I talked with a lot of new agents so I figured it would be nice to go over everything you need to get set up for business.
E&O
If you're a new agent, get E&O before you do anything else. Almost all carriers require it and you don't want to limit yourself to only selling the products of carriers that don't. It can take a few weeks to receive your certificate so apply now, then get everything else set up.
Email
Avoid a free account like Yahoo or Hotmail. It's simply not professional - Gmail would suffice if you have to use a free account. Other then that use your ISP account which should either be your name or your agency's name before the "@" - abcinsurance@comcast.net. If you're using Outlook make sure you have it set up to search for incoming messages often.
Phone
If you're brand new to this biz you'll be living on the phone. I'd suggest a land line with unlimited minutes. If you're using a cell just realize that you'll likely be on the phone at least 3 hours a day or 4,500 minutes a month.
If you're married or living with someone you'll want to discuss having two numbers if you're using a land line. We have two lines in my house - one for business the other personal.
Constant Contact
They have a free trial period and I heavily recommend them. They're fantastic for client newsletters and shooting out reminders to prospects.
Voice mail
One of the 1st things you should do when you get started is set up a professional voice mail greeting. I'm really amazed when I call agents who have been selling for months and get "please leave a message at the tone."
Call Forwarding
When you're out of the office during business hours always forward your calls to your cell. You want prospects and clients to be able to reach you at all times without hitting voice mail unless you're doing a presentation. You can list your business and cell number on your emails to prospects but I guaranteed you most prospects are gonna call your biz number and when they hit voice mail likely hang up. Even if they leave a message then it turns into phone tag.
Data Backup System
Have some type of system to back up your data. Some agents use flash drives, others upload it to file storage sites - I personally puts my spreadsheet and documents on Google. If your computer crashes you do not want to lose your prospect and client information.
For me, if the power goes out for some reason and I have appointments lined up anyone can access my Google spreadsheets - just call a friend and give 'em the password. I can also hit the library and pull up anything I need.
Toll Free Number
If you're just local business you really don't need one. If you're doing state-wide or out-of-state business you should have one. I used Ring Central but there are a lot of toll free services.
Fax
Choose some type of fax services - I use Efax. You'll receive a lot of faxes in this biz and a physical machine is a pain in the ass - paper jams, buying toner, poor quality, etc...
Business Entity
If you're gonna use your name "Pete Smith - Independent Agent" you don't need to do a thing. You'll just file as a sole proprietor for tax purposes and don't need to do anything extra. If you'd like an agency name you'll need to register it with the DOI and register your business with the state. You can still file as a sole proprietor so unless you're hiring people you don't need an EIN.
Website
Get one. In this day and age not having one says "new and broke." A website establishes that you're here to stay and give you credibility. If you're money tight this should be one of the 1st things to save for.
Business Account
Find out what your bank's requirements are and get a business account. When I first went independent all I needed was my state business filings (I had to register my business with the state) and my agency license. You really need to separate business from personal expenses and using your business account for all related expenses makes everything easy to track.
Receipts
It sounds obvious but most people don't do it - keep your receipts. I'd heavily recommend getting your taxes done - especially 1st year - by a CPA who will want to see your expenses. If you plan on deducting miles see the IRS rules - you need to keep a log of your business miles.
Meet with an Accountant
when you're new in this biz everyone's a tax expert. I heavily recommend paying a small consultation fee and sitting down with an experienced CPA who will give you scoop on what you need to do for taxes.
CRM
You'll need one for client and prospect management. I use and recommend YIO - http://yourinsuranceoffice.com
Friday, February 22, 2008
Thursday, February 21, 2008
2 HSAs this week
Closed 2 HSAs yesterday from telemarketing - both in-person deals. Everyone here knows or should now that I close deals online and in person - I simply make a judgement call based on my conversation.
Neither of the deals I did yesterday would have closed on the phone. The "I only close by phone" agents will argue that if they can't sign 'em up online there wasn't enough interest in the 1st place so they lost nothing. Really.....go the dictionary and look up denial.
One appointment was actually very fun but long - almost 2 hours. The wife actually broke out her medical bills over the past year and say at the table with a calculator to run the numbers. Of course, they were paying just over $500 and the HSA came in just over $300 so she came out ahead.
