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The Life Insurance Market

Monday, September 20

Can the Internet Lead Generators Sort Themselves Out? @ 02:18 PM

One of the biggest incentives to building an in-house lead generation system is when the outsourced led-generators indulge in a bit of wallet-lining! And now that these days everyone seems to be jumping on the lead generation bandwagon, whether it’s for life insurance, credit cards, car insurance, IVAs or whatever, it’s perhaps time to sound a warning and suggest some sort of trade-body and basic code of conduct is timely? After all, it’s easy enough to get started, but far too many firms, especially the newest ones, chase the fast buck by focusing on lead quantity rather than quality.

With IFAs set to move into protection as a result of RDR, we can expect demand for leads to pick up and one wonders how many IFAs will have to learn the hard way that online leads come in many variation, some even with booby-traps added for free? Often suppliers will turn to cheaper forms of marketing to fill order books more profitably; so rather than increase their spend on PPC they’ll make use of email shots, incentivised enquiries, second offering pushes and many other tactics designed to get people to enquire for life cover even though they don’t really want it.

All of this could end if there was transparency of exact lead source between supplier and broker, but many smaller players regard that as a trade secret because they fear contracts and competition. We are moving our business away from them fast and contracting for longer and paying more to those suppliers who have proven themselves honest and reliable. IFAs you have been warned!

Sunita Gill
New Business Manager
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