Success in Numbers?

I get that, if thats the niche u want to go after; go for it.

2 questions:
Wldnt most agencies prefer 100 standard househoulds over 300 non-standard househoulds?

What do "non-standard" agencies do for customers that stick and after a few years become "standard?"

I dont mean to be pessimistic; just looking for some perspective.
 
Non Standard has a worse retention ratio and LOTS more service work and usually only monoline policies.

I personally dont want my BOB over 10% of substandard business.
 
Personally, I couldn't handle owning a mostly non-standard book but some agents make good money from it. You dont have the long term stability and profit share but you can do well with broker fees and the high premiums.

I have a small non-standard book but most of them stay that way for a bit because they get another ticket, accident, or their credit does not improve. I also don't chase payments but if you have a system in place it could work.

Turn on your TV and you can see the local non-standard agencies advertising $30 down payments etc:twitchy:
 
The two best things about the insurance business are:

1a. Renewals
1b. Contingent commission
2. Being able to sell your book

Non standard business whipes out 1a and 1b and severely penalizes you on #2 when you go to sell. The valuation on non standard business is roughly half of the standard market. If you are in a really depressed area and don't have any other option... move:)
 
Not all states allow for broker fees, mines doesnt, so thats why it isnt a target market for me.
 

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