alexmishchuk
Expert
Ok, so the OP did pm me. I want to respond publicly so as to benefit as many people as possible. I was in Oregon for a week dirtbiking and am doing some catchup.
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There is a lot here I want to address.
First off, the first few years of commercial p&c are tough. Probably the longest ramp up of any type of insurance, and the longest of any business I know. Plan on not being able to pay your bills for the first 7 years. In my first 36 months I made about $35,000 total. Not per year, but total. You should be looking about 10 years out on this, as with most businesses or investments.
Next, you are going to have a lot to learn about underwriting, and developing a niche, and business owner behavior, and yes, it's often going to come down to the bottom line. Developing a niche and focusing on it will solve many problems you have, and create opportunities you probably haven't thought of yet.
Incorrect. I have access and write my niches with markets I have that many other "independent" agents haven't even heard of. You may often find yourself in a competitive situation where you don't have access to the best market.
I haven't seen that, and I don't think there are many, if any, agents that will agree with that statement as a whole.
Nope. Not only do I not cold call anymore, but I try to avoid contractors. The premium is attractive, but they are high maintenance, needy, and are constantly going out of business. The work and turnover involved will take time and prevent you from writing business in the future, and often isn't worth it.
Unfortunately Don is right. I think about half of that 5% actually make it as a career. But don't worry about being stupid or smelling bad. I've been accused of both and I made it.
You should be able to make money on small accounts like a few thousand dollars after a few years. Again, this is a long term business. Those small accounts often grow over time, add locations, trucks, employees, start another business, etc. Almost every large account I have started as a relatively small account. Also, they can lead to more business, which I will get to. If you can't make money on a $3k account, there is something wrong with your commission structure.
Along with your negative attitude, this may be part of the problem. I was working on the side and eating pasta when I started this, along with borrowing money. As far as your attitude, it doesn't matter what you say or how you smile, you're dealing with business people. They are smart, and they'll smell it on you. I've been doing b2b for 20 years.
I do all the time. I just did.
So below is my technique for getting referrals. I copied and slightly altered the content from an email I sent someone, but you can tweak it and make it your own to fit the people you talk with. I apply only a few of the techniques, and get about 3 or 4 referrals per sale on average. You could easily get 10 referrals per sale. I got 13 referrals on a recent sale, then went back and got more.
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As far as referrals, it's taken years to refine and perfect, but it was a complete game changer. I was getting so much business so easily after years and years of pounding the pavement and cold calling, I actually felt guilty. All cold calling and marketing has stopped some time ago, and it's 100% referrals now. The barrier to entry is a little bit higher, but it will probably get you the most clients, with relatively little work once you get efficient with it. The clients you get from a system like this will generally be higher quality than the type of clients you get from any other cold calling, marketing, etc. and will be higher closing %.
Basically I have a two pronged approach.
First, referrals from current clients, by asking for them in a very specific and targeted way and focusing on a niche that is the most capable of providing referrals.
Second, once you've gotten the technique down, I would suggest you share your techniques with others in the area as a form of relationship building, and then you can expect to get referrals from them. They key of course is that you take really really really good care of their clients, no matter what.
I would suggest you watch the video below at least once, and read the example of techniques I use below that. It's not really a video, it's more of a podcast from youtube, so you can listen while you are driving, or whatever. Also, the Sandy Shussel referral education audios came very highly recommended to me, but I have only gotten a few hours into them, as I am getting a lot from my system already. It's something like $40 for the audio program, and I highly recommend it.
The concepts are fairly basic, the implementation is key, and will take months to implement and figure out, and years to perfect.
Here is an example of the sales process in regards to referrals. Normally I'm not this aggressive asking for referrals since I am already getting plenty, but this example displays all the techniques I use. I usually have an app on my cell phone recording the conversation, because once they start flowing on giving my referrals, I don't want to stop them to get spelling, clarification, etc.
So, I meet with an auto body shop. I make it clear I almost exclusively work by referral, and I'd be asking him later for referrals for any other businesses that may be also interested in speaking with me (referral opportunity #1). This gets the wheels turning and prepares him to give me referrals later. It also sounds really really good in a meeting. I mention that starting a business is a big risk and frankly kind of scary. Does he have a friend, relative, etc that owns a business that inspired him/mentored him (referral opportunity #2). Most of the shop owners I work with used to work for another shop before they started their own shop. Where did he come from, perhaps I know them (referral opportunity #3), When I was going over his business, I asked if he had any other body shops he worked with or knew as I work with a lot of other shops in the area (referral opportunity #4). Who does he send out to for windshield work (referral opportunity #5). While I was asking about his business, I also asked if he had repair shops he networked with to get business (referral opportunity #6). Who does he order his paints from (referral opportunity #7)? Who does he order his parts from (referral opportunity #8)? When I come back and propose, assuming he buys, I'll remind him that I'd like to know if he has anyone else that owns a business that he can think of that may want to talk to me, that's another referral opportunity. Then, I'll pull out a sheet I compiled ahead of time with the 20 nearest large repair and body shops nearby, tell him I am thinking of introducing myself to them, and ask if he knows any of them. If he does, I'll ask for the best contact, and if it's ok to mention him and that he bought from me and I saved him money and gave him a better policy. Any name that came up from the prior referrals opportunities above, I'll ask for permission to contact them and give a brief overview of how I helped him. Next, I'll ask for permission to introduce myself to the neighbor to the left, to the right, behind and in front on my way out, while of course asking for the proper contact.
Finally, I'll call back 3 or 6 months from now to check on him. I'll ask if he mentioned to anyone that he moved his insurance, and what he told them. Assuming it was a positive conversation, I'll ask for permission to introduce myself to those people.
This is the greatest help for obtaining referrals I have come across on the forums in the little time I have spent on this forum.
I too am making the plunge into Commercial P&C. Started reading Jeb Blounts Fanatical Prospecting, and I actually ordered the "box set" of books to read during my first year of selling.
I am lurking the forums daily, watching youtube videos, talking to successful brokers as well as "low' earning guys, plus compiling a list of prospects/suspects and adding to it whenever I meet someone with influence at the company they work for.
