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

[thomasm]

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!

Personal lines home and auto, but you'll run into commerical, like the self employed trades and other home based businesses.

15 hours a week of canvassing is all it really takes to generate an average of 30 leads.

You can't do that on the LH side without canvassing/cold calling 80 hrs week. I know. That's what it took to build my LH book without buying leads.

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30-60 leads per week?

Yes every week. Depends on the area though. You have to know where to knock.

Cookie cutter suburban homes in subdivisions is where I do best.

 

[SueNami]

Personal lines home and auto, but you'll run into commerical, like the self employed trades and other home based businesses.

15 hours a week of canvassing is all it really takes to generate an average of 30 leads.

You can't do that on the LH side without canvassing/cold calling 80 hrs week. I know. That's what it took to build my LH book without buying leads.

----------


Yes every week. Depends on the area though. You have to know where to knock.

Cookie cutter suburban homes in subdivisions is where I do best.

Wow, this is amazing to me. I didn't realize this was even done anymore.

If you're willing to share more about what you say/do- how the whole thing goes (do you quote them there? just intro?) I'd love to hear more about it!

Thanks for bringing this up...

 

[djs]

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!

I understand your feelings completely. What you aren't seeing is the other side of the coin and the way an existing agent looks at it.

From an agency perspective:
- You want to come in, make use of my resources, appointments, raters, contacts (underwriters, etc). Good, I welcome that.
- You want to grow a strong book of business with your own marketing. Great, I welcome that.
- You want me to pay you for your effort. You deserve this, no problem.
- You want to be able to walk out with all of your effort that I paid you to do with no repercussions to yourself. I lose the business I paid you to produce.

On top of this, as an agency, I opened the doors for you to compete against me. Honestly, most agents don't care so much about this, but it is a fact.

So now, I've paid you the first years commission on a policy, plus possibly an hourly wage, and now you want to take that policy without having to buy it back. Simply not fair to the agency.

Remember, they should be paying you to produce, so the fact you did your job that you are being compensated to do doesn't suddenly make them 'your clients'. Family and friends are a somewhat different matter, but the agency shouldn't be out money for these policies either.

My strong recommendation is to just have a heart to heart with the agent when you start, let them know your desire is to open your own agency someday. Work out a deal upfront, realize they are not going to pay you to start your own agency, but they can be friendly to the idea. If they are not, then go elsewhere.

My experience is most agents want producers that want to become agents. They tend to be much better producers.

Dan

 

[thomasm]

Wow, this is amazing to me. I didn't realize this was even done anymore.

If you're willing to share more about what you say/do- how the whole thing goes (do you quote them there? just intro?) I'd love to hear more about it!

Thanks for bringing this up...

If you think about it, it makes since for personal lines P&C than any other line.

Life insurance is kind like direct mail, it may take 100 people to find 1 person interested in a life insurance quote, not to mention all the doors you have to knock on to be able to talk to 100 people.

But with P&C, they already being conditioned to shop around, because every 2nd or 3rd commercial on TV is about insurance.

So all you have to do is stop by, let them know you may be able to save them $300-$500 a year for the same if not better coverage by shopping around.

But you don't want to hold them up right there on the doorstep, so you tell them it takes just 30 seconds to grab some basic info and you'll get back with then in a day or two with an accurate quote.

Then I gather everything an agent needs to run an accurate quote.

Believe it or not, the hardest information to gather is how much they are actually paying. One spouse usually knows, the other one is clueless. And I usually am talking to the latter. haha!

 

[SueNami]

Then I gather everything an agent needs to run an accurate quote.

It's that simple! lol I guess I'm just not good knocking on doors- but this is a great idea. I'm going to think about this a bit. We have lots of suburban areas with wives at home with the kids.

Thank you!

 

[Tim Resnick]

I understand your feelings completely. What you aren't seeing is the other side of the coin and the way an existing agent looks at it.

From an agency perspective:
- You want to come in, make use of my resources, appointments, raters, contacts (underwriters, etc). Good, I welcome that.
- You want to grow a strong book of business with your own marketing. Great, I welcome that.
- You want me to pay you for your effort. You deserve this, no problem.
- You want to be able to walk out with all of your effort that I paid you to do with no repercussions to yourself. I lose the business I paid you to produce.

On top of this, as an agency, I opened the doors for you to compete against me. Honestly, most agents don't care so much about this, but it is a fact.

So now, I've paid you the first years commission on a policy, plus possibly an hourly wage, and now you want to take that policy without having to buy it back. Simply not fair to the agency.

Remember, they should be paying you to produce, so the fact you did your job that you are being compensated to do doesn't suddenly make them 'your clients'. Family and friends are a somewhat different matter, but the agency shouldn't be out money for these policies either.

