Not All Clients Make you Money!

[shawnmwalker]

IT IS very possible you can write a client, receive a commission for that client, and yet you can still come out of that seemingly winning situation with not a single $ in our pocket.

• Who are these clients?
• What do they act like?
• And if they negatively impact the agency, what should you do with them?

I suggested in some social media posts last week that this video might ruffle some feathers. It will most likely create some meaningful conversation. Take a gander, then let me know what you think.


https://youtu.be/nGudmxRnd1I

 

[shawnmwalker]

https://youtu.be/nGudmxRnd1I

 

[WinoBlues]

https://youtu.be/nGudmxRnd1I

100%

I tend to walk them before I write them.

"send them to your fiercest competitor" LOL

 

[fed up]

Write a PDP on a client who lives 50 miles away, needs to see you in house, makes you come back a second time to pick up the application, gets issued and calls every freaking week with another problem medication. Been there, done that, don't write PDP's (I was young and very dumb. Now old and dumb)

 

[AZDave]

$10/hour? more like $2/hour for some accounts! There absolutely are needy clients that suck up agency time and we lose money. The worst offenders: Avoid contractors that service multiple apartments and commercial buildings, or at least make sure that the contractor has a high enough premium to offset the slew of certificate demands. I wrote a small company for GL only, a $1500 / year premium. They provided move out touch up services to apartments. That $200 commission turned into 245 certificates in the first year, and not easy certificates!

I also have fire suppression service contractor, and we are up to 230 certificates for the year with three months till renewal. At least their premium is around $25,000. But I'm probably just breaking even on it.

I know some Indy's that have a minimum premium for commercial accounts. One can easily make a case that an Agency will lose money on any commercial account with a total premium below $2000/year.


Live and learn!
Good Selling!
Dave

 

[shawnmwalker]

AZ Dave, you prove my Point! Thank you!

 

[vic120]

Shawn, Have you Met LD ?

Update

I'm sorry that his initials goes by Lost Dollar on forum

 

[shawnmwalker]

Don't think so.

 

[IndieAndy]

Does anyone charge for certs?

 

[AZDave]

Does anyone charge for certs?

I seriously thought about it. One would have to set up and announce an 'Agency Policy' of sorts, and let that policy be known to all your insured's. In the end I decided it's just not worth the risk of losing/attracting and retaining customers. I'm not into giving anyone a reason to shop as the other Indy down the street that doesn't charge for certs. And in this day of social media and google reviews, slippery slope we work.

Now if it's brokerage business, nothing wrong with adding a set policy fee.