Starting Your Own Independent Insurance Agency? Study Up on These 3 Key Success Factors.
By: Michael Miller, Smart Choice® State Director
Starting your own independent insurance agency is both exciting and overwhelming. In my 37 years in the business, three factors stand out as being essential for the success of any independent agency. Agents must be experts in all of the products they offer, have plans to market their agencies, and have systems in place to generate leads.
Success Factor #1: Expert-Level Insurance Product Knowledge
I always mentor new agents to sell on the value of the policies they quote, not cost. But to do so, they must have a solid understanding of every single product they offer, including differences between carriers. You should strive to become a resource for your clients as well as a risk expert. Your clients rely on you to identify and understand the products that will help them mitigate risk.
This is why it often pays to start writing just a few policies—P&C, for example. Once you have these products under your belt, it’s time to extend your offerings to umbrella policies, recreational policies, and even the commercial and health/life markets. Take the time to learn about each product in your new market.
Success Factor #2: Independent Agency Marketing Plan
Before you open your doors to clients, you need to have a plan in place for reaching out to your target market. A comprehensive marketing plan identifies your growth goals and the strategies you’ll use to achieve them.
Marketing plans should include what separates you and your agency from your local competition and how you’ll promote these differentiators to your clients and prospects. Take the time to outline the specific things you’ll do to market your agency. Will you hold homeowners insurance seminars for first-time home buyers? Send out postcards to every residence in your target area? Create a website where prospects can request a quote? There are all sorts of ways to market your agency; you need to pick a few ideas that you’ll follow through with.
Success Factor #3: Lead Generation Strategy
Your marketing plan should outline a strategy for how you’ll generate leads for your independent agency. Leads can come from outbound marketing efforts such as newspaper ads, radio and TV commercials, and email blasts. But often, agents focus on inbound marketing strategies, such as asking for referrals from existing clients, blogging, and social media marketing.
There are many factors that contribute to the success of an independent agency. But lead generation, a comprehensive marketing plan, and expert product knowledge contribute the most to your future success. That’s why Smart Choice® offers unlimited training these key success factors. Contact Smart Choice® today!