Transformation of the Insurance Lead
Oct 21, 2014
Covers the last 4 years of the Insurance Lead Gen industry along. Talk presented at LeadsCon 2013 by Ian Smith. Powered by @QuoteWizard
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Transcript
Why are you here?
• Insurance marketing is huge!• $4 Billion+ a year• More and more of it spent online
Our industry’s wild ride
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Ian Smith
• Industry Veteran – First employee at QuoteWizard– 8 years of experience– Resident Super Geek
• Currently VP of Operations– Hack the business– Run our business intelligence unit– Evangelize people in Vegas
Outline
1. Insurance Leads2. Video Games
Why Video Games?
• A similar story to Insurance Lead Gen• More mature than Online Lead Gen• A Huge Industry
Who is this?
Nolan Bushnell and Pong
Atari 2600 home console
Atari 2600 for the home console
• Launched in 1977• Over 30 Million units sold• 136 first-party games• 381 third-party games• Created the home video game industry
Flaws that hurt the 2600
• No platform security – Anyone could make games– Court ruling prevented litigation
• Broken feedback loop with huge demand– Electronic Games didn’t start until 1981– No way to prevent sales of bad games– No way to punish bad publishers– Massive glut of third party games
What does this have to do with insurance?
The past four years
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
2009 2010 2011 2012
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
• High Paying• Small Buyer• Little Feedback
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
• Low Paying• Big Buyer• No Feedback
What did that do to payouts?
Leads and Average Payout
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
0
2
4
6
8
10
12
0
200000
400000
600000
800000
1000000
1200000
1400000• Demand outstripped • Offers focused on low payout, high volume• Growth became linked to volume
What’s going on here
1. New type of customer, new level of demand2. No feedback loop3. Too many ‘aggregators’
Too many ‘aggregators’
All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Too many ‘aggregators’
All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Too many ‘aggregators’
All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Too many ‘aggregators’
Pub All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Pub
Pub Pub
Pub
Pub
Too many ‘aggregators’
Pub All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Pub
Pub Pub
Pub
Pub
Too many ‘aggregators’
Pub All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator Pub
Pub Pub
Pub
Pub
Too many ‘aggregators’
Pub All Lead Buyers
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Aggregator
Pub
Pub Pub
Pub
Pub
We’ve seen this story before
1. No platform security 2. Broken feedback loop with huge demand
How did things change?
After the 2600
• They built security into their platform• They limited volume to match buyer demand• They offered a higher quality product
• Nintendo came along
How things have changed for us
Insurance Lead Gen Today
1. Customer feedback loop2. A secure platform
1. Customer feedback loop
• Buyers providing lead and publisher feedback• Aggregators can optimize• Incentives aligned:– Laser focus on CPA Goals– Payouts follow performance– Buyers are satisfied
ID Close Rate
Pub. 1 2.50%
Pub. 2 7.10%
Pub. 3 0.85%
Pub. 4 1.30%
Pub. 5 2.20%
Pub. 6 5.13%
2. A secure platform
All Lead Buyers
v
v
v
In Summary
• Insurance Leads have never been in a better place
• Buyers are expanding based on performance• Publishers, bringing high intent consumers,
are being paid to expand• Consumers are talking to more agents and are
more likely to buy
1. We’re privately held and financed2. We’re profitable3. We’re moving up – fast– Doubled Team– Doubled Agents
4. We’re trying to do something great– We want to be transparent– We want to be helpful– We want to talk to you
Thank You!
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