Hi Everyone, I am a commercial insurance agent looking to increase my business. Does anyone have any advice or insight on how to locate information on new businesses that have not opened and may potentially be looking for insurance? Any input would be very helpful and appreciated.
New Businesses In Need of Insurance
- Thread starter Kk96311
- Start date
- 5,463
I am commercial only, and have done very well. I suggest you canvas and cold call to get your first few sales, and use this system to get referrals. I get an average of 3 referrals per sale, which turns into 2 sales. Those two sales net 6 referrals, which turns into 4 sales, which nets 12 referrals, and so on. Bottom line, I have a folder full of referrals I don't even have time to get to.
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. I would suggest you try dedicating some time into this. 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 than the type of clients you get from any other cold calling, marketing, etc.
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. Also, I suggest you look into the Sandy Schussel referral program. It's only about $35, and worth a small fortune if you actually implement 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.
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). 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.
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. I would suggest you try dedicating some time into this. 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 than the type of clients you get from any other cold calling, marketing, etc.
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. Also, I suggest you look into the Sandy Schussel referral program. It's only about $35, and worth a small fortune if you actually implement 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.
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). 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.
- 692
I would NOT target new businesses like that. A lot of the times its a low premium and the owners can be inexperienced. Harder to write too. If you are looking for leads pick up the phone and cold call.
- 11,471
- 2,357
I have found that a LOT of new businesses fail. Therefore targeting them can lead to more cancellations than established businesses.
In addition new startups often have to pay a lot of premium relative to their initial revenues.
If you still want to target this - I would look for public information from your State or Newspapers about DBAs and Business Formations. Many states require DBAs to make public announcements.
Best of Luck
In addition new startups often have to pay a lot of premium relative to their initial revenues.
If you still want to target this - I would look for public information from your State or Newspapers about DBAs and Business Formations. Many states require DBAs to make public announcements.
Best of Luck
- 5,463
From my experience, so far, I haven't had too much problem with that, and I write a lot of new businesses. Of course yes with contractors and restaurants, but I stay away from them for that reason. High risk, high turnover. The others have gone pretty well. Even the new in business nail salon and new in business children's gym are still in business, somehow. But, in addition to some good planning with my book, I've had beyond ridiculously, almost impossible, good luck with my clients staying in business. As a matter of fact, I've had less than 1% of my clients go out of business since the start of the pandemic, so maybe I'm not a good example.
- 2,357
I was not even referring to COVID, just new business start ups in general: "Only 25% of new businesses make it to 15 years or more." Source.
Sounds like you have been lucky and wise, good for you. Perhaps its the industries, perhaps its the area you sell. Or perhaps its just you!
My point is that starting an agency targeting new startups can be challenging for numerous reasons, the least of which is that many of these new businesses will not last beyond 10 or 15 years.
- 692
You could totally make it work but why struggle with inexperienced a lot of the times cash poor clients? The world is at your fingertips, pick something that is booming. Like in stocks follow the volume.
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