Insurance Agents: Where to Spend Your Marketing Dollars?

Most insurance agents have monthly marketing budgets. This amount of money should be set aside for marketing activities that may include financial seminars, public advertisement on television or in the newspaper, buying insurance leads or target mailings for a specific insurance product.

You have probably heard the following saying: “It takes money to make money.” In the insurance industry, you will likely need to spend a few dollars to make a good living. However, there is no reason to throw away good money. Your budgeted amount for marketing should be utilized in areas that address your target markets. For instance, if you want to prospect lawyers in the surrounding area, you could send a disability insurance mailer to a select age group of them

On the other hand, do not become poor because of your marketing budget. Your budget should never be more than what you can afford. Therefore, you should never sacrifice paying a bill, in order to spend more money for insurance marketing. Marketing should be a means for you to penetrate your target market and not to become poor, as a result of spending money to get your name on the lips of potential insurance prospects.

It is important for insurance agents to find a couple of marketing activities that work. It does not matter if it is financial seminars that focus on annuities or long term care insurance or buying insurance leads for permanent life insurance. As long as you can find qualified insurance prospects and convert some of them into sales, you should be able to justify the costs of your marketing efforts by measuring your return on equity. If you find that you are spending more on marketing than your sales totals from these activities, you probably need to shift more of your marketing money to more profitable sources of leads, whether it be television advertisement or target mailings for disability insurance for new homeowners.

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