My strong recommendation is to just have a heart to heart with the agent when you start, let them know your desire is to open your own agency someday. Work out a deal upfront, realize they are not going to pay you to start your own agency, but they can be friendly to the idea. If they are not, then go elsewhere.

My experience is most agents want producers that want to become agents. They tend to be much better producers.

Dan

Dear Dan,

Thank you for sharing your experience and knowledge.

I'm a very respectful man, so i don't want you or anyone else to take this the wrong way. Please forgive me if i offend you,...not trying to. IN the following paragraph, when i reference THEY or THEM i mean "an agency."

With that said, maybe i wasn't being clear. "I don't want or need a salary. I don't want anyone to pay me to learn at their expense. I can "completely" understand if that is the case, "why THEY would want to pay me" because that would mean that I Owe THEM something More than just your fair split of any new business that i would bring in. I got that and certainly would make sense on why THEY would expect it. Not sure where that leaves me?

Keep in mind i don't necessarily, want to open my own shop BUT, the idea of me working my tail off just so that someone could possibly fire me and take my book that i worked to build, just sticks in my side (a little).

Not sure what you mean by "most agents want producers that want to become agents. They tend to be much better producers." ???

Again, thanks very much for sharing your knowledge and experience.

Much Respect
~Tim

__________________________

If you think about it, it makes since for personal lines P&C than any other line.

Life insurance is kind like direct mail, it may take 100 people to find 1 person interested in a life insurance quote, not to mention all the doors you have to knock on to be able to talk to 100 people.

But with P&C, they already being conditioned to shop around, because every 2nd or 3rd commercial on TV is about insurance.

So all you have to do is stop by, let them know you may be able to save them $300-$500 a year for the same if not better coverage by shopping around.

But you don't want to hold them up right there on the doorstep, so you tell them it takes just 30 seconds to grab some basic info and you'll get back with then in a day or two with an accurate quote.

Then I gather everything an agent needs to run an accurate quote.

Believe it or not, the hardest information to gather is how much they are actually paying. One spouse usually knows, the other one is clueless. And I usually am talking to the latter. haha!

_________________
Thank you Thomasm,

Did a little research on the forum, and no-disrespect, but Aren't you a LH agent who door knocks for LH leads? And you sell leads to PC guys/gals?
No offense my friend, but door knocking for PC leads wouldn't work in my area as MANY communities are gated. I think the best way to get leads are through contacts and networks. One can surely TRY this method, but i don't think i have the stamina to do it in our weather down here (its always hot in Florida---don't know where you are)???



.

 

[FL P&C Broker]

Let's not forget that every producer/agent is a liability to the agency. The principal has to get paid for the risk just like any other business.

 

[indienoise]

Dear Dan,

Thank you for sharing your experience and knowledge.

I'm a very respectful man, so i don't want you or anyone else to take this the wrong way. Please forgive me if i offend you,...not trying to. IN the following paragraph, when i reference THEY or THEM i mean "an agency."

With that said, maybe i wasn't being clear. "I don't want or need a salary. I don't want anyone to pay me to learn at their expense. I can "completely" understand if that is the case, "why THEY would want to pay me" because that would mean that I Owe THEM something More than just your fair split of any new business that i would bring in. I got that and certainly would make sense on why THEY would expect it. Not sure where that leaves me?

Keep in mind i don't necessarily, want to open my own shop BUT, the idea of me working my tail off just so that someone could possibly fire me and take my book that i worked to build, just sticks in my side (a little).

Not sure what you mean by "most agents want producers that want to become agents. They tend to be much better producers." ???

Again, thanks very much for sharing your knowledge and experience.

Much Respect
~Tim

It's simply part of paying your dues. I had to do it, too - build a modest book, then leave it behind and wait a year for my non-solicit to expire. I felt that the agent I previously produced for at least deserved that bit of extra revenue for giving me a chance when I was new to the business.

If I didn't have an established agent to take me on, I would've never produced that business in the first place, at best I could've sold leads and never made any residuals at all.

In addition to all those things he mentioned, if I let a producer just start BOR'ing all of his or her book, now I'm paying a CSR to handle the workload with a book being rolled away from my agency, and suddenly I'm going to have to start having more heart-to-heart discussions with carrier reps who want to know what's going on. And if the producer has a big enough book, possibly take a hit on contingency or commission rates.

So yes, there is a cost to the agency if a producer leaves the agency. I feel it's only fair to have some kind of buyout arrangement. I would've gladly paid it when I left the agency I was with previously, if it wasn't a captive and therefore he was not permitted to sell the book back to me.

 

[FLM2]

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 week it was advice about working as a captive Medicare agent, this week it's P&C, what is it next week, Final Expense?

Are you actually licensed for anything?

 

[MidcoastMaine]

Don't sign a non compete and you'll be all set.