Note: Darron Markwood, AIP Marketing Alliance Vice President of Marketing and Compliance Officer, is sharing his personal marketing/compliance opinions about social media in this three-part series. His opinions are not representative of AIPMA or Integrity and are designed to be informative and educational only. This week focuses on the marketing side of the social media marketing discussion. You can read Part 1 of this discussion by clicking here. You can reach him at darronm@aipma.com or (248) 312-2609 for questions or to continue the conversation.

The continuous evolution of social media marketing has become a double-edged sword for independent agencies and agents leveraging these platforms to maintain relationships with current clients or generate new prospects. I also know of multiple agencies who utilize paid ad campaigns on Facebook, Instagram, or other social websites in hopes of generating leads and prospects.

Truthfully, I’ve heard of some agencies who have expanded this business into a side project where their campaigns generate prequalified leads for certain products. I also hear from some of our wholesalers and agents who want to venture into this world by spending their valuable dollars earned through selling annuities and life insurance.

Let’s tackle the social media advertising concept this week. Have you ever gone fishing in the Pacific or Atlantic Ocean with a dusted off fishing rod and a bowl of worms from the local bait shop? How many hours have you spent out there hoping to catch a big fish or even a blue gill or a sunfish? Did you ever come back without even a bite and feel like you’ve spent a lot of time and money on nothing?

That’s why consumers charter boat services hoping their experienced fishermen, tools, bait, and other resources will lead to a successful day of catching larger and smaller fish to whet their appetite. The best part is even with all of these resources – you aren’t guaranteed to catch anything no matter where you drop your fishing line, how many times you drop it, and especially if the fish aren’t biting that day or time.

Welcome to the world of social media advertising. Despite these platforms promoting the ability to reach more consumers and generate “ready to buy” prospects with their wares, nothing is guaranteed with a lead program. Once the lead is transferred to the agent for follow-up, it’s in his/her hands to close the sale (whether prequalified or not).

AIP Marketing Alliance is transparent about purchasing leads, as depending on the product (annuity, life insurance, final expense), an agent may expect to close 1 or 2 out of every 10 leads purchased. In my opinion, this closing rate is standard in the financial services industry. Final expense insurance and Medicare leads typically are cheaper than annuity leads, so the closing rate on those products may be higher.

As a veteran marketing professional, I wish I knew the secret sauce to social media advertising and lead generation as the algorithms and customer habits change continually. I can write amazing content, direct an eye-grabbing video, and create some professional, outstanding graphics and campaigns that I feel will be successful on multiple platforms. I’d also be standing in line next to other marketing experts with larger budgets casting multiple fishing lines from their yachts in the same big ocean of prospects.

Whether an independent agent or an agency, do you have the budget to run a social media advertising campaign to generate leads for agents? Do you have the time to monitor these advertisements? Do you have the creative resources to tweak these campaigns as needed? Can you compete with established companies doing this for a living?

Let’s talk about some more factors potentially impacting your social media advertising other than budget and time.

• Targeting Your Audience: Selling an annuity is different than selling a final expense product due to multiple factors including income, lifestyle, location, and other demographics. Hence, the difference in lead costs. Is your 50+ year old businessperson spending time on Instagram or watching TikTok videos? Does a LinkedIn user want a final expense product? Trying to match your message with a prospect and a platform could have more twists than a Rubik’s Cube.
• Antisocial Feeds: As a regular social media user, I notice how algorithms feed my timelines based on what I click on or who pays for a “person like me” to view their content as potential customer. Digging through the clutter is aggravating and works against the whole concept of “being social” as the pay-per-play advertising isn’t ending any time soon.
• Real or Fake: Like it or not, AI has become more commonplace in social media. I’ve seen a few lead companies that use an AI-generated person with an AI-generated voice to sell products. Sometimes, it’s easy to see; others have perfected the almost realistic person. Ad companies are going in this direction, so be careful if you choose to outsource social media advertising campaigns.
• Back to the Compliance Reminder: Social media advertising companies are paid for results; they aren’t necessarily paid for their messaging. Annuities that make 20% are not realistic in this market right now. An AI-generated picture of a consumer sitting on stacks of $100 bills isn’t going to happen with most retirement planning products. Not every person qualifies for most products. You also can’t mention features of a carrier’s product without their compliance review. Don’t get labeled as a person promoting “fake news” as some people spend their time just looking for these things online.

I don’t want to scare independent agents away from social media advertising, but I do want to educate you about how you are jumping into an ocean with a lot of big fish with large budgets and much more experience working against you. It’s not as simple as clicking a couple of buttons, adding graphics and text (or having AI do it for you), and earmarking funds on an hourly or daily basis.

Please understand how you could waste your precious budget on advertising that may not generate a single lead. It’s almost like putting money in a slot machine – you may win occasionally, but most of the time, you are just feeding money into the machine and watching it spin with no results.

Like with most marketing return on investment (ROI) conversations, you may get some social media views and clicks, but conversions that generate real and actual consumer business are what pay your bills. I wish it was easier on social media, but it isn’t… leave the advertising to the experts who have found the secret sauce for now…

To wrap this week up, I recommend outsourcing social media advertising, but understand how important your role in the process is for the selected company. Ask for samples of their work. Request references. Have them provide closing rates on leads – not just how many leads are generated. See samples of how they have advertised in the financial industry. Don’t just say “that looks great” without understanding the implications of what they put together for you. Determine a reasonable budget and understand conversions may not happen for 3 to 6 months.

That’s this week’s reality check. Next time, I’ll focus on choosing social media platforms and how to leverage insurance carriers and compliant FREE content in our blog. In the meantime, you are welcome to contact me at darronm@aipma.com to share your thoughts or ask questions regarding compliant social media marketing.

We are #TheRightMIXin26 for independent insurance wholesalers and agents. For more than 40 years, AIP Marketing Alliance (AIPMA), an Integrity Company, serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. NOT AFFILIATED WITH OR ENDORSED BY THE GOVERNMENT OR THE MEDICARE PROGRAM.

AIP Marketing Alliance is committed to supporting our independent insurance wholesalers and agents. Visit our blog on aipma.com to stay informed on these upcoming launches and learn why wholesalers nationwide choose AIPMA as their distributor for selling life insurance, annuities, long-term care insurance, final expense, and much more. Ask about lead programs, access to IntegrityCONNECT’s technology, myAIP CRM platform with customizable recruiter portal, and online tools/resources designed to grow your business. The difference is personal.

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