Avoiding the Vampires-->How to Own Your BOB?

Sep 12, 2016

  1. Tim Resnick
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    Tim Resnick Super Genius

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    Hi friends,

    Been doing lots of reading on the forum and Wanted to ask a question.

    As a newby, i feel confident that i can bring much of my biz through associates and my personal network. But the conundrum is "how can keep and own your book-of-biz" from the start?

    I know if you go to work with a Franchise, (or many agencies) they will want a contract stating "they own what-ever business I bring in." I don't like that setup as the implications is "i can't or wont' be able to contact any of my clients should i want to leave for greener pastures."

    I CAN understand if they give you the a lead. That's fair, but to if i'm bringing in my own client, i think i should be able to contact MY CLIENT for future biz.

    • Am i wrong?
    • What am i missing?
    • How can i get a deal with a local agency that will allow me to own my contacts and personal biz?
    • Is this even possible?
    • What kinda split can i expect under the above terms?

    Any help you can offer is greatly appreciated. Thanks!

    ~Tim
     
    Last edited: Sep 12, 2016
  2. Derrick
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    This is coming from an agent who has not yet started their own agency but has done a TON of research.

    Just join a cluster and use wholesalers for fringe markets. You own your BOB, have access to non-standard/standard, and usually a preferred market or 3.

    Also join your state's IIABA, attend conferences and talk to carriers and vendors. Grab a card, shoot them an e-mail about how much you enjoyed talking to them, and if they are ever looking to give appointments in your area to give you a call. Follow up every 6 months. Also invite them on LinkedIn. Have updated website with good SEO. Have a Facebook page that updated often with quality content. Try to get customers to review your agency on Google, etc.

    Establish better-than-industry ratios. Have more people on EFT (less lapses, proven). Have better loss-ratios by properly field underwriting, as opposed to just pushing as much business as possible through. The list goes on. Look at all the measurable ratios in insurance, and find ways to make them look better, even if it's just on paper. As well as, of course, showing your a growing agency/BOB.

    Have your technology not from the 1990s. Like, for instance, while having a physical fax machine is a must, 99% of your faxes can be sent through eFax.
     
    Derrick, Sep 12, 2016
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  3. marindependent
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    marindependent Guru

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    Love the title to this post.
     
  4. thomasm
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    thomasm Guru

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    One thing is having your marketing system down to a science first, which I've done.

    I don't know anything about how to quote and bind policies yet, but I generate between 30-60 fresh rounded leads every week consistently.

    You eventually will run out of a warm market, so figure out your lead gen system first, then figure out the rest.

    Agents do things backwards. They spend all this time and money getting licensed, and learning the product, then realize they have no one to see!

    Get your marketing right first!
     
    thomasm, Sep 12, 2016
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  5. 1reason
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    Ok, I'll bite. How are you able to generate your leads?
    (I came on here today to find another lead provider as my current one is causing me hair loss, and my website isn't generating many)
     
    1reason, Sep 12, 2016
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  6. djs
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    djs Super Moderator Moderator

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    With most agents, friends and family constitute a very minor part of their overall book of business. Put their names (or relationships) in the contract and say you are allowed to market to them immediately if you depart.

    The existing agent will own the policy. You'll have to rewrite the F&F to a new policy to move the business.

    In most cases, you simply buy the policies from the agent.

    Dan
     
    djs, Sep 12, 2016
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  7. Tim Resnick
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    Tim Resnick Super Genius

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    Thanks Dan,

    Forgive me if i sound a little ungracious, But that seems like it could get expensive. Pay a company off for business that i've produced? (Family and friends would be a given), but the fine print says "everyone" you bring in.

    Is this the way it works? Really?

    I guess i gotta look for a small independent company that will be flexible with the concept of "who AND what is mine" and "who and what" is theirs? And wants to make a fair share of free money coming in. That's the way i see (sorry if i sound a little cocky----Someone straighten me out if I am wrong???)


    I think these are reasonable questions and concerns. What "SKIN" does a company have in the game? Seems like they got fixed expenses, EO insurance and once they've built up a decent book, can sit back and write more biz through agents who go out and bust they're hump to bring in more biz.

    I'm not looking to steal or rip anybody off...BUT, I DON'T think its fair that i should invest my time, money and efforts "making rain", giving up a fair share of the gross, not even ask for a desk and have to "fork over" business that "i produced"--- "when and if i should decide to leave." ----->hell, these companies don't give any benefits or anything...i'm 1099!

    Like the title of my thread suggests, these companies are blood suckers--"VAMPIRES."

    I'll be damned if i'm gonna let myself get used like a Tampax. Hell No....! There's got to be some reasonable companies that want to make $ without trying to "enslave" a producer?

    .
     
    Last edited: Sep 12, 2016
  8. thomasm
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    I door knock............................
     
    thomasm, Sep 13, 2016
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  9. SueNami
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    Thomasm- can I ask what type of lead you are generating by door knocking? Commercial? Personal p&c? L/H?

    Super curious.. I've targeted small businesses like this and have gotten their personal this way but never used it any other way...

    Thanks!
     
    SueNami, Sep 13, 2016
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  10. marindependent
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    marindependent Guru

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    30-60 leads per week?