Telemarketing?

[Fletch]

Its been my experience that teaming up with a potential source for new business can really drive solid growth. In your case, have you tried talking to the realtors SELLING the homes? Obviously some will already have an agent in their pocket, but others might be willing to share their leads, just like they do with the mortgage brokers who handle other referral business.

[mhutch69]

Scott, the consulting fee guy, why does properly quoting on-site look so bad to you? I wish you explained how YOU would contact these homeowners other than to say" provide value by finding products that provide value" blah blah blah.

What the hell do you think he is doing by providing homeowners insurance to new homeowners? Your fee scam may work in your small arena, but stay away from my neck of the woods as I would stomp your little consulting agency with real products. I do not need to charge $3,500.00 to provide a well rounded insurance plan for any individual. If the net worth of the assets generated sufficient premium to pay commissions of such an amount, then I earned it. Good luck on changing an industry with several hundred years of commissions.

[independent guy]

Where I'm at, there is an event called "The Home Show" where tons of vendors come in to the biggest indoor sports arena and set up shop for consumers to see. A few years back an Allstate agent and a State Farm agent had set up booths. There's also a much smaller show at a local mall exclusively for those in the market to buy a home. I haven't done anything like that yet, but I'd imaging you could get a pretty good return from it.

When I taught martial arts in college we'd set up a booth at the county fair for people to pick up brochures and talk, I'd sign them up for their (free) introductory class right there and get their contact info. Out of 50 prospects, my master instructor would close up to 13 annual memberships worth $1,200 each. It would cover his advertising budget for an entire year. I realize insurance and martial arts are totally different things, but if you have something to draw people to your booth, you'll get to talk to them. Many agents might think they're above doing this kind of thing, but I think its perfect for a new agent or an established agent looking to expand his or her book of business. If you can't do it yourself, train a CSR to do the job and pay the CSR a bonus based on the number of prospects you're able to close a policy sale on.

[scott]

Mhutch69 -

The original question here included a new agency in an area of tremendous housing growth. Someone suggested telemarketing. Someone suggested a local office with a sandwich board.

I responded that telemarketing / cold calling / telespam is intrusive and disliked by most recipients. Further, I proposed that your marketing techniques reflect on you. It helps set the perception the public has of you.

My advice is to partner with reputable and respected real estate agents, contractors, mortgage brokers, bankers, and builders in the area. Provide value to these referral sources "" find a way to make their life easier / better. For example, promise real estate agents that they will never have to worry about binders at closing when you are the agent. Promise amazing service "" 90 minute return phone calls "" one hour turn around on quote requests "" buy flowers for the model home. The key is to become a valuable person to those who can refer business to you. Be creative while being 100% professional in your appearance, deportment, and service.

I'd be rabid about service with my clients. I'd send thank you cards for referrals. I'd send a card to every client once a year offering a free review of coverage. I'd call clients at least once a year asking if the agency was earning an A for service. I'd build an email list of clients and send a monthly email newsletter with insurance hints, tips, and facts. I'd build a separate email list of referral sources who I work with regularly.

I'd be sure to contact referral sources at least 4 times a year with something of value that has nothing to do with insurance "" an interesting article on management, leadership, marketing. Perhaps an article on fly fishing to a mortgage broker who enjoys the sport.

I'd write articles for local newspapers on insurance issues. I'd offer to speak on an insurance topic to the local civic association, Rotary Club, or housing association "" not a sales talk, but an insurance presentation that is valuable to the audience.

I think the key to marketing is to be remarkable & valuable "" worthy of remark and a person of value to those with whom you do business.

[bindscott]

I agree with Scott. Telemarketing is simply evil. Insurance is an evil necessity and you will only delete the word 'necessity' out. Just as you would pick an attorney, CPA, or even a gardener, the minute you show your desperateness, people will shy away. No one wants to deal with a desperado. When was the last time you actually bought or took advice from a telemarketer?

Just as Scott mentioned, try networking with other professionals that might be willing to work with you. Again, don't show them that you're desperate. Get involved and be prompt but NEVER make false promises about sameday return calls, 5 minute turn around or same day binders if you are not in a solid position to deliver that promise.

Newspaper, direct mailer (nice color flyers) etc... is a much better way to target them directly. What ever you do please don't just cold call. You will do your neighbors and most importantly yourself a huge favor by not cold calling. (Unless you like being hung up or yelled at by people)

Good luck my friend!

[volstrike3]

For personal lines, I do not think telemarketing is successful.


In selling commercial lines, telemarketing is vital. If you cannot cold call, you will not make a living in commercial lines.

[bindscott]

volstrike3

WILL NOT make a living?

I guess it all depends on whatever works best for you. My personal opinion is that cold calling does might work if you are simply X-dating. Just don't call me....!

[volstrike3]

Starting from scratch in this business, there is no way to make it through your first two years if you are not cold calling. You cannot network enough to bind enough business to keep your bills paid. In most large agencies, you need to write $100k a year in new business revenue to keep your job. It cannot be done without cold calling.

[bindscott]

volstrike3 I appreciate your input. What's your return or closing ratio on 100 cold calls you make?

I guess you can have higher closing ratio if you compare it with direct mailing. However, direct mailing is a bit more streamlined and there's no limit as to how many letters you can send in one day.

When I owned my agency in the 90's, I targeted niche prospects (ie. Pest Control Operators) since I had a captive program in house. I sent 200 letters every day for 1 year and generated over 3 MIL in premium volume.

In my opinion, cold calling costs $$, time and embarrassment.

[volstrike3]

100 calls equals 20 appointments and 6-8 sales. I work on medium to large contstruction and manufacturing accounts. Last quarter 100 phone calls equaled $86k in revenue. I have gone from 0 to a book of $390k in revenue in 2.5 years.

Cold calling is not ideal but it is better than wishing the phone will ring. I have not received any response from direct mail. How much time and money does it take to send out 200 letters a day? I would much rather make 15-20 phone calls.

I think you last statement said it best, you want to avoid "embarrassment." There is nothing embarrassing about the service I provide or the products I offer. I have yet to meet a great producer that was easily embarrassed or a people pleaser.

[Wash Broker]

but then I guess that is what makes reading the boards fun sometimes. Hey, I use to telemarket when I opened an agency, you know what? I dont care if you say no because that just gets me 1 step closer to yes. Believe it! Most of my best customers were telemarketed, because they werent really shopping, but obviously werent too impressed with their current agent either and were just ready for a change.

If you want to write new homeowners, go where the business is fool. Loan staff processors, wine em and dine em and they will be calling you off the hook for binders all day long.

[Brandy]

Okay I've read these posts as they came in and I have to say I never telemarketed when I wrote P&C....I never had time to I was busy writing policies and running quotes and returning phone calls and wishing I was back on the Life side of the business. Since developing chest pains I quite last year. Ran for my life literally and came back to the Life side of the biz. Love it but have to admitt you have to have clients to write, run quotes and return phone calls. So, I went back to telemarketing like we did in the olden days, what a nitemare it is now with caller id and answering machines. Today, I started going back to the olden olden days of insurance, door to door and guess what in 95 degree weather they feel sorry for you and let you in.....hahahahahahahaha

[Wolfman97]

Pick up a book called "Guerilla Marketing". It will give you all kinds of good ideas for how to reach people at low cost.

[Brandy]

Thanks Wolfman97, will do.

[InsAgentSF]

On a subject. I went to borders yesterday and picked up an interesting book "No More Cold Calling(TM) : The Breakthrough System That Will Leave Your Competition in the Dust " They teach how to build a business on referrals only