Businesses are not easy to run. Retail chains, auto shops, restaurants -- you have to move with the times, keep up with your competitors' business, and constantly analyze your potential revenue from all angles. It's not a part-time job. It's not even a full-time job -- it's so much more.
The same goes for brokerage agencies, as well. As a distribution channel that places insurers' offerings with field agents who then present these products and services to consumers, brokerage general agents must keep an eye on their competitors. If they present a benefit you don't have, such as stellar back-office support or an attractive array of products, it can become easy to lose a current or potential agent to another BGA.
It's not solely up to your BGA, however, to keep tabs on what consumers need and want. Not only must you put out feelers, but also keep your broker aware of the conditions you're facing. If they still won't budge, it may be time to search for another agency.
As part of the special section Partnering with a Marketing Organization, Ron Rawlings discusses other red flags that should move you to seek another primary BGA on page 48. This section kicks off with the results of the 2007 Brokerage Study, a product of collaboration between Agent Media (publisher of the Agent's Sales Journal) and NAILBA (National Association of Independent Life Brokerage Agencies).
This study was designed to gauge producers' general experience as well as their relationship with brokers. For example, how many agencies are the majority of your competitors writing with? When you're working with just one and other agents are writing their business through two BGAs, would it behoove you to explore this option for yourself?
By aligning yourself with the practices of other agents and constantly striving for more, you'll be better equipped to listen to what your prospects want. An employer who refuses to change with the times is not helping your business thrive, so ensure that they're aware of what you and your consumers need.
Breaking into new markets
Do you remember the last time you looked at your product portfolio and really thought about the products you are offering your clients?
Have you ever revisited your book of business to identify new target markets and prospects?
What about considering new applications of existing and traditional insurance solutions such as life insurance and estate planning?
Innovation is an essential component of any successful business. If a television manufacturer refused to explore the option of a color picture, they'd be wiped out by the clamor for other companies' "new and improved" product. What if Ford continued making black cars -- and only black cars? Or, for a close-to-home example, imagine what would happen if the insurance industry did not move on consumers' changing needs?
The fact is, this industry must constantly shift along with prospects' needs and desires. Keeping up with the times is a no-brainer -- it's the same reason why agents should apprise themselves of any media attention given to the insurance sector. Clients will ask, and you must be prepared to face their questions.
Consider reverse mortgages for a moment. The offering has been around for more than 40 years, but they became especially attractive in recent years due to the surge in housing prices. An option once presented to financially bereft seniors, reverse mortgages allow
homeowners to trade in their home's equity for payments made to them by the bank that purchases that equity. Today, it is a fit worth considering for seniors looking for income that may be applied to everything from medical coverage to home renovations and vacations.
When meeting with a senior prospect, you may face mention of a certain financial issue your potential client would like to solve.
You're stumped.
Now, imagine one of your competitors working a prospect you've also identified. The senior they're meeting with mentions a financial issue that they'd like to solve. They present an array of solutions, some the same as yours, but one product looks like an especially good fit -- a reverse mortgage. Assuming it fits the needs and qualifications of the senior client, the other agent can easily pick up their business -- business that could have been yours.
How can you uncover burgeoning markets? Pay special attention to the mass media. Pay attention to the issues your clients are beginning to face for the first time in their lives, and consider thinking outside the box. More choices are better than fewer any day of the week.
Sincerely,
Chirstina Pellett
ASJeditor@AgentMediaCorp.com
