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Friday, April 9, 2010

Making Money Online in the Insurance Market -- by Marc Charles

Dear Entrepreneur:

There's no denying it. Insurance is a multi-trillion-dollar industry.

Now you can profit from this market. And you don’t need to set up a neighborhood office, make sales calls, or wait to qualify for a license or special certification.

I’ll show you how in today’s post.

This might surprise you: The best time to launch an insurance company is immediately following a major catastrophe. I know it sounds crazy - but it’s true.

Immediately after a major disaster or catastrophe, smaller insurance companies are often forced out of business because of monumental claims from customers. (Their entire business is built on the low probability of having to pay out claims.)

Warren Buffett is the second or third wealthiest person on the planet (according to Forbes Magazine). His insurance and re-insurance companies endured huge losses in New York after the terrorist attacks on 9/11.

But it has been reported Buffet’s companies recouped all of their losses within six months.

They even enjoyed a profit shortly thereafter 911 because of a four-fold increase in premium charges.

A lot of smaller insurance companies and brokerages were not so resilient.

But you don't need massive start-up capital or millions of dollars in "reserve" like Warren Buffet (to cover the possibility of claims) to be successful in the insurance market. All you need is a computer and access to the Internet.

Opening a neighborhood insurance business is not a great fit for most entrepreneurs.

The thought of selling insurance over the phone or door-to-door makes most people cringe.

On top of that, a bricks-and-mortar type business can have substantial overhead costs.

What’s more, insurance companies and brokerages have boatloads of regulations, fees, licenses, certifications, and code requirements.

But there's another way to make money in the insurance business - actually, three ways.

Here’s how………

Promoting Insurance Affiliate and Lead-Generating Programs

The hottest profit centers with regard to the insurance market these days are affiliate and pay-per-lead programs.

And you can easily manage affiliate and lead-generation programs over the Internet.

An affiliate is a middleman. As an affiliate, you make a percentage of sales in exchange for promoting or marketing a product or service.

A lead-generation program collects specific information for a company - in this case, on a website - for a fee.

Here's a list of top insurance "affiliate programs" that you can start promoting on the Internet immediately and get paid for leads:

GEICO (highly recommended)
$6-$10 per lead.

US Insurance Online
Commissions of $3-$8 to start.

21st Century Auto Insurance
Pays affiliates $3 for every user who completes a free quote.

Answer Financial
Guaranteed $4 for every lead for Life, Home, Health, Auto, and Long Term Care Insurance, and Annuities.

A $47 payout for every sale. A second-tier affiliate program is available upon request.
$25 for each completed application for health insurance.

$5 to $10, depending on the type of lead generated.

Budget Life Insurance
$10 per valid insurance request (60 percent of profit) paid monthly.

You can also look into eHealthInsurance, Outlook Health, and Kanetix Insurance Shopping.

You can find dozens of similar programs on the Internet.

But these appear to be the most popular and viable.

Google AdSense on Web Pages Built Around Popular Insurance Topics

You could, for example, launch a website that focuses on natural disasters and calamities. You could feature articles on the site that help people deal with a catastrophe. Or you could include articles that teach people about natural disasters.

You could write the articles yourself. Or you could pick up hundreds of copyright-free articles from websites like, or

The next step is to place Google AdSense ads throughout your articles.

The code is super easy to install in your pages (or just retain a freelance webmaster to do it for you).
And here's the best part… When people click on your Google AdSense ads, you get paid (by Google).

Entrepreneurs are making tens of thousands of dollars every month on Google AdSense alone!

I love getting paid for stuff that’s just sitting on the Internet.

If you build the site properly (using meta tags, structure, page rank, back-linking, etc.), you will start to see significant traffic.

If you want to speed up the process, you can buy inexpensive traffic on pay-per-click (PPC) engines and networks like,,, and

You can also purchase prepaid keyword ads on places like ExactSeek. There are NO pay per click fees whatsoever - and no click fraud.

Web-based Insurance Comparison Site (This Is Hot!) 

One of the hottest trends on the Internet is comparison websites. You can see examples of them everywhere! Just Google the phrase “shopping comparison” and you’ll see what I mean.

The idea is to list as many insurance carriers as you can find and compare each of the rates.

Granted, rates change as often as the weather, and there are hundreds of variables.

But you can tell users that up front. Simply let people know that “actual insurance rates will vary - these rates are for general comparison purposes only.”

You can present these price comparisons on a static web page. In this case, the rates won’t change unless you update the HTML. Or you could present them with a dynamic feed like XML. In this case, you would simply enter all of the rate changes into a “form” and hit enter to change the rates on the website.

The more insurance companies you feature on your website, the better.

You can make the first couple of searches free, so people get a feel for the site.

But if someone wants to perform multiple searches, or use your site indefinitely, then simply require them to submit some information. You can ask questions that insurance companies want to know about their prospects.

Obviously, you’ll need to tell users this information may be used by third parties. And they’ll need to agree to these terms in order to proceed.

You can probably think of other ways to design your site. But you should capture information from willing users in whatever process you use.

Make sure you keep it simple. People will not sit around all day answering stupid questions. Simply ask for a user’s name, e-mail address, address, phone, fax, income, and basic insurance needs.

Once they hit "submit" and the system verifies their information (which basically means his or her email address is valid), they can search and compare insurance companies for FREE - indefinitely.

The information you’ll be capturing will be INCREDIBLY valuable to insurance providers. They will pay you cash for these leads.

Important Note: Like I said, you need to make it VERY CLEAR to people - BEFORE they fill out the web form - that a third party may use their information.
Granted, this will turn some people off.

But if you're generating 200 to 300 qualified leads from your site each month, the insurance companies will love you. And they’ll send you cash for these leads.
Depending on the type of information you collect, the leads can sell for as much as $40 apiece.

If you can generate 300 leads a month, this means up to $12,000!

What about marketing your website?

Anything you do on the Internet requires traffic.

The most powerful free traffic generators are Google, followed by Yahoo!, Bing, and MySpace or Facebook.

Purchasing keyword ads on Google can be expensive. The cost-per-click ranges from $.05 to $100. But keyword ads definitely work.

The secret is that Google is NOT the only game in town.

Thousands of search engines can deliver quality, targeted keyword ad traffic. And many of them can do so at a fraction of the top engines.

The trick is to start out small on the cheap engines. Test various keywords and phrases. Once you have a winning combination, graduate to Google. Place those winning keyword ads on Google, and let it rock!

The neat thing about making money in the insurance business on the Internet is that there's no overhead. Once you have a "formula" (a website, AdSense, organic traffic, and keyword ads) up and running, it almost navigates on autopilot.

Quick Recap

1. Build a website around a subject related to insurance coverage - natural disasters, plane crashes, terrorist bombings, or train wrecks. Write original content or grab copyright-free articles at article-database sites. Post Google AdSense ads throughout the copy. Every time someone clicks on a Google AdSense ad on your website, Google will pay you. Generate and drive traffic to your site with Google organic searches and/or Google AdWords.
You can also buy super-cheap click-through traffic on engines like,, and

2. Build an insurance comparison website or engine. Allow visitors to search for free - the first time. But when they do a second search, ask them for some basic information. Insurance companies will pay you for these leads.

3. Become an insurance affiliate. The work will be entirely Internet-based - and you'll receive compensation via check or PayPal.

Valuable Resources / Insurance Comparison Sites
Comparison Market
Insurance Finder

1 comment:


Hi Marc,

I'm very interested in the insurance affiliate business. Do you have a course guide on how to set it all up? Do they you recommend anyone who can set it all up? Thanks

Donald Traylor