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Should You Buy Qualified Insurance Leads or Build Your Own Pipeline?
- Mandy S.
- 2 days ago
- 3 min read
Insurance agents constantly face this question. This article compares the cost, ROI, and control of purchasing leads vs. generating your own using raw data platforms like Salesfully. It explores short-term wins vs. long-term sustainability and offers hybrid strategies.
In the world of independent insurance sales, the pipeline is king. But how you fill that pipeline is where the debate gets heated. Should you buy qualified insurance leads from a vendor promising immediate results? Or should you build your own prospecting engine using raw data tools like Salesfully?
This article evaluates both methods based on cost-efficiency, return on investment (ROI), long-term control, and sustainability. We’ll also explore a third route—hybrid strategies—that might offer the best of both worlds.
The Case for Buying Qualified Leads
Purchasing leads is seductive. You get names, numbers, sometimes pre-verified interest, and a promise of speed-to-sale. Providers like SmartFinancial, EverQuote, and even Facebook Ads claim they can bring you inbound interest for health insurance, life insurance, and Medicare plans in a matter of days.
But here’s the catch: These leads aren’t cheap. According to industry data from HHS.gov and lead vendors, a qualified health insurance lead can cost anywhere from $20 to $100+ per contact, depending on product and region.
Average Cost Per Qualified Lead (Health Insurance)
Source | Avg. Cost/Lead |
Facebook Ads | $25–$60 |
SmartFinancial | $40–$90 |
EverQuote | $30–$85 |
Live Transfers | $70–$120 |
While buying leads gives you speed, there are often complaints about exclusivity, recycled leads, or poor intent. You’re playing in someone else’s sandbox—and you’re paying premium rent.
The Case for Building Your Own Lead Pipeline
This option puts you in control of your marketing funnel. By using raw data tools like Salesfully, which offers filtered access to U.S. business and consumer records, you can customize your list by demographics, ZIP codes, age, household income, Medicare eligibility, and more.
Direct mail
Cold calling
Email campaigns
Text messaging
Social retargeting (via data upload to Meta or Google Ads)
“Building your own pipeline means you're not paying $70 a pop for a maybe. You're investing in a system that pays off over and over again,” says marketing expert Neil Patel.
And the costs? Salesfully subscriptions start at under $50/month for unlimited access. Paired with a basic mail or call campaign, your cost-per-lead can be under $5—sometimes as low as $1.
Relevant case study: Independent Medicare agent Brenda A., based in North Carolina, built her book of business from scratch using Salesfully data and direct mail over 18 months. She now writes 50+ policies a month and no longer buys leads.
According to HubSpot’s 2023 State of Marketing Report, companies that excel at lead nurturing generate 50% more sales-ready leads at 33% lower cost.
The Hybrid Strategy
The smartest agents often combine both strategies.
For example:
Use purchased leads during open enrollment periods when timing is critical.
Use data tools like Salesfully during slower months to generate warm leads through direct outreach.
Retarget previous clients or lapsed leads with re-engagement campaigns via email or SMS.
Think of it as farming and hunting: Purchased leads help you hunt, but data-driven marketing allows you to plant seeds and harvest your own.
💬 “We used to rely heavily on bought leads,” said James Patel, an agency manager in Texas. “Now we use those to get quick wins, but we spend 70% of our time building our own pipeline with Salesfully.”
Buying leads is like renting an apartment. Fast access, but limited control. Building your pipeline is like buying a home—more effort upfront, but far more equity in the long run.
