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I opened an agency appx 6 months ago. Would be interested in getting feedback from others about their first year experiences. I'm not even sure if I'm on track, behind or ahead of the game. Do have some direct appointments with well known carriers, however, some months show little new business activity.
What is an "average" month during the first year of business? I am in a rural, working class area. Primarily in personal lines. Thanks

Hello,
We are also a start up property/casualty agency in a metropolian area outside San Francisco. However, we have had experience in employee benefits. Questions:
1. Do you have a business plan for your business?
2. Since you are interested in personal lines, are you affiliated with any larger direct writer, such as Farmer's, State Farm or Allstate?
3. Do you have affiliations with any MGA or wholesaler?

There is an excellent (but rather expensive) training organization that you can check out <a href='http://www.scic.com/' target='_blank'>http://www.scic.com/</a>

SFCA

You should work at having at least 10 new business appointments per week. I've found that the best way to get appointments is to x-date and then call 30-45 days before expiration to try and get an appointment.

Also not a bad idea to send a postcard thanking them for the x-date and promising to call back.

I also discovered that the best x-dates are the ones you (or your staff) get by making the calls. You can buy lists but their value is lower due to inaccurate data. Also, once you call and get a valid x-date (not really all that hard) you've already started a relationship. You've got a better chance of getting an appointment if you can introduce yourself on the phone as the agency that they gave their x-date to a few months ago.

After 6 months in the trenches you should have sold maybe 20 or 30 households & be able to get referrals. Business will pick up as you get more referrals (you have to ask!) and current clients purchase more.

Good luck and good selling!

Those are all good answers. I run a small rural agency. Some things I am sure you are doing but thought I would add:

1) Keep track of the times you get told yes and no. For every "No" you get closer to a yes.

2) WORK! You are not in a 9 - 5 job. I have been in the insurance industry for 11 years. I come in at 6 am and leave around 9 pm. HOWEVER, on the weekends I am available to my family. This doesn't mean I miss my kids Christmas Program, it means I GET TO BECAUSE I HAVE ALREADY DONE MY WORK! :blink:

3) DON'T I repeat myself, DON'T live beyond your means. Don't think to yourself, well, I will spend a little extra on the Credit Card on this client because it could mean a big sale. INSTEAD, tell the client, sorry I am booked up for lunch (it may be that you are booked up with the pigeons in the park but he or she won't know that) but you would be available at either 1:45 or 3:15.

4) You asked for a gauge. The only gauge I can give you is, add up all of your expenses. Divide by 30 and that is the minimum you must earn so you don't starve. In my office the NUMBER ONE thing agents do is get themselves in a hole that they can't get out of unless they either A take another job, or B quit.

Insurance Agent

Hello,
Do you have markets for non-preferred homeowners & auto? In CA, there are too many "less than perfect" drivers and "less than perfect "homeowners (too many claims). In CA, State Farm, Allstate & Farmers are not big fans of this type of business. This may be a referral source for you, if your state is "picky" about preferred risk as is CA. I would call these agencies and get feedback from them for this possible stream of revenue. Can you just get out in your neighborhood and start introducing yourself as "the best agency in town"? X dates may be the best time to requote, but doesn't need to be for personal lines. I think many people shop their HO & auto frequently on the web. AFter evaluating your markets for substandard coverage, what about leaving a "take one" brochure stand with info about your great agency in automotive or auto body repair shops. In CA, it is legal to pay a finder's fee for referrals. I know of offices that pay thousands of dollars a month to realtors, other preferred agencies not writing perfect policy owners, mortgage brokers, etc., used car dealers, for referring. That's about it for me. Best of luck to you.

Pick a "niche" market the major carriers do not write and become and expert on that market. I wrote personal lines for 12 years and tired of rolling books due to carrier changes and being a small agency. My advice, get a good preferred market, get progressive & then pick a commercial niche and hit it hard. You will be able to write more commercial because you are not going to compete w/Allstate, State Farm, etc., and you can still write personal lines when you need to. I don't see the use in sitting at 10 dinner tables/week to write 2 accounts which will move next time they get a mailer from Geico. I think your time is better spent going after professional business clients who are used to writing large checks and appreciate your hard work. This is just one agents 16 year experience.