A direct marketing department of an insurance company can help brokers write cases. A viable source of brokerage is an independent marketing department. This report shows 10 directions that the broker can use to map out insurance companies and independents.
You must prioritise your values as a broker in order to determine the most beneficial reasons to use which services. Services provided by an insurance company’s marketing department can be very different from those offered by independent insurance marketers in important areas. These are the areas of brokerage that deal with substance.
1. Leads Very few brokerage companies or insurance agencies provide leads to brokers. Free leads should not be mentioned as they may only have a few buyer traits and are not true leads. Leads are the best value. You cannot waste your time with suspects. The marketing department can help with cost co-op. This allows you to control the lead type, location and qualification process. If leads are involved, a significant portion of your business will need to be spent on this company or an independent choice.
2. Commissions & Renewals Not only should you be looking at the first year commissions but also renewals. There are some products that offer no renewals or production requirements. Others offer second-year policy payouts at a rate similar to the first year’s commission rate. It is important to be able sell the policy, because 100% of nothing is not something.
3. Ratings and Brand Name. Unless you have been brainwashed in the past, don’t think that your customer gets the best value due to an insurance company rating. It is obvious that there are always rating changes on top-tier companies. Their main concern is to ensure that the customer receives quality benefits at a fair price. The best companies spend millions to promote their brand. A large part of this expenditure comes from higher premiums and lower commissions or more difficult claim payments.
4. If your portfolio of products meets your needs, it might be wise to run your entire brokerage business from one marketing department at an insurance company. Brokers often need different policies, even within the same product line. To put together your own lineup, you may want to combine independent and direct connections.
5. Minimal production This is where many brokers get burned. They don’t read the contract that they sign to generate business. If minimum production is not achieved, the company can immediately terminate your contract for receiving renewal commissions and first year of receipt. Companies are constantly selling off product lines or discontinuing products. These actions could lead to you spending your money in the gutter.
6. Personal Service Independent marketers and insurance marketing departments have a long tradition of offering little to no service once you have been contracted. If you have a case that is not being resolved, find out what they will do for you. Do not allow them to make money from you if they refuse to help you.
7. Product Knowledge is often required when you are faced with an unusual situation that requires you to know some things. Sometimes, the staff at an insurance company or independent brokerage company is comprised of unqualified rookies. It is best to take your case elsewhere if you know more about them than they do.
8. Policies Benefits Ensure that you provide the riders and benefits that your clients want. It is not a good idea to sell inferior plans or bluff. There are many excellent direct insurance providers and independent marketing agencies that can provide a solution that is right for you.
9. Your Comfort Zone Don’t fall for the trap of being outside your comfort zone. A marketing department can offer product selling ideas that can help you make a lot of money. Many times, the products can be difficult to sell or the clients are difficult to meet with. Your income will plummet to the minimum wage if you find yourself in a position where you cannot comfortably sell prospects.
10. Plan “B” Expect the unexpected. Notifications can be sent by mail to let you know that your main company has discontinued offering your meat or potatoes insurance plan. As an emergency backup plan, you should have a plan “B”. It is possible to add an additional carrier that you offer a small business to. This way, if the lights go out you will have an immediate backup.
If you’re a good broker in the insurance industry, remember that there are many independent and direct insurance marketing companies that will need you more than you do. They are looking to make a profit from you. You should be cautious, but don’t let that stop you from looking for ways to make a difference. These 10 points will help you get the most value.
Don Yerke is a published author who likes to focus on the things you don’t know and what no one else dares print. It’s okay to tell it as it is.
His new paperback book will be available on Amazon in the summer. This book is packed with valuable information about insurance brokerage, sales, and recruitment.
Napoleon Hill’s FREE eBook “Think and Grow Rich”, available now.