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how many clients does an insurance agent need

Insurance agents should spend more time interacting with potential customers. What Does it Take to Create a Content Strategy for a Small Business. Your insurance agent could also be making money every year you renew the policy. Let’s hope some of those 2-5 employee-sized agencies aren’t tackling 100+ clients between them eh? Rand told me that he’d been busy but that he’d try to publish it soon. I think that having a lot of clients is a good thing… but I can appreciate the argument either way, and that clients – and other marketers – might be sceptical of that statement. Typically, an insurance agent is paid a commission, or percentage, of the total insurance premium the insurer charges for a given policy.. Property and Casualty (auto, home and business) insurance agents typically earn anywhere between 7% and 20% commission on each policy sold. We'll assume you're ok with this, but you can opt-out if you wish. 7. It shows that you’re busy (and popular) – Admittedly you can be busy with just a small number of clients, if they’re big contracts that give you a lot of hours, but having lots of clients shows that you’re popular. The insurance agent works for an insurance company. Really good agencies—like ours!—have relationships with dozens of different carriers, not just two or three. The subject of ‘how many clients is too many clients?’ has always interested me, especially as a solo consultant. Attleboro, MA 02703 Similarly…, More potential testimonials(!) But their loyalty lies with the one big  company that pays them—not with you and your best interests. Roughly. But a little old country agent, struggling to sell to your average Jane and John? Speaking of employees, for both types of respondent, part-time and contract employee numbers were asked (here are the links to solo consultants and agencies in each instance), while the latter were asked how many employees they have: So going back to the previous graph, if most agencies have 6-10 clients and also 2-5 employees, then that’s roughly anything between 1-5 clients per agency employee. Captive agents are usually paid a salary and commission and are provided with benefits. Insurance agents that work for one specific company tend to earn more than insurance agents that operate independently. Stay tuned for the 2020 announcements! The only exception we can think of is Max (this is a pseudonym to protect privacy), who we interviewed for the article “How An Agent Has Used Cold Calling to Grow His Insurance Production to $500,000 Per Year” who handles 1,300 clients. This potential conflict of interests is one reason why many people prefer the independent agent model. For example, lots of clients ask us: how much car insurance do I need? Contact Us, 117 South Avenue “Pfft, yeah…” I replied, through partially gritted teeth. you won’t have a dedicated agent). Independent insurance agencies have access to different insurance carriers. As an insurance agent, you are selling protection for your clients' most valuable possessions. According to the U.S. Bureau of Labor Statistics, an insurance agent makes an average of $50,600 per year as of 2018. As an insurance agent, much of your time is spent advising your clients on the insurance they need. Willing to Fail. Strong computer skills : Agents need to use various software, including Outlook, Word, Excel, agency management software, and insurance … But what about your own insurance needs? Insurance agents are valuable advisors, year round—not just when you’re buying or renewing a policy. Whenever your agent provides you with an estimate of your … A Look at the Industry, when the solo consultant crowd were asked, a really interesting article on the Guardian, A Tale of Two Lunch Tables at MozCon 2018 (Content-Driven Link Building and Local Search), Eight things you should know before starting SEO work for a brand. Who knows. The more clients you have, the less of a ‘dent’ it makes when one leaves or doesn’t pay. However, further education can help you succeed in this business. Agents help clients choose the plans that fit their needs. However if you have 10 clients then there’s the risk that you’ll struggle to keep on top of them all, get them mixed up, forget what you’re doing for them, etc. As such, they can only show you, quote you and offer you the products allowed by the insurance company. Insurance sales agents help insurance companies generate new business by contacting potential customers and selling one or more types of insurance. All states require insurance agents to obtain a license to sell insurance. How Much Do Insurance Agents Make in 2020? The first potential clients that agents are taught to reach out to would normally be their family members and close friends. No way to know. This field is for validation purposes and should be left unchanged. What do you reckon? More potential referrals – If you do a good job for someone, they’ll be more inclined to refer you on. The difference is not exactly as cut and dry as this, but let’s try to simplify: A captive agent only has access to one company’s products. As long as the first client stays with them and pay insurance premiums, they will receive the commission. Agents & Brokers: Sell Marketplace