash Blog

Insurance Lead ROI Calculator: FREE Tool for Agents

6/7/2021

1 Comment

 
​Buying insurance leads is expensive.

I hear that from agents every single day and I agree 100%.

But that doesn’t mean they shouldn’t play an important role in your marketing.

Where else could you spend money right now and be on the phone with an active insurance shopper within minutes?
Picture
​What other marketing initiatives do you have that are so easy to track the results of?

What other marketing can be turned on and off based on your agency’s day to day availability?

None.

And if I had a dollar for every agent who approached me about cutting out the lead companies and generating their own leads online I’d be rich.

But 99.9% of them will not be.

What I suggest instead, is make sure you’re getting the biggest bang for every dollar you spend on leads.

One of the ways to get the most for your dollar is to close more leads. I’ve put together some great resources about that here and here and here.

Now I’ve created a tool to help you determine which lead providers you should be investing your dollars with.

It’s called the Insurance Lead ROI Calculator and you can click here to download it right now.
Picture

What is The Insurance Lead ROI Calculator?

​The Insurance Lead ROI Calculator is an Excel spreadsheet to track and compare the return on investment (ROI) of all the different lead sources you purchase in your agency.

It is not for tracking every individual lead.

It’s for comparing ROI of your different lead sources over time to determine the provider(s) that make you the most money.

Why Did You Make The Insurance Lead ROI Calculator?

The majority of agents I know sign up with and continue to buy from lead providers based on stuff like:
  • Gut feelings about lead quality. (not accurate)
  • The price of leads. (not a measure of value)
  • Who has the best salespeople. (totally irrelevant)
  • That data that is in the leads. (helpful but not detrimental)
  • What other agents tell them. (very inaccurate)
  • What their managers tell them. (even worse)

​None of those factors are what you should be using (as a serious businessperson) to determine where to allocate your lead dollars!

The only way to determine the best lead sources for your agency is to keep track of your actual results!
​

But it’s a little tricky to measure.

So I wanted to make it as easy as possible to you to track and act upon.

​Should I Use the Insurance Lead ROI Calculator Every Day?

​No.

This is not a tool for daily use, it’s meant to be used once a month (or longer) when you have cumulative information about the results of your  different lead sources.

In fact, the longer period of time you track results from, the more accurate and actionable your ROI calculations will be.

​What Information Do I Need to Enter?

For each lead provider over the period of time you’re comparing you’ll need to know:
  • The total number of leads you purchased.
  • The total number of leads you closed.
  • The average cost per lead.
  • The total amount of premium for those sales. (you can get some good data without this, just not ROI)
  • Your average commission percentage.

​After entering that information, the calculator will tell you each lead source’s:
  • Close Ratio
  • Total Cost of Leads
  • Average Cost Per Sale
  • Average Commission Per Sale
  • ROI of every dollar spent

​What Type of Leads Should I Track?

​I recommend using this tool for lead situations where you purchase the contact information of a specific person who is actively shopping for insurance.

​What type of Leads Are NOT Optimal to Track With This Tool?

​I advise agents against using it to measure lead generating marketing that also has a branding effect or other residual marketing benefits.

Basically, it’s so much easier to track sales from an internet lead than from direct mail that if you use this tool to compare the ROI of the two methods against each other the internet leads will have an unfair advantage.

For example, if your agency did a direct mailer to 1,000 people, you can track the number of leads it generated, the sales, the cost per lead and the total premium written, but this tool wouldn’t take into account the brand awareness you created by getting your message in front of 1,000 people.

With that being said however, it CAN be used effectively to compare different campaigns that are essentially the same type of marketing.

For example, if you sent out 12 different mailers throughout the year, it would be a good tool to compare each of those 12 mailers against each other, because you’re comparing apples to apples.

​Okay, So How Does It Work?

First: Download the ROI Calculator File here:
Picture
Click Here to download the file

​Second: Only write in the GREEN boxes

The boxes that are GREEN are for you to fill in.

The boxes that are YELLOW will calculate automatically.
​
(Yes I know that is orange but yellow is hard to read and I think you get the idea)

​Third: Figure it out 

​Use the sample data I put in there to get a feel for how it works. I could go on in intricate detail but I think you can probably figure it out from there.

And if you have a question, just ask it in the comments below.

​Wrap Up

​If you think this is a cool tool that you can use, make sure to hit the Like button or share it on social media so I know you want more stuff like this.

And if you have a colleague or manager that would be interested please pass it along!

Hope this helps,
John
1 Comment
freezer repairs link
7/3/2023 07:18:58 am

I haven't used that calculator. I think it is less hassle to use that one.

Reply



Leave a Reply.

    InsuranceSplash

    The #1 Insurance Marketing Website for Agents. Free insurance marketing ideas, tools, strategies, and training to help agents succeed.

    Archives

    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    June 2012

    Categories

    All
    Agency Management
    Customer Service
    Email
    Guest Post
    Humor
    Lead Generation
    Mobile
    Podcasts
    Sales
    SEO
    Social Media
    Technology

    RSS Feed

InsuranceSplash Logo
The #1 Insurance Marketing Website for Agents. Free insurance marketing ideas, tools, strategies, and training to help agents succeed.
Copyright © 2023 InsuranceSplash All Rights Reserved. Privacy Policy

Helpful Links

Insurance Marketing Blog
Insurance Marketing Resources
Insurance Marketing Ideas
Insurance Websites
Facebook Marketing Ideas
Website Marketing Ideas
Customer Support
Contact Us

Follow Us


Share this page

Don't miss out!