New to Commercial P&C in Texas

[tarobhap]

Can anyone provide guidance on starting a Scratch agency on commercial P&C only.

I have my license, LLC and email, e&o coverage (an expensive broad coverage), efax and i am home office based.

My experience on being an agent is less then 7 months. But I am entrepreneurial and have above average knowledge in insurance. I also have a large client base I can reach whom are property owners.

I've been working on developing MGA appointments but none signed just yet. Close to getting a few.

Any input is welcomed. Everyday is a learning experience for me. I just want to make it work and get advice from the guys that have done it.

Thanks

 

[nyc2phi]

The good thing about commerical is that you don't nessecarily need direct appointements since these policies take longer from start to finish.

Commerical is very much relationship based, hitting the streets talking to business owners, joing a chamber of commerce or bni, and hitting the phones for ex-dates is the right place to start...

 

[Milkman1265]

You got everything you need, now market and get some clients.

You can try one or all or mix of....

Direct Mail (i think its not worth it anymore)
Social Media (not really effective yet, most business owners are older than the generation that uses these)
Cold Call (very good for x-dating but need to be dedicated, it gets super boring)
Cold Walk (same as above, its 95 degrees out so i'm hiding in the office)
Newspaper Ad in the local paper (You'll need someone answering the phone)
Online leads (easier than cold walking but expensve)
Network with super gatekeepers (these are fun, i go out to lunch and hang out at their office and just chit chat, with realtors, bankers, mortgage brokers, lawyers, etc... but can be expensive but over all i think this gets the best value... i get to go out and hang out all day, but make money when i get referrals)

 

[benk622]

Any reason why you are going commercial only? Why wouldn't you pursue personal lines as well, that can really be the backbone of a scratch agency. Are you only pursuing large commercial? I find for my self that small commercial lines are the least profitable pieces of business, especially if I have to go through an MGA.

Your main issue in pursuing good quality commercial prospects will be your lack of markets. MGA's will have limited markets for preferred business and it will be tough to compete against agencies with strong carrier line ups. Also closing good commercial accounts takes time- it might take years to really start closing a steady number. Can you go a while without making money?

My advice would be to not limit yourself to commercial only and try to gain some good direct appointments as soon as possible.

As far as marketing yourself, don't waste time spending a lot on advertising. Hit the pavement and the phones. Chambers of commerce and BNIs can be good too if you find a good one.