My other client was a single guy - 52 and dropped Carefirst around 3 months ago due to cost. He simply didn't fully understand HSAs on the phone and doesn't use the net. He was only about 30 minutes and done.
Hey....I'll sell online when I can but I'll always mix and match it because frankly I enjoy getting out of the house during the week and meeting with clients. What I don't like about face to face is driving all over creation for 15 appointments a week, running night appointments, getting stood up or blown off.
But that doesn't happen when you have the ability to sign people up online. Well over 50% of your clients would prefer doing it online - they don't want to meet with you. I can also sense the level of interest and I'm simply not gonna drive and meet someone with "so so" interest.
And thanks to everyone who emailed me about the association I'm starting. I'm really trying to create something inexpensive that's valuable. For example, for anyone interested in Gary's CRM association members get it at $299 per month - $50 a month discount. Just for the $19.95 a month in dues your ahead $30 a month. And that's one benefit.
I'm going to be very busy building up more and more benefits. If anyone else has any questions about what I'm doing and offering just contact me by email or phone.
Neither of the deals I did yesterday would have closed on the phone. The "I only close by phone" agents will argue that if they can't sign 'em up online there wasn't enough interest in the 1st place so they lost nothing. Really.....go the dictionary and look up denial.
One appointment was actually very fun but long - almost 2 hours. The wife actually broke out her medical bills over the past year and say at the table with a calculator to run the numbers. Of course, they were paying just over $500 and the HSA came in just over $300 so she came out ahead.
My other client was a single guy - 52 and dropped Carefirst around 3 months ago due to cost. He simply didn't fully understand HSAs on the phone and doesn't use the net. He was only about 30 minutes and done.
Hey....I'll sell online when I can but I'll always mix and match it because frankly I enjoy getting out of the house during the week and meeting with clients. What I don't like about face to face is driving all over creation for 15 appointments a week, running night appointments, getting stood up or blown off.
But that doesn't happen when you have the ability to sign people up online. Well over 50% of your clients would prefer doing it online - they don't want to meet with you. I can also sense the level of interest and I'm simply not gonna drive and meet someone with "so so" interest.
And thanks to everyone who emailed me about the association I'm starting. I'm really trying to create something inexpensive that's valuable. For example, for anyone interested in Gary's CRM association members get it at $299 per month - $50 a month discount. Just for the $19.95 a month in dues your ahead $30 a month. And that's one benefit.
I'm going to be very busy building up more and more benefits. If anyone else has any questions about what I'm doing and offering just contact me by email or phone.
Tuesday, February 19, 2008
Independant Health Insurance Agents Association in pre-launch
Well....this has been kind of a secret - a bad one at that actually since I've been discussing it with a lot of agents now for actually well over a year.
Bottom line is simple; as independent agents we have no community - really no positive place to go for training, support and community environment.
Newer agents especially are left hanging out to dry. I really hate the emails I get talking about how agents got burned. There simply needs to be an organization to train and support new agents, get everyone together to trade ideas and start having some fun.
If you're one of those agents who are quite happy to just handle it all by yourself and be left alone this is not for you.
However, if you want year-round support and a community feeling without the "what's your production this week!" bull this is absolutely for you. If you feel that you can benefit financially by being a part of a supportive community this is for you.
I have a link on the top right going more into detail and if anyone has any questions just call me.
Bottom line is simple; as independent agents we have no community - really no positive place to go for training, support and community environment.
Newer agents especially are left hanging out to dry. I really hate the emails I get talking about how agents got burned. There simply needs to be an organization to train and support new agents, get everyone together to trade ideas and start having some fun.
If you're one of those agents who are quite happy to just handle it all by yourself and be left alone this is not for you.
However, if you want year-round support and a community feeling without the "what's your production this week!" bull this is absolutely for you. If you feel that you can benefit financially by being a part of a supportive community this is for you.
I have a link on the top right going more into detail and if anyone has any questions just call me.
Monday, February 18, 2008
My entire system
Few emails asking some details of my system so here it is:
Goal:
I live in a pretty heavily populated city - right between Baltimore and Wash DC. There are thousands of businesses within a short distance from my house.
