The 7 Point Guide in Buying an Insurance Agency

Each day the list of for sale insurance agencies of high quality gets updated. With so much to choose from and more added daily, the task of finding the agency that perfectly complements to you is truly a time consuming and complicated one. Whether you want to buy an insurance agency for the first time or you are on the hunt for a merger and acquisition of opportunities, you surely will find a bunch of prospected agencies which will furnish your needs. And after this comes the true challenge of knowing which one is the best for you. Before you buy an insurance agency, here are 7 starting points on how to buy a business that must be taken into...

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How To Turn 1,500 Insurance Prospects You Already Have Into Clients

"I have 200 clients and 1,500 prospects." This was said to me by a financial advisor recently - one who understood what it's all about! I suppose it depends on your definition of a client, but to me it's one who pays a large annual premium and generates referrals.So the philosophy is that there are 200 "clients" who are segmented into A and B based on value. These are talked to and mailed regularly, as any client should be. Then there is the need to add new (high value) clients, which he does by using a range of sources. These are (in no particular order): - Referrals from existing high value clients (he never asks a low value client for a referral) -...

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How A Bank Took Over The Relationship From My Financial Advisor

I had a call from my 'personal banker' Steve a few yeas ago. He said: "Can I practice a new sales approach on you please?" "Sure, why not", I said. "I've just been through a financial planning course and we were told to phone a couple of friendly clients or mates to practice a new type of approach on.""Can I start by asking what your short-term financial goals are? What I mean is do you anticipate making any large purchases in the next 2 to 3 years such as a new house or car or overseas holiday?""Yes," I said in surprise at the question. "I intend buying a new car early next year and taking an overseas holiday later in the same year." "Great,"...

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The Four Fundamentals of Starting an Insurance Agency

Striking out on your own as an independent insurance agent can be a fulfilling, exciting and lucrative experience.Insurance is a relationship business. There's satisfaction in protecting individuals, families and businesses from some of life's calamities. Insurance sales can also be lucrative. By recruiting associate agents, you build residual wealth while offering income opportunities to others. And the freedom and flexibility as are unparalleled.As with any commission-based business, you must get your agency off the ground quickly. Following are four fundamental steps that will give your insurance agency a strong start:Obtain the Necessary...

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Secure The Insurance Sale With Pictures

What do you take to client interviews? What do you present when discussing the client's needs, the concept and the products? Using visual aids will make your job a whole lot easier. Consider the following US research on the subject:If you use visual aids, prospects are 43% more likely to be persuaded; prospects will be willing to pay 26% more for the same product or service (this helps overcome cheaper competitor products); learning is improved by up to 200% (important, since your products are not easily understood by most clients); retention is improved up to 38% and the time it takes to explain complex topics is reduced by up to 40% (it has...

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Six Common Mistakes Financial Advisors Make That Can Lose The Sale

So you have the prospect or existing client in front of you. It has cost a lot of time and money to get this far, so don't blow it! These are a few of the most common mistakes sales people make at the sales interview.First, you talk too much! How can you sell something if you don't know what the client's needs are? This can only come from listening - not talking. As the saying goes, you have two ears and one mouth so listen twice as much as talking. As an idea, try taping the next conversation and analyzing the resulting interview. You may be amazed at the result.Second, avoiding the beginning of the sale. Many start a conversation by picking...

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War Stories From The Trenches That Financial Advisors Can Learn From

Here are two businesses whose lessons apply very well to financial services. These are from real businesses here in New Zealand that happened in the past twelve months.A builder: This business had been static for some time, his advertising efforts being in all the normal media such as radio, press and directories. Wanting to grow the business, the builder analyzed the last 20 jobs and was stunned to find that ALL were from referrals! Until he had looked closely at them he just assumed that the advertising must have been generating the work.So, he made up a list of potential and existing Centres of Influence, being architects, structural engineers,...

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Key Words That Can Excite A Financial Advisor's Prospect

I was at a BBQ and over a drink got into a conversation with two people about insurance and investment. The conversation raised the issue of where you go for financial advice, which developed into a rather interesting discussion. I encouraged the debate and treated it as a research opportunity.Of note was learning about the importance of key words in motivating consumer behaviour - which I will explain. By way of background, the two I talked to have the profile of almost perfect clients. They both enjoy well-above average incomes and high levels of net personal wealth. They were aged 54 and 49 (I asked). The older one is a successful accountant...

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Questions About Selling an Insurance Agency

My firm works regularly with agency owners in the planning and execution of the sale of their business. Some key questions have been raised more frequently with the pending tax increases set for 2013, so I thought it would be helpful to address these to a broader audience in the dialogue that follows. The level of detail is significant but the intent is to provide a more complete discussion of such important questions. I hope you find this information useful in your business planning.1) What are agencies currently selling for as a multiple of revenue?While simplistic in nature, setting a value based on revenue is not realistic. The insurance...

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Red Flags And Costly Errors

The subject of property insurance and claims adjusting often leads to lead to blood pressure rising when speaking with home owners and Condominium Association Board Members. I have heard the nightmare stories. If you dig to find the source of the problem, it is a series of misinformation and errors that lead to costly errors and issues during the claims process.These usually include:Paying too much Gaps in coverage leading to forced-placement by banks Errors and Omissions that impede the claims process. Many times Boards are paying more than they should on their insurance premiums due to unnecessary coverage, mistakes on the appraisal and/or...

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Generating High Quality Insurance Leads in the Real World

New technologies make life easier and more exciting. When it comes to business, we are constantly searching for the latest and greatest to make sure that we stay ahead of our competition. Ironically, when we become consumed by this fear of falling behind, we forget about the most tried and true traditions that established our industry in the first place.Now let's take a look at lead generation in the insurance industry.Anyone who sells insurance knows that if you cannot high quality leads, then generating sales is going to be close to impossible. The internet has done wonders for us as insurance agents looking to generate new high quality leads;...

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