Everyone knows that exclusive leads cost typically two to three times as much as non-exclusive leads. And they should. The lead provider makes less money on the leads even though they get twice as much since they are only sold to one agent. But if you are successful at converting non-exclusive leads, why would you consider purchasing exclusive leads at twice the price?
Value instead of Price
If you are the exclusive agent working a lead, you will typically have more time to spend with the prospect. It’s simply not as much as a race as it is with non-exclusive leads. You are also more likely to get your prospect to pick up the phone since there are not eight other agents calling at the same time you are. This boils down to more time for you to spend telling your prospect about the value you provide rather than how cheap your rates are. When this happens, you are always in a much better position to cross-sell or upsell your prospect. If you don’t agree with value selling, think about this for a moment. Selling value enables you to sell more products. Wouldn’t it be wonderful to do business with fewer people and make more money because you are selling multiple products to more people?
If the carriers you represent are on the high side of the ratings spectrum for a particular product, how will your prospect know? You know that your BOP carrier has a minimum premium of $500 when most of your competitors’ minimums are $350 but, your prospect will most likely not know this since they will not hear from your competitor. Exclusivity also prevents the low-ballers from getting your prospect's attention. Exclusivity prevents others from getting into your race and selling based on price only. Exclusivity also enables you to have more time with your prospect which allows them to be open to hearing about the products they probably didn’t consider. How many times have you written a BOP for a real estate agency and didn’t get their E&O business? Exclusivity helps eliminate the roadblocks to upselling products that your prospect didn’t even know they needed.
Since non-exclusive leads are typically priced at half of what exclusive leads are agents can typically purchase more leads, however that usually does not lead to more conversions. By sticking to exclusive leads, you spend less time chasing down prospects, and more time on the phone with your leads closing the sale.
The best advice is to try both types of leads for a serious period of time and track your results with each type of lead. Based on your tracking data, you should be able to develop your ROI on each type of lead and make an informed decision based on your product selection.