New Producer Question

[new2independent]

I am new to an agency with 3 years of experience on the captive side. I am definitely at a great smaller agency that is looking to grow. We have excellent markets.

I have been doing cold calling and business after hours networking events for prospecting. I am focusing on small to mid sized commercial lines business but will also write personal lines as well. Does anyone have any prospecting suggestions? I am having some success with cold calls but doint this 35-40 hours a week can drive a man insane!!! Thanks for any advice.

[volstrike3]

Here is my 2 cents after a long day of prospecting while killing time before a 7pm board meeting:

There are many insurance marketing guru's out there that will claim to have the secrets that will make your phones ring off the hook... but there is no magic bullet. You need to cold call, use direct mail, network and build a reputation within the industries you want to target. Pick 3/4 niches where you have competitive products that many of your competitors do not have. Rotary, LeTip and Chamber of Commerce events are fine but you also want to join the industry associations that your prospects belong to. Go to those events consistently, make friends and have fun... resist the urge to "always be closing" and build a real relationship. As you become known those calls become warmer and warmer. People need to see your face and hear your message on a consistent basis to know that your legit and that you provide value. Keep in touch and follow through with everthing you say your going to do. Just doing that will put you in the top 25% of brokers. The bar is fairly low.

There are several (dozens, hundreds?) of agents/brokers that can get them a competitive quote. What else can you bring to the table that is of value to them? Every business owner is bombarded by vendors... don't be just another guy calling them 90-120 days out from their renewal offering "great rates, great service, been in business since 1905, etc".

[jimmyr1978]

In my humble opinion:

If you don't find a niche, you will become a quote processor rather than a trusted business adviser. You will not know the markets that serve the industry, and you'll always be competing with people who have more leverage with key markets than you do. Find 2-3 niches and serve them well. You will get to a point where every call is at least warm (i.e., they know you or have heard of you).

Which niches to target? Find something you enjoy and go after it. There is a guy at our agency who is a novice chef and has put together a great restaurant program - he was even endorsed by the state association. Another group here have a life sciences program, which competes with the best of them. Another used to be in the printing industry, and probably writes 50% of the printers within a 50-mile radius. OR, figure out where you've had success, and keep going after that industry. Get to be friends with the underwriters/field reps from the carriers - take them out to lunch, buy them drinks - and you'll be able to get more done than the other guys.

[18patrick9482]

I strongly agree that niches are critical to your success. Construction does have many niches, so you can focus heavily on construction as one niche which is very helpful for product and market knowledge as well as referals. ( The construction people all know each other.)
As a new producer with experience, the most important thing is to have meaningful prospecting activity goals each week. Hitting these goals weekly help you hit your financial goals, You need to monitor the financial results monthly to see if activity goals need to be adjusted. The emphasis on a daily and weekly basis must be on the sales activities for the first 12 months and these activities should always be a big part of your emphasis throughout your career.
Other things to consider include:
1. Become active in an independent agents association such as the MIIAB or PIA. You will make great contacts that will help you adjust to the many differences of being a captive agent.
2. Continue your education through CPCU, CIC or other programs that fit your type of sales. In addition to the knowledge and respect these degrees bring, they help you make important contacts.
3. Get to know insurance carrier employees that can help you understand their companies and how the independent agency business works. Contacts really do make a big difference.
4. When tarketing a nich market, as previous e-mails mentioned, become active in one or more of their associations.
5. Even though you have sales experience, take a sales seminar, read a few sales books and online or journal articles.
6. Read or skim through as many insurance journal and online articles as you have time for in evenings and weekends. There is a lot of great information out there that is free or inexpensive.
7. There are some advantages to starting in a tough market. All your business is new and you don't have the problem of shrinking renewals or losing renewals to competition. I started in a soft market in the early 80's.
8. 75% of sales is just being there. Be there for your prospects and customers. Trust, reliability, and knowledge can only be demonstrated if your are there for them.
9. The biggest key, as you may know from experience as a captive agent, is to always block out time each day and week for prospecting. There will be many things pulling you away from prospecting.
10. Collect the premiums. If you have ageny billing, don't carry anyone. Carrying customers is an interest free loan, and it will eventually ruin you!! Let me repeat, sooner or later it will ruin you!!
11. Have audits resolved promptly or notify the carriers in the prescribed contractual time frame that they are uncollectible, even if you're still working on a solution. If not, a large audit is your problem and this can be a large problem.
12. Have a great attitude. Many in the insurance industry forget what a great business it is and their negativity can affect your outlook. You are fortunate to have a great job in a great industry where the majority of the people are good to work with. You can help people, businesses and earn a good living.
Problems are opportunities and they are the reason you have a job. If there were no problems, the carriers would replace you in a New York minute.
How much can you earn? The sky is not the limit. If you have talent which you must have given your track record, you have the opportunity to earn a good six figure income ranging from $100,000 to $500,000 and possibly a lot more.
A retired boxer turned life insurance agent once said, "No man has endurance like the man who sells insurance."
Compared to sports, selling insurance is most like baseball. If you get up to the plate every day, the good days will outweigh the bad days, and over a lifetime, you can have a very fulfilling career.
Good Luck!

[18patrick9482]

As a follow up regarding prospecting. I started out in insurance sales right out of college and i faced many questions about my age and experience right at the start of the in person prospect meetings. I stressed the experience of the agency, the experience and financial strength of my carriers as well as the products and services. At closing meetings, I often brought in senior agents and talked of the the servicing team behind me.
I soon learned that most prospects didn't expect me to know everything as long as I was honest about what I did know and promptly got back to them with things I needed to check on.
I'm sure I lost some accounts because I was onlly 22 years old, but I sold quite a few and was a little surprised that so many would take a chance on a young agent.