What can we take away from this infographic? Well, if it’s costing someone $50 to buy 1 click, they’ve gotta be making a lot of money somewhere. These niches are expensive, but they make a lot of money. You probably wouldn’t want to go head to head with these guys, bidding for number 1, but you can take this info and put it to use on less expensive traffic sources. Like I posted earlier, research is key and this is some bloody good information, albeit light, that you can use when picking and choosing what type of affiliate offers you plan to run.
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Theres big $$$ in life insurance. The lifetime value of a customer is huge, to give you an idea, if a 35 year old non smoking woman takes out a $300,000 life policy the monthly premium is around $12/ month = $144 for that year, next year it goes up by around 7% per year. Chances are she'll also get her husband covered too. Males always pay bigger premiums, a 35 y/o non smoking male is around $20.00 and goes up by around 9-10%! If you're a smoker you pay 90% more and the % increase per year is around 2% higher (9% for females and 11-12% for males). You do the math.
The call center I used to work for paid me $60 commission for every policy I sold, so the customer acquisition costs are almost nothing compared to the Life Time Value of the customer. After 11 years the premiums are pretty much 100% profit because of the compound interest on premiums paid into standardised mutual funds. (the 300k has been paid for by the first 10 years of premium!)
So if our 35yo family drops off the perch at 70yo (its pretty hard to find affordable cover if you're older than 55) then the insurer has made 20 years of premium in PROFIT.
All of a sudden $54 per click seems VERY cheap.
So what are you saying Zac? It's better to invest my $$ in standardized mutual funds than to get a life insurance policy?
I came across this graphic also – very interesting and somewhat surprising information don't you think?
Most of it makes sense, as Zac said before, there are huge "EPCs" on these niches. The lifetime value of some of those clicks could reach tens of thousands of dollars.
Most of the insurance keywords are driven up by lead companies. They aren't licensed to sell insurance, but they sell the quote requests to agents for $18 each. They can sell the same lead over and over again. After a few months or a year they call them "aged leads" and sell them for a few bucks each.