Whether you are new to the insurance industry or an experienced career agent, your success will largely be driven by the kind of relationship you have with your insurance marketing organization. To ensure your success and that of your clients, take the time to find the best fit and value for you.
Finding a marketing organization requires a combination of research and networking. Browsing Web sites and reading trade publications are good ways to start your research, but the best method is still the old-fashioned one-on-one talk with your friends and colleagues, people at industry events, and agents who are affiliated with these organizations.
The path that many agents take in their careers starts through a friend. After a time, agents often find that they need more resources, so they join an organization that provides leads and other support. The next stage is often either with a carrier-sponsored shop or what I like to call a "partner."
Finding through a friend
Most agents tell me that they started out in this industry because they had a friend who was achieving some success. In many cases, these agents worked for an agency that provided support and encouraged recruiting. Agents often start this way on a part-time basis. After a time with this kind of organization, the agent may outgrow the relationship and be ready for a little more training and support.
Lead provider
This is a good place for those not comfortable with cold calling but who are ready to take the next step toward full-time activity. This type of organization provides leads at an often-substantial "soft-dollar" cost. Typically, you would agree to a reduced contract level in exchange for free leads, office space, phones, and administrative support. Depending on your annual productivity, these leads could cost you thousands of dollars. If you earn $100,000 in annual gross commissions and your lead provider takes 30 percent to offset the cost of your leads, you have paid $30,000 for these leads. There comes a time when most agents determine that they can provide their own leads at far less cost.
Carrier-sponsored agencies
This works for captive agents who are working out of an office storefront. The agent can use their sales skills and industry experience that they learned during the first two stages of their career, with the added benefit of co-branding with a nationally recognized franchise. Minimal training and support are provided in exchange for specified productivity levels. By far the most structured environment for agents, it can be an opportunity to expand your presence in the market. As your build your relationships with clients, you become less reliant on the national brand with which you partnered. Most importantly, you realize that your clients are coming to see you.
Partner
By now you truly understand the value of having clients for life. This understanding allows you to build your own brand and your practice in the community. You are provided with access to a diverse portfolio of products, training, and thorough home office sales and service support -- all while enjoying the advantages and rewards of independence.
It is not an easy transition. There is risk. You pay all of your own costs: administrative support, health insurance (for you and your family), retirement account -- everything. However, a partner provides the maximum mutual benefit.
Ideally, it is a relationship of equals, where both parties are independent yet interdependent. An effective partner provides the best possible balance of client benefit and agent compensation. The partner is also a resource for information to help you and your clients make decisions. A strong partner also has market muscle and knows when to use it on behalf of its agents. In the best relationship, the partner listens to you and values your ideas.
While most agents are contracted with multiple marketing organizations, here are some important advantages of placing a majority of business with just one of them:
o You'll know the players.
o You'll have access to knowledgeable agent sales support and policyholder service all at one phone number.
o You'll get commissions and incentives with less record-keeping.
Finding the perfect agency can take some time and effort, but once you take that first step in your career, the rest will follow.
Lynda Regan is founder and CEO of Legacy, a national marketing organization specializing in traditional fixed and indexed annuities. She can be reached at 888-343-0882, or by email at lynda.regan@legacynet.com.
