Author: VU Faculty

Question: I was wondering if there were any specific marketing techniques that other insurance agents have used that could help a young agent (less than one year in the business) get more of a "grip" or hold in the market. Is there a tried and true method utilized to get a young agent's name more "readily" recognized in a saturated market?

Recently, our "Ask an Expert" service received the following question:

"I was wondering if there were any specific marketing techniques that other insurance agents have used that could help a young agent (less than one year in the business) get more of a "grip" or hold in the market. Is there a tried and true method utilized to get a young agent's name more "readily" recognized in a saturated market?"

In one way, this question raises more questions than it answers. What particular market, if any, is the producer targeting? In what field or industry, if any, does the producer have expertise? Below are some general comments from our faculty and we invite further suggestions from our readers. If you have ideas, email them to Bill.Wilson@iiaba.net and we'll post them below. Be sure to include your name, agency, and city/state for credit.

You did not give us much to go on. I am not sure what kind of insurance you are selling or what you mean by a "saturated" market. And, in answer to your question, yes, there are ways for a new producer to make an impact, it just depends on what type of insurance you want to sell and to whom.

The key is networking, networking, networking.  I recommend a good book by Dean Lindsay called "Cracking the Networking Code."  His website is http://deanlindsay.com/. 
 
His points are timeless advice for making new connections, either with prospects or company reps. Get out there consistently. Make it a priority. Plan it. Do it, and watch the network generate new opportunities.

There are no secrets -- hard work and knowledge of insurance are the most important thing.

What are the young agent's strengths? Does he/she have any strengths? Does he/she know a particular industry well?
 
Perhaps you might reconsider the role of a young agent during their first year in a very complex, dynamic industry. Put them in charge of all the detail work for a successful senior producer, then turn the proven producer loose to generate a wagon load of business.

What are the producer's strengths? I knew an agent who was a professional musician (one of thousands who couldn't make a good enough living at just that) who focused on the entertainment industry and has done very well. Another agent was an assistant golf pro who focused on country clubs, which led to high value personal lines and commercial lines accounts of members. Another agent came from a family of jewelers...he sells principally jewelers block policies from coast to coast (with a carrier with whom he developed a special package program).

A good start is for each producer to weigh his/her strengths and weaknesses and familiarities with certain industries, then seek a good carrier/product for that industry. Then he/she should work diligently on sales, service and marketing skills through formal education.

I used to tell new, relatively unskilled personal lines producers to visit every apartment and condo complex in a 25-mile radius and leave a "doorknob marketing kit" with tenants and homeowners. The majority of renters don't have an HO-4 policy, much less an umbrella (which would come in handy is they burn the building down). Admittedly, the premiums aren't great, but they probably need auto insurance and will one day become homeowners and perhaps business owners.

It's an efficient way of marketing and could lead to a move into commercial lines insuring the apartment complexes and condo associations. Great interpersonal and public speaking skills are a must...develop a 30-45 minute seminar that can be presented at apartment and condo clubhouses for free for tenants and owners.

Also, have the producer join every local civic group he/she can for the networking opportunities. If the producer has a field of expertise (e.g., contractors), he/she should consider joining organizations in that industry and become more visible.

A new producer should focus on industries he or she knows well or can learn quickly. Study Best's Underwriting Guides for specific industries and read all you can about them online. Once you're comfortable with your expertise, set production goals. Studies show that one of the top three reasons for failure by new producers is failure to set and achieve goals. Most young people have very poor personal management skills. Here's a VU article that provides specific guidelines (and forms) for setting sales goals:

"How to Increase Your Commissions by 50%!"

Do you have an opinion?  Do you have suggestions for new producers that have worked for you or in your agency? Share your experiences and thoughts with others by emailing them to us at Bill.Wilson@iiaba.net and we'll post your comments here. Be sure to include your name, agency, and city/state if you'd like credit.

Your comments here....