"Money back guarantee"? How does that work? Do you charge for quotes?
- 9,744
"Close rate" can be very misleading. What sort of "return on investment" are you enjoying?
We'll get while the gettin is good for now.
Money back guarantee is really nothing more than a glamorized rendition of the fact that our companies do no "short rate" cancels. The twist is that we have it done up in a "certificate type" look and worded it so it gives the impression we are looking for and hopefully the prospect is looking for. Just another way we try to overcome the "why should I trust you" objections.
ROI is tough to calculate accurately on P&C with the trailing commissions, but based on my current retention of 95%, and the fact that I only pay once for the lead and one bonus when it closes, it looks like we are currently giving up 60% of the first year commission on this new business. Second year ROI will be 100% of approx. 95% retained, not counting any spin offs or account rounding. On pace for positive gain of +45K commission growth second year, don't really give two schits about "year one" other than it's not losing money.
Money back guarantee is really nothing more than a glamorized rendition of the fact that our companies do no "short rate" cancels. The twist is that we have it done up in a "certificate type" look and worded it so it gives the impression we are looking for and hopefully the prospect is looking for. Just another way we try to overcome the "why should I trust you" objections.
ROI is tough to calculate accurately on P&C with the trailing commissions, but based on my current retention of 95%, and the fact that I only pay once for the lead and one bonus when it closes, it looks like we are currently giving up 60% of the first year commission on this new business. Second year ROI will be 100% of approx. 95% retained, not counting any spin offs or account rounding. On pace for positive gain of +45K commission growth second year, don't really give two schits about "year one" other than it's not losing money.
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When I was still actively selling P&C - I found that the best call lists were free and came from my local title agency. Have a title agent pull your district's housing records and you will be able to see what month people purchased or last refinanced their homes. Generally speaking - this will be the same month their homeowner's insurance will renew - which makes for an easier call.
IE - "Hello _____ my name is ______ and I'm your local Farmers Insurance Agent. My records show that your homeowner's policy was coming up for renewal and if it's alright with you, I'd like to offer you a policy review to see if you're still getting the most bang for your buck."
Use homeowners as the foot in the door and then tout the multi-line discount to close the auto, umbrella and mortgage protection (life) insurance.
Just my .02
- 9,744
Love this. Very nice - savvy marketing.
I'd be worried that at renewal, they would say that they didn't like the customer service, claims handling or whatever, and ask for their premiums back.
Eh, its your E&O. I don't know if all insureds are clear that "unused premiums" means the same thing to us as them.
My penny pinching mom would argue that since she didn't have an accident or make a claim that her premiums were "unused".
My penny pinching mom would argue that since she didn't have an accident or make a claim that her premiums were "unused".
Well.....no offense....but I hope your mom is not one of my clients. I wouldn't actually consider that a basis for a potential E & O claim either, but that's just my opinion.
I would have to also ask mom if someone's attorney presents us with a suit against her, even though she did nothing wrong, would she want us to pay for her attorney and legal expenses or would she mind doing it with the premium refund
I would have to also ask mom if someone's attorney presents us with a suit against her, even though she did nothing wrong, would she want us to pay for her attorney and legal expenses or would she mind doing it with the premium refund
- 9,744
Whether it's clear to them or not doesn't make any difference.
The only thing that matters are the relevant statutes for the state in question.
Some people will find the cloud in every silver lining...
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