Marketing At Its Core…

Marketing At Its Core…
By: Katie Wilmoth, Director, Marketing and Communications

This past summer, my husband and I took our kids to the beach – our kids (at the time) were 6 years old, 4 years old, and 9 months old, so we had our hands full! I find that at their current ages, they’re like a mini case study in the ways of the world. I never cease to marvel at how perceptive and astute they are for their ages.

At home, we don’t keep cable or satellite and instead, stream or download things we’d like to watch. So our kids have no concept of what television was like in the old days, and therefore, they aren’t familiar with commercials.

Throughout the course of the week, our oldest daughter would run up to one of us and say something about one of the commercials, or “previews” as she called them. IN fact, our kids were more interested in the commercials than in the shows they watched. As someone who’s made a career in marketing, I marveled at just what an impact direct marketing had on my kids in that short amount of time. I even caught them singing “Nationwide is on your side!” repeatedly as they played in the waves one day – “Mom, did you know Nationwide is on our side?” my six year old asked me – proving that, whether or not they knew exactly what the product did or was, the message the marketers had intended for them to remember had indeed been successful.

One night, my daughter said “Hey Dad, we need to get some of this lotion because it will make our skin super soft and shiny.” And I listened as my husband said “Okay listen Lila…these are called commercials, and the people who make them are trying to sell you their product by making it sound like the greatest thing in the world. So they’re lying to you to make it sound better than it is…that’s what your mommy does for a living…”

I looked up at him shocked and amused that he would say such a thing to our daughter, and he was looking back at me laughing. My reply to him was “You’re a LAWYER! Why don’t you tell her what YOU do?!”

The story is funny, but it got me thinking about the definition of marketing at its core. Sure, there are plenty of infomercials that use over-exaggeration and half-truths to peddle cheap wares (though I’d say that’s closer to the definition of sales, not marketing) – but at its heart, that’s NOT what marketing is. Marketing is about highlighting what sets your product or service apart from the competition. And if you’re doing it RIGHT, it’s also about highlighting the things that you do well and at which your product or service excels. You pick out your best assets and tell people about them. Think of it as socially acceptable bragging!

If you would like to read more Marketing tips, check out Issue IV of the Smart Choice Magazine!

Understanding Contingency and Bonus Requirements with Your Insurance Carriers

Understanding Contingency and Bonus Requirements With Your Insurance Carriers
By: Michael Miller, Smart Choice® State Director

As an insurance agent, your business lives or dies on the amount of new and renewing policies you sign with your carriers. Years ago, how you got paid was fairly straightforward: you got paid a percentage of the premiums you signed. But carriers have changed the way they compensate their agents.

Today, agents earn a complex combination of commissions, contingencies, and bonuses, each calculated a little differently. Understanding the math can be a full-time job, not to mention figuring out how to maximize your earnings.

Contingency Commissions Reward Performance

You’ll always make a little money on each premium you sign, even if you only sign a few dozen a year. But carriers offer sizeable contingency commissions for agents who set and meet goals for production, retention, and profitability. These rewards are contingent on you meeting these goals.

What’s tricky about contingency commissions is that you never know how much more you’ll end up making as you sign on new clients. The contingency is earned after you meet your goals for the year. When you’re writing a policy in January, you won’t know whether you’ll actually meet your contingency requirements at the end of December.

Bonuses Honor Excellence

Insurance carriers often award agents who go above and beyond with bonus income. Sometimes, carriers run special sales contests for agents to compete in. Other times, they’ll allow a loyal agent to charge them interest on any new business the agent brings in for them.

Getting the Most out of Your Appointments

Contingency and bonus income were initially offered only to the largest agencies, which had the staff and book of business large enough to hit production targets. But that’s changed in the last 25 years. Today, small agencies can compete for this extra income if they’re able to meet the requirements.

Joining an agency group can be a way to increase your chances of earning contingency and bonus income. Agency aggregation pools together the resources of multiple small agencies so they can compete with the larger players. That’s why many independent agents choose to join Smart Choice®. To discover why a partnership  is the smart choice, connect with Smart Choice® today.

 Source: Property Casualty 360