I think health insurance is a top concern for most people. Most people, if they knew they could better their situation without getting burned would jump on the chance. But that's not what we see - we talk to people day in and day out who we could save a significant amount of money yet choose to stay with what they have.
Why? Fear. Fear of....a lot of stuff - mainly fear that if they switch they'll regret it. With no established name, no reputation and no local presence you're fighting an uphill battle. You can use any marketing tactic you like but it's not gonna build up your name in the community and you are doing nothing to make this business easier for you down the road.
So while most agents are waiting for the next lead to hit their in-box someone one street away is looking for health insurance and don't know they exist. The bottom line is you can buy as many leads as you want - get used to it - you'll be buying them 5 years from now. Referrals from some random deal you closed online will be few and far between.
So my marketing plan is a heavy local focus by:
Notice I have no included things like radio or local TV ads. From the research I've done so far those methods are very expensive with low return.
There's a cumulative effect with local marketing and it takes time and patience. Most agents will give up on a local marketing campaign before it ever gets a chance to get off the ground. They think they'll gonna slap out 100 flyers and their phone's gonna ring. Ummmm, no.
Telemarketing Local Businesses
If you're gonna mail a letter don't make it an infomercial and don't beg for business. Stay away from phrases like "I've been trying to reach you" which makes you sound unsuccessful and desperate.
Flyers in Local Businesses
When I was new in the business I put out around 1,000 flyers per week - now that I'm off the ground I just put them out when I'm out and about however in the spring I'm going to look into paying someone to put them in businesses.
I used to highlight my website and generate leads but a lot of business owners are not web savvy nor are they going to go online and type in their personal information. I switched to promoting my phone number instead with very good results.
Flyer: http://www.savefile.com/files/1387989
For new agents who really don't want to telemarket and are buying a few leads but not enough to really write a lot of business, print off some flyers and hit the streets. Heck, put on jeans and a shit and just leave 'em with the person behind the counter if you don't want to confront the owner.
Your question:
"But what will the return be?"
My answer:
"Better then the return you'll get sitting in your office staring at your computer."
Doorhangers for Residential
I haven't done these actually in over a year since to be honest, it's tiring to walk up and down townhouse steps for 2 hours - it's like being on a stair master for 2 hours straight and you have to get out 1,000 to see the return.
That being said, if you're new they're cheap - 3 cents a pop at http://doorhangers.com
If you really hate the idea of telemarketing or don't have a lot of money then this very well might be the way to get you off the ground. You'll need a lot of townhouse communities - they do not work in single family home areas since it takes too long to put 'em out.
I slap up 200 per hour in townhomes and it's one deal per 1,000 placed. So 2 hours a day or 10 hours a week is one deal. To be frank, that's a lot of effort for one deal however the cost is $30, your effort is free and the average commission on a deal is $700. So that's $700 for 10 hrs of work and can be done early in the morning so it doesn't distract from your day.
PPC Campaign Run Locally.
I'm running a local pay-per-click campaign with nice results. I'm on the first page with 3 to 5th placement for health insurance quotes keyword at around $7+ per click and a 3 to 1 click to quote request ratio.
That means an exclusive lead is costing me just over $20 which I'll take. I'll keep the campaign going as long as it doesn't cost me more than $200 for a deal - which right now it's looking like about $140 for a deal.
My campaign is local - which means your IP address needs to be in a certain radius of my house for my ad to appear. Again, only going after local business.
Sponsoring Local Events
I've sponsored events before and have been successful each time. However, I always defaulted back into buying leads with the "why should I be out here" concept. That's the wrong concept and had I continued sponsoring local events over the past few years I absolutely would have a name in the community by now.
Also, sitting in your house on the phone all day honestly is boring as shit.
So basically I'm trying to brand myself locally - which is just barely starting to work. A marketing exec told me a couple of years ago that the average person needs to see your name at least 8 times before it registers.
Goal:
I live in a pretty heavily populated city - right between Baltimore and Wash DC. There are thousands of businesses within a short distance from my house.
I think health insurance is a top concern for most people. Most people, if they knew they could better their situation without getting burned would jump on the chance. But that's not what we see - we talk to people day in and day out who we could save a significant amount of money yet choose to stay with what they have.
