My records show that 70% of all insurance brokerage and recruitment firms fail within three years. Many of these failures are due to inability or unwillingness to implement strategies for insurance brokers. This is a review on a national mortgage protection marketing company that is very successful. You may find some inspiration or useful tips in the information presented.
I am not affiliated with the mortgage insurance company “The Mortgage Protection Doc & Associates”. Jeff Futrell, his president, allowed me to share some reasons for his success, which dates back to 1995. To protect clients’ investment in their homes, the two most important insurance products that the firm sells are white collar disability insurance and mortgage protection life insurance. Each product accounts for half of the company’s revenue.
Uniqueness is essential for any firm to be able to attract brokers and write premiums. Jeff believes that the competition is fierce in the mortgage and life insurance industry. He has therefore developed a strategy that separates him from the rest of his competitors and ensures his brokers have high earning potential.
OneBrokers can represent over 40 insurance companies and choose which ones offer the best benefits. Many of his competitors have only one or four insurance companies that they use to write their mortgage life insurance. The agents are completely independent to choose who to write insurance with. Jeff’s motto is “Promoting clients’ needs and policy benefits above commissions.”
Two This strategy involves multiple insurance policies being sold. Many mortgage protection marketers are focused on selling mortgage life insurance. Jeff does this but also has his brokers implement mortgage disability insurance sales. His closing ratio is very impressive at 60%. This double sale is more interesting when you consider that it’s mortgage life insurance and mortgage disability insurance. The closing ratio of Jeff’s agents would be higher than that of a mortgage expert with a 100% closing rate, since they are making two sales.
Three The most important thing almost all insurance marketers overlook is the importance of contracting brokers and helping them find clients. In many brokerage and insurance marketing firms, half of the brokers have never written a single case within the past 12 months. Mortgage Protection Doctor has developed an effective method of acquiring leads in house. The program allows brokers to send leads by direct mail directly to pre-qualified prospects for mortgage insurance. To enable prompt setting up of a sale, the broker gets the exclusive new leads back. This is a huge advantage over using third parties to provide unpredicted and untimely broker leads.
Marketing Strategy Jeff is serious about his recruitment of agents. Starting with broker names from an insurance list compiler, he moves on to a key marketing area. He wants to create a consistent, ongoing mailing campaign to only recruit brokers who meet his requirements. This mail method involves sending large postcards to these brokers with a special reply incentive. He also tried Craigslist advertising with mixed results.
The Secret to Success It is easy to see that everyone who succeeds in insurance marketing or brokerage has their own reasons and secrets. It is a proven system that brokers can use to recruit, as well as a strong relationship with insurance carriers. This is accompanied by a strong commitment to independence for both the broker and the firm. The fact that 75% of business is produced by the top five carriers shows this commitment. This is highly unusual because the top five insurance companies share 75% equally. This is a clear sign of independence.
Additional Comment If an average insurance marketer was asked how much a producing broker would be worth over a three year period, their average answer was $3,600. The figure for Jeff’s operation is $30,000. To make money, you have to invest money. You should also be different from your competitors. It is important that brokers have open communication with you and give you every chance to sell your products. This is an inspiring success story that engages all three of these key elements.
