Eleven Untapped Sources of New Business Leads

An east coast agent surprised me, in the recent past, by revealing that he had run out of insurance leads. This amazing declaration came from someone living and doing business near the largest U.S. city of all, New York. His agency was licensed in multiple states and he had a mid-sized operation with a well-trained staff. Yet, here he was lamenting that he had completely run out prospects. A year or so later, he gave up, sold out, and left the business. While this case is the extreme, it does mirror some of the frustration that agents encounter while trying to locate prospective buyers. Here’s why.

The old sources are drying up. One of the main reasons why some agents struggle to make prospect connections is that they seek them out only from the most widely known sources. The centers of influence they most often target include accountants, attorneys, realtors, dealerships and organizations with open memberships. Problems arise when too many producers approach the same people. For instance, classic networking through participation in certain groups is becoming less effective. Too many agents in one civic or fraternal organization can cause their insurance-buyers to seek the services of a non-member. And accountants, once a wellspring of leads, are no longer satisfied with a thank you bottle of booze from the selling agent. Instead, they want to keep commissions from the sales that they used to direct to you. That’s why a growing number are getting their life and security licenses. Consequently, it’s time to tap into other prospect pipelines; to look beyond the most common sources. Use the ideas in this column as your starting point. Web pros, artisans and many others, can provide you with promising prospects. Just be careful when sharing leads, to pay close attention to all applicable privacy policies and regulations. Here are eleven relatively untapped sources of insurance leads …

Small independent Internet Service Providers. These 21st century utilities provide Internet access and host commercial Web sites. What makes them different from the large national ISPs is their local personal service. Sound familiar? Also like you, the “experts” have declared their survival to be in question. Regardless, these firms can make excellent sources for prospects. They often know which of their customers have growing concerns and which have insurable brick and mortar operations. But, this valuable information is rarely for sale. Instead, you must work for it by establishing a trust-based cross-referral relationship. If the ISP meets your needs, let them host or develop your agency’s site. Or at the very least, buy some Internet access from them. Then if you like their service, refer your clients their way. In return, ask them for commercial referrals. Another benefit of prospecting through an ISP is that they work closely with independent Web site designers. These specialists, in and of themselves, are hot growth prospects, but they also have their own commercial clientele. You can cross-refer with them, as well as the ISP. By simultaneously developing relationships with designers, you can hedge your bets against the demise of the small Internet shop.

Builders and general contractors. These influential operations do business with a vast network of subcontractors who can be referred your way. Since many subs rely heavily on their GCs for jobs and business advice, they may be glad to hear from a referred professional who is familiar with their insurance requirements.

Alarm installation companies. Security firms come in varying sizes, from one-man companies to major concerns. And each one has a client base of solid P/C prospects: the security-conscious commercial and residential property owners they do business with. As an added plus, their sales people already talk about insurance, at least in terms of credits for the alarm products and monitoring services they sell. So, it’s not a big step for them to also suggest your services. Starting point: Provide each security firm with a set of laminated charts that show the typical insurance credits allowed for each type of alarm they install.

Commercial printers and sign makers. Tradesmen frequently have advance notice about which of their customers are merging, moving or expanding operations. This type of heads-up information can lead to some excellent sales opportunities, before the news becomes common knowledge. All these bird-doggers have to do is casually bring up the subject of business insurance with their customer, culminating the discussion with a promise “to have my agent call you.” In exchange for these advance-notice opportunities, you can provide them with quality leads from your client base, using the same “I’ll have them call you” approach.

Computer and copier maintenance firms. Businesses like these already sell a form of protection to local businesses: the maintenance contract. They may be willing to suggest your firm’s services as well, especially if you don’t directly compete against them.

Movers. These teamsters literally have inside information. They have the rare opportunity to view a prospect’s personal property in entirety. Like commercial sign makers and printers, movers too have some advance knowledge of where the action is in your community. And as a bonus, their pricing agents are already in the habit of discussing moving damage insurance. So, it’s not a big step for these outside sales pros to recommend your services to local individuals and businesses. Your CSRs and producers can compensate them for the leads that you are given by suggesting their services to agency clients who are on the move.

Swimming pool installers and cleaners. Everyone with a swimming pool needs an umbrella policy, and pool installers and cleaners know exactly who they are. These pool people can include agency inserts in their bills or newsletters, promoting the importance of a personal umbrella. In exchange, you can feature the pool companies, especially those you insure, on your Web site and in your newsletter.

Restaurant booth builders. This is a somewhat specialized area of upholstery, where booth makers work almost exclusively in the restaurant and diner trade. When performing their work, these craftsmen spend a lot of time working with the eatery’s management, and can easily bring up insurance, and your agency, as a topic for discussion.

Short-term storage. People and businesses that use temporary storage facilities are often in the process of moving to permanent quarters. Their new premises are usually not yet insured because they’re in a pre-closing state. A handpicked group of storage customers like these can make excellent property insurance prospects, if you know who they are. Ask local mini-storage operations to distribute preprinted information about your agency to their customers, in exchange for recommending their services to your insureds.

Wholesalers. These firms provide products to a large network of retail and service operations. Auto parts wholesalers, for example, do business with a long list of local auto parts retailers, collision shops, muffler and brake installers, gas stations, etc. You would do well to aggressively solicit wholesalers, in varying industries, as a way of approaching their supply and customer networks.

Run small business insurance ads. Place a small display ad in your local weekly shopping newspaper, promoting your agency (or yourself) as a specialist in protecting the small business owner. Sign a three-month contract. The primary purpose of your ad isn’t to generate inquiries; it’s to serve as a conversational lead-in to approach fellow advertisers. After running the ad for a few weeks, contact the business owners who advertise in the same publication. Start your casual chat with the question, “How well is your ad doing in the shopping news?” This gives you something in common to talk about, before discussing their insurance program. Chances are good that the prospect already knows your agency’s name, since he’s probably seen your ad while thumbing through the paper to check on his own ad and those of his competitors. Extend the ad contract if you still have leads to contact after your initial three months or if the paper has a steady flow of fresh advertisers. If there is more than one shopping newspaper in your marketing territory, try this technique on them all. You can even test it on Internet news and advertising Web sites where small local businesses place banner ads.

Conclusion. It’s easy to become frustrated when you’re unsuccessful in obtaining new referrals from your traditional lead sources. However, each resource only has so much to give. And when multiple agents are approaching your connections with the same request as you, it’s time to look elsewhere to supplement or replace these depleted contacts. By opening your mind and your files, you can discover new opportunities for lead sharing. Just remember that the leads you ask for should always be returned in kind. Forget rewarding them with a free lunch or gift. Your sources are in sales too. Besides, this way you get to keep that thank you bottle of booze!

Alan Shulman, CPCU, is the publisher of Agency Ideas, a subscription-only sales and marketing newsletter. He is also the author of the 1001 Agency Ideas book series and other popular P/C sales resources. He may be reached at (800) 724-1435 or by e-mail at shulman@agencyideas.com. His Web site is www.agencyideas.com.

Topics Agencies Numbers