Why? Fear. Fear of....a lot of stuff - mainly fear that if they switch they'll regret it. With no established name, no reputation and no local presence you're fighting an uphill battle. You can use any marketing tactic you like but it's not gonna build up your name in the community and you are doing nothing to make this business easier for you down the road.
So while most agents are waiting for the next lead to hit their in-box someone one street away is looking for health insurance and don't know they exist. The bottom line is you can buy as many leads as you want - get used to it - you'll be buying them 5 years from now. Referrals from some random deal you closed online will be few and far between.
So my marketing plan is a heavy local focus by:
- Telemarketing local businesses
- Flyers put out in local businesses
- Door hangers for residential
- PPC campaign run locally
- Sponsoring local events
- Ads in local publications
Notice I have no included things like radio or local TV ads. From the research I've done so far those methods are very expensive with low return.
There's a cumulative effect with local marketing and it takes time and patience. Most agents will give up on a local marketing campaign before it ever gets a chance to get off the ground. They think they'll gonna slap out 100 flyers and their phone's gonna ring. Ummmm, no.
Telemarketing Local Businesses
- I use MCS's auto-dialer CRM (click my link on the right for Marketing Campaign Solutions) and now use an exclusive HSA pitch which works well for small biz owners. I can generate 3 solid HSA leads per hour with is a lot.
- I shoot all my leads an instant email and also mail a letter the next day. The letter goes a long way to establish professionalism and legitimacy. It separates me from some "glorified telemarketer agent"
If you're gonna mail a letter don't make it an infomercial and don't beg for business. Stay away from phrases like "I've been trying to reach you" which makes you sound unsuccessful and desperate.
- I wait around three days to call back which makes sure they got the letter. At that time I ascertain level of interest, qualify then set either a physical or web appointment.
Flyers in Local Businesses
When I was new in the business I put out around 1,000 flyers per week - now that I'm off the ground I just put them out when I'm out and about however in the spring I'm going to look into paying someone to put them in businesses.
I used to highlight my website and generate leads but a lot of business owners are not web savvy nor are they going to go online and type in their personal information. I switched to promoting my phone number instead with very good results.
Flyer: http://www.savefile.com/files/1387989
For new agents who really don't want to telemarket and are buying a few leads but not enough to really write a lot of business, print off some flyers and hit the streets. Heck, put on jeans and a shit and just leave 'em with the person behind the counter if you don't want to confront the owner.
Your question:
"But what will the return be?"
My answer:
"Better then the return you'll get sitting in your office staring at your computer."
Doorhangers for Residential
I haven't done these actually in over a year since to be honest, it's tiring to walk up and down townhouse steps for 2 hours - it's like being on a stair master for 2 hours straight and you have to get out 1,000 to see the return.
That being said, if you're new they're cheap - 3 cents a pop at http://doorhangers.com
If you really hate the idea of telemarketing or don't have a lot of money then this very well might be the way to get you off the ground. You'll need a lot of townhouse communities - they do not work in single family home areas since it takes too long to put 'em out.
I slap up 200 per hour in townhomes and it's one deal per 1,000 placed. So 2 hours a day or 10 hours a week is one deal. To be frank, that's a lot of effort for one deal however the cost is $30, your effort is free and the average commission on a deal is $700. So that's $700 for 10 hrs of work and can be done early in the morning so it doesn't distract from your day.
PPC Campaign Run Locally.
I'm running a local pay-per-click campaign with nice results. I'm on the first page with 3 to 5th placement for health insurance quotes keyword at around $7+ per click and a 3 to 1 click to quote request ratio.
That means an exclusive lead is costing me just over $20 which I'll take. I'll keep the campaign going as long as it doesn't cost me more than $200 for a deal - which right now it's looking like about $140 for a deal.
My campaign is local - which means your IP address needs to be in a certain radius of my house for my ad to appear. Again, only going after local business.
Sponsoring Local Events
I've sponsored events before and have been successful each time. However, I always defaulted back into buying leads with the "why should I be out here" concept. That's the wrong concept and had I continued sponsoring local events over the past few years I absolutely would have a name in the community by now.
Also, sitting in your house on the phone all day honestly is boring as shit.
So basically I'm trying to brand myself locally - which is just barely starting to work. A marketing exec told me a couple of years ago that the average person needs to see your name at least 8 times before it registers.
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