Facebook friends may lead to sales

Posted on: Tuesday, August 02, 2011

Read any magazine advertisement or television commercial and there will likely be a lowercase f housed in a blue box. As anyone who frequents social media knows, this is an indication the company has a Facebook profile.

Recently, a contributor to ProducersWeb noticed this and questioned why Facebook's popularity has exploded in the marketing world.

"Is it Facebook's enormously diversified pool of over 750 million active users?" the contributor asked. "Is it the ability to hone-in on specific demographics using Facebook's target market advertising?'

While the ProducerWeb contributor didn't have an answer to these questions, she did give insurance agents an understanding of how much "friends," - or in agents' case, insurance leads - are worth.

After reviewing data collected by the online marketing company Hitwise, one Facebook fan or friend results in approximately 20 visits to a company's website. This information was then combined with data from Techlightenment, another online marketing firm, to see if visits translated into purchases from that website.

The results? A Facebook fan is worth $136.38.

Of course, insurance agents don't sell products in the same way retailers do, but the results indicate that Facebook may be a surefire way to obtain insurance leads.

Posted In: Insurance News, Utilizing Social Media

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