Jack Burns
New Member
- 13
I have been marketing insurance on the web since 1999. When I first started I got REAL results. It was simple, John Doe was looking for quotes so he filled out a reply on a site that interested him and an agent would call. It was simple. If he wanted more quotes he would simply fill out more requests on other sites. Each lead was exclusive.
Enter the online marketing companies. They put up insurance sites without a license and mislead people to gain their trust. Consumers don't know any better and continue to fill out quote requests. Next - the consumer's phone is ringing off the hook. They wonder why so many insurance agents are calling? Sometimes the consumer gets wise and starts asking the agents how they got their phone number - only to find out that they are not from scamquotes, the site that was trusted with their personal information. Some consumers feel misled and don't buy but the marketing company continues to sell the personal info obtained over and over.
The problem here is that as an insurance agent I have to be licensed to solicit insurance. I have to follow mandated laws that are in place to protect the public from fraud and other unethical acts. I have a fiduciary duty and if I break the law, or if anyone complains about me, I will be held accountable for my actions.
With this information in mind we have to ask ourselves - what laws are in place to protect the public from a marketing company, or an unlicensed marketing person from misrepresenting insurance on the internet. The answer is NONE..
I have had lots of conversations about this topic with many government entities and nobody has a clear answer or solution at this point because there hasn't been enough complaints. We need to change this by complaining more. Please start complaining if a lead aggregator takes advantage of you.
A question I had for someone at the NAIC compliance department went like this:
I got a bunch of kids together and I am going to pay them to knock on doors and offer quotes for insurance. When someone is interested they will come get me and receive a finders fee. Is this legal....? Answer: NO... Why not? You have to be licensed to solicit insurance.
I already knew the answer before I asked. I pressed on: What is the difference between the kids in the neighborhood physically soliciting and the kids that solicit in the same neighborhood only on the internet? Reply: NOTHING..
The point is YOU HAVE TO HAVE A LICENSE TO SOLICIT FOR INSURANCE. ITS THE LAW. Why does internet marketing seem to be exempt at this point?
Being in this online marketing game is like the Wild West! These marketing companies like Quin Street, Brokers Web, All Web, Net Quote, Norvax, Hometown, Parasol, etc... come charging down the hillside to jump the train. When they ride back into the forest with all the money they have stolen nobody is doing anything about it. Where is the sheriff? Shouldn't we form a posse..?
I went to a convention in Las Vegas where all these marketing companies meet. The name of it is called Leadscon. I was appalled to learn of all of the activity that goes on with no regulation. I walked away realizing that all of the money that is being made in the insurance business today is not from selling insurance or building a worthy practice. Its from misleading the public and idiots like us.
I heard about a guy that is 27 years old that is making nearly $150K per month selling leads. No lie. His company says anything it wants to make an insurance lead and nobody is doing anything about it. No license, no continuing education, no underwriting, no liability, no laws, NO NOTHING. Most of you probably have bought from him and have been burned. The truth is that he thinks insurance agents are complete idiots and could care less about you.
As agents, we need to do something about this. NALU, NAIC, NAIFA....whatever..? Its not fair that we be licensed, complete continuing ed, conduct ourselves in a law abiding manner with professionalism while these marketing companies continue to use the insurance industry to make a quick buck. Maybe some of you don't care but the future of this business is right here on your screen and we have to pull together to stop these lead aggregators from using our own consumers against us. This is gotten way out of hand..
Enter the online marketing companies. They put up insurance sites without a license and mislead people to gain their trust. Consumers don't know any better and continue to fill out quote requests. Next - the consumer's phone is ringing off the hook. They wonder why so many insurance agents are calling? Sometimes the consumer gets wise and starts asking the agents how they got their phone number - only to find out that they are not from scamquotes, the site that was trusted with their personal information. Some consumers feel misled and don't buy but the marketing company continues to sell the personal info obtained over and over.
The problem here is that as an insurance agent I have to be licensed to solicit insurance. I have to follow mandated laws that are in place to protect the public from fraud and other unethical acts. I have a fiduciary duty and if I break the law, or if anyone complains about me, I will be held accountable for my actions.
With this information in mind we have to ask ourselves - what laws are in place to protect the public from a marketing company, or an unlicensed marketing person from misrepresenting insurance on the internet. The answer is NONE..
I have had lots of conversations about this topic with many government entities and nobody has a clear answer or solution at this point because there hasn't been enough complaints. We need to change this by complaining more. Please start complaining if a lead aggregator takes advantage of you.
A question I had for someone at the NAIC compliance department went like this:
I got a bunch of kids together and I am going to pay them to knock on doors and offer quotes for insurance. When someone is interested they will come get me and receive a finders fee. Is this legal....? Answer: NO... Why not? You have to be licensed to solicit insurance.
I already knew the answer before I asked. I pressed on: What is the difference between the kids in the neighborhood physically soliciting and the kids that solicit in the same neighborhood only on the internet? Reply: NOTHING..
The point is YOU HAVE TO HAVE A LICENSE TO SOLICIT FOR INSURANCE. ITS THE LAW. Why does internet marketing seem to be exempt at this point?
Being in this online marketing game is like the Wild West! These marketing companies like Quin Street, Brokers Web, All Web, Net Quote, Norvax, Hometown, Parasol, etc... come charging down the hillside to jump the train. When they ride back into the forest with all the money they have stolen nobody is doing anything about it. Where is the sheriff? Shouldn't we form a posse..?
I went to a convention in Las Vegas where all these marketing companies meet. The name of it is called Leadscon. I was appalled to learn of all of the activity that goes on with no regulation. I walked away realizing that all of the money that is being made in the insurance business today is not from selling insurance or building a worthy practice. Its from misleading the public and idiots like us.
I heard about a guy that is 27 years old that is making nearly $150K per month selling leads. No lie. His company says anything it wants to make an insurance lead and nobody is doing anything about it. No license, no continuing education, no underwriting, no liability, no laws, NO NOTHING. Most of you probably have bought from him and have been burned. The truth is that he thinks insurance agents are complete idiots and could care less about you.
As agents, we need to do something about this. NALU, NAIC, NAIFA....whatever..? Its not fair that we be licensed, complete continuing ed, conduct ourselves in a law abiding manner with professionalism while these marketing companies continue to use the insurance industry to make a quick buck. Maybe some of you don't care but the future of this business is right here on your screen and we have to pull together to stop these lead aggregators from using our own consumers against us. This is gotten way out of hand..
