Started Scratch Independent Agency in NY almost 1 month.

[insuranceforever1]

I'm facing the realities of a difficult auto insurance market that poses challenges for almost all carriers. As a new agency, I find myself in the position of not having any customers yet. Additionally, my attempts to reach out to local business owners have not been yielding quick responses. In light of these circumstances, I'm seeking guidance on what steps I should take to overcome these obstacles and establish a successful presence in the market.

 

[fed up]

Surely you have 1 customer, yourself, unless you don't believe in your product. Now go hang out where people are, the carwash, the bowling alley, the public golf course. A 4 hour round of golf is plenty of time to sell yourself.

 

[tikibarrister]

As a new agency, I find myself in the position of not having any customers yet

If you can't even sell your mom a policy, maybe this isn't the profession for you... Just kidding.

quick responses.

Not sure they ever will. Commercial P&C business is sticky, which is great if they're stuck to you but it's a lot of work to get them unstuck from someone else.

Looking back at your previous posts, I see you were an SF team member and now you've gone out on your own. I'm guessing as an independent since SF told you no on an agency.

The good news is that you would have spent tens if not hundreds of thousands of dollars on that SF agency and now you can take those precious dollars and redirect them into marketing and growing your own agency (right...?)

Are you solely focusing on commercial P&C or are you aiming to be a general insurance agency?

Some avenues you could explore:

Find a Niche: Market yourself to an under-served segment or a segment that needs to be educated. Tool rental trucks, cannabis shops, hot dog vendors, food carts, Section 8 landlords, escort services, who knows. Become an expert/authority and establish yourself as the go-to guy for that market because you understand those people's needs and can advise them of things they didn't think about. There was a guy on this forum who marketed (maybe still does) to strippers and did quite a bit of business because there were no other agents who approached that market.

Entertainment: The "free dinner at Applebee's" has been done to death but what about an evening of wine tasting? Trying cigars? A meet-and-greet with Smedley Fartbush who batted .285 for the Mets in 1985 and will be on-hand to tell ribald anecdotes and sign autographs?

Partner/Service: Perhaps you can find a business document shredding service that would sponsor/share cost for a free drop-off day - companies bring up to X banker's boxes for free destruction and you're right there to shake hands and introduce your fabulous agency. Or you rent a truck and tell businesses you'll be in their area this week to pick up and dispose of ewaste for free.

Education: Host a seminar. Become a fascinating YouTube channel. Write a book. Create a funny, eye-catching poster on the Five Ways to Prevent Diners From Catching Horrible Diseases by Washing Your Hands and distribute it to restaurants. Give out a free calendar where every month includes valuable tips plus pinups of industry beefcakes such as @goillini52, @marindependent, @shawnmwalker, and @DHK? (actually, scratch that last one, but you get the idea).

Network: Surely you know some people who own businesses if that's what you're going after. Approach them and ask why they chose the company they did, and if they could provide some referrals. That way you're not violating your SF non-compete if you're under one but are still getting some names to talk to.

Grind: If you mailed 1,000 flyers to businesses and got a 0% return, that's about what's expected. I filed for a DBA ("doing business as" name for a business) about 15 years ago and never did anything with it or renewed it, and yet to this day I still get flyers from insurance agencies asking if they can help me with my company's needs. If you call 1,000 businesses you might get someone to talk to. Have you tried walking in to 1,000 businesses and asking if you could talk to the owner? Your local Verizon store is going to tell you it's all handled by the home office but the proprietor of Al's Vintage Buggy Whip and Storm Door Consultancy is likely to be in the office every hour it's open.

I've never sold P&C a day in my life. If I can think of these ways to reach business owners while sitting at my kitchen table eating a delicious McMuffin, I'm sure an experienced agent such as yourself must be brimming with ideas.

 

[marindependent]

industry beefcakes

Wow - I am industry beefcake? Gosh what on earth then is @Markthebroker

First - One month is not very long, it is going to be a long long long road, Are you focused on Consumers or Businesses?

Second - Make sure your Google Local page is up and running, post on it every 2 weeks for a year. Get some reviews on there, fast. Add your services.

Third - I have found that there are three major problems with growing insurance agencies: Marketing, Market Access, and Closing. Right now I would assume you mostly having problems with one and two.

Also - remember businesses typically only look at their insurance at renewal time - so contacting them at just the right time is often the key to success.

Lastly - this is super terrific advice:

Find a Niche: Market yourself to an under-served segment or a segment that needs to be educated.

 

[Al3x Lee]

Give out a free calendar where every month includes valuable tips plus pinups of industry beefcakes such as @goillini52, @marindependent, @shawnmwalker, and @DHK? (actually, scratch that last one, but you get the idea).

Gosh what on earth then is @Markthebroker

I dunno, but Mark sent me a calendar in May that just has pictures of him in his cape at slightly different angles each month. I'm not sure what he meant by it, but it felt oddly threatening.

 

[AZDave]

I'm facing the realities of a difficult auto insurance market that poses challenges for almost all carriers. As a new agency, I find myself in the position of not having any customers yet. Additionally, my attempts to reach out to local business owners have not been yielding quick responses. In light of these circumstances, I'm seeking guidance on what steps I should take to overcome these obstacles and establish a successful presence in the market.

Starting a scratch agency, in this market, in New York, for auto and home insurance - are you nuts? This business is all about prospecting/referrals and keeping the pipeline full of quotes. To start out new with no one to quote and not kowing how to get them is backwords.

What companies do you have in your quiver, are they competetive, and do you have binding authority with them? Focus on these carriers appetites - what are they writing.

I suggest avoiding the single auto's/high risk market and always seek to package. Too much maintance in this business and you will lose money servicing the crap auto insurance market. Hopefully your financially prepared to starve until you get to at least $500,000 in premium and consistantly writing.

I use to believe that even a blind squirrel can find a nut. Just don't be this squirrel!

 

[Markthebroker]

I'm facing the realities of a difficult auto insurance market that poses challenges for almost all carriers. As a new agency, I find myself in the position of not having any customers yet.

Find a niche and dive into it.

Additionally, my attempts to reach out to local business owners have not been yielding quick responses.

Nothing happens quickly in commercial insurance. The fastest possible speed in the universe is the speed of light. The fastest possible speed in commercial insurance is the speed of smell.

Commercial insurance is a tough business to get going, and this is a really, really tough market. Generally getting started in commercial p&c you should be prepared to support yourself with other means for 5-10 years while you build your book.

 

[Markthebroker]

If you can't even sell your mom a policy, maybe this isn't the profession for you

 

[Markthebroker]

I dunno, but Mark sent me a calendar in May that just has pictures of him in his cape at slightly different angles each month. I'm not sure what he meant by it, but it felt oddly threatening.

Firstly, I am glad you got my calendar.

Second, thank you for the feedback. I have received similar comments from other friends, family and clients. I have decided that in the calendar for next year, in addition to the cape, I will also wear clothes.

 

[Markthebroker]

Wow - I am industry beefcake? Gosh what on earth then is @Markthebroker

First - One month is not very long, it is going to be a long long long road, Are you focused on Consumers or Businesses?

Second - Make sure your Google Local page is up and running, post on it every 2 weeks for a year. Get some reviews on there, fast. Add your services.

Third - I have found that there are three major problems with growing insurance agencies: Marketing, Market Access, and Closing. Right now I would assume you mostly having problems with one and two.

Also - remember businesses typically only look at their insurance at renewal time - so contacting them at just the right time is often the key to success.

Lastly - this is super terrific advice: