Insurance Journal Forums

I am in the process of opening a new agency. The area I'm starting in is one of the fastest growing areas in the nation. My question is, if there are so many new residents to the area, is it necessary to telemarket since most residents will have recently obtained their current insurance. Any help would be appreciated.

I wouldn't hire a telemarketer unless you have a good niche and you know you can close the business hands down. Also, i wouldn't get a telemarketer for a product with a premium less then 20K

New homes will be my Niche. The population in the area I will be opening my office has grown 250% since 2000, and shows no sign of slowing down soon. New subdivisions are poping up at an amazing rate. Any suggestions on how I should tackle this market?

I think direct marketing will be cheaper... What area is that

Telemarketing is now a risky proposition on the personal lines side, as violation of the "do not call" list carries some hefty fines. The only people not signed up for the list are those too unaware or incompetent to do it. Not my preferred customer.

A friend of mine got into an area, new homes. He called the developers and made arrangements for referrals. He is making a killing now.

Here's what I'd do...I get myself a laptop enabled however to do wireless. I'd do my best to find space at one or more of the developments by either renting space in the sales office or renting a parking space. I'd get a sandwich board sign and just quote all weekend long during the open house sales events. I'd either print or email the quotes, rounding out the account with home/auto discounts.

I'd also be touching base in a low key way with local title company/escrow offices.

And I'd find my location on a gateway street location on the way to the new developments and get the largest sign I could promoting home insurance.

Once the development is finished and the move in's complete, I'd do direct mail 9 months after closings to try and win over those who're inclined to shop their policies.

Making this work in the beginning is a seven day a week job, so be prepared to put in the time, but if that's your foot in the door to this kind of career, welcome to the club.

[quote="InsAgentSF"]I think direct marketing will be cheaper... What area is that[/quote]
Northwest Arkansas, Home to Wal-Mart.

I agree with d's insurance store's advice above. The marketing should always be
1) Targeted
2) Measurable

Yeah, d's got it goin' on...

If these are open houses, you may also want to think about putting some of your agency brochures or at least biz cards and contact info IN each house so the buyers could pick up your info as they go through the house. Some ppl are picky about insurance and want to sit down w/someone. Give them the opportunity to do so and you should do well, my friend.

I would also make notes of which realtor's sign is in the yard and contact them as well.

Thanks for the input guys. I'm excited and looking forward to the opportunity.

What clientele are you trying to build? What image does your marketing practices portray? You are what you are perceived to be.

Would you buy investments from someone who has a roadside office / sandwich board? How often do you buy from a telemarketer?

The marketing plan outlined by prior contributors may work for a particular market. For others it would kill your chances - you would be perceived as a huckster.

Determine who your clients are. What do they need? What is valuable to them? What value can you provide? Build products and services that provide the value your clients need. Pursue an approach that is a solution to a client's problem.

Think anyone is listening to you ? I hope so because you hit the nail right on the head. Regards.

When I first started in this business I telemarketed like a mad man. I wrote a lot of business too. You need to do what ever it takes. I would pass out flyers early in the morning, go see real estate people during the day, and telemarket at night. The telemarketing still works you just have a few more rules to follow. Insurance sales is a tuff business and is not for everyone but, if you got the skills that it takes and you hang around long enough you will make good money. Don't listen to guys like Scott. They know all about the product they are selling but can't sell it.

Good Luck!

Consider your recent purchases of items or services that were over $500. Did any come from tele-spam?

My April newsletter included more on this theme - http://www.icmentor.com/articles/icmentor-april06.html