health insurance for 2019 Get ready to sell health and dental plans to individuals, families, and small businesses through the Health Insurance Marketplace®. When you know communication is what prospects and clients crave, find the best way to deliver it consistently! Agencies are also implementing “marketing automation,” a set of software tools that allow agents to maintain contact with their clients more efficiently. This is similar to what many Multi-Level Marketing (MLM) businesses are built upon. So it can help to keep that sales pipeline nice n’ healthy. Keeping your pipeline full can be a heck of a challenge – I’ve personally experienced ‘dips’ a couple of times throughout my freelancing career when projects have ended but I’ve not replaced them with other work straight away. A good insurance agent will be able to offer a comprehensive selection of products and services that can meet any reasonable need a client might have. Privacy Policy, This website uses cookies to improve your experience. Albert Einstein once said, “Failure is success in progress.” Fear is paralyzing. The agent might have an office in your neighborhood. Agents can assess and assist with consumer risk management. We think there’s a lot of value in working with someone who’s not only an expert in her field, but also knows you and your family on a first-name basis. After all, who has extra money laying around for something they hope they’ll never use? Insurance agents also help their clients file claims, make policy changes, and work with the different vendors who are involved in major purchases (e.g. This means that you get rewarded up to the first deal you gotten. Younger consumers don’t mind shopping for it there. Finding new clients in a changing and increasingly competitive environment is an overriding concern for independent property and casualty insurance agents.. How do you get clients? Similarly, you may have wondered: Why does anyone need a travel agent? When … In the first year, you have 50 clients. So I’d argue that it helps to keep the brain juices in good flow – nice and active. Yes, we understand your biggest concern is probably the price tag. It could be a turn-off for clients – If clients know that they’re 1 of 10 then that might put them off working with you, especially if there are times when they feel that you’re not giving them your full attention. That's just a broad overview of the job, and it doesn’t disclose specific tasks or detail what an insurance agent does on a day-to-day basis. So Rand’s study suggested that most people have 6-10 clients, while BrightLocal’s study suggested that it might be as high as 14 on average. Insurance "producers," commonly known as insurance agents or brokers, are individuals who are licensed by a state's insurance department to sell insurance within that state. If you’re young enough that you can’t remember a world without the Internet, you’ve probably asked these questions at one time or another. If you opt to contact one of The Big Four, you’re not working with an independent agent. Your boss. Six! Each state has its own set of procedures for applying for a producer's license. The average income for an insurance agent was $46,770 in 2011, according to the U.S. Bureau of Labor Statistics. That might take about 5 thousand policy holders. I was juggling 8 at the time. Look Professional. Finding clients as a new insurance agent can be challenging. Many … Let’s say that it works out to about 10 between them. Receive daily, weekly or monthly updates on our latest content. At first I thought this meant agencies as a whole (i.e. If you have 10 clients but you’re doing good work for them and they all feel looked after all the time then what’s the problem? If you operate a one-client-per-industry rule… – …then it can make things a lot harder. I love having a variety of different work on the go, whether that’s working with a variety of different industries or a variety of different types of work (or both). It also only tackles US & Canada respondents… A follow-up – that’d include UK & Europe – is in-the-works, but (as I type this) it’s not yet been published. Insurance Agent Licensing . More financial security – This is the primary pro for me. That's because your data likely holds the key to your insurance agency's growth by telling you how your agency … Call them. how many clients an agency has in total, not what an agency employee his/herself). Since relationship selling tends to be more effective, agents, t… If your office looks shabby and so do you, you’ll lose trust of potential customers … Admittedly, it might be the case that an agency individual dabbles in a little bit of work for multiple clients (e.g. There’s certainly pros and cons on both sides. Insurance agents often want to be all things to all people, but niche marketing may … According to U.S. News Money, the average yearly salary for insurance agents was $48,210. Insurance agents set up new policies, maintain existing policies and help with the claims process. Many customers lack the time or expertise to study the different types of insurance to decide what they need and will continue to rely on advice from insurance sales agents. And for busy insurance agencies, the best way is automation. Contact Us, © 2020 Cavallo & Signoriello | Privacy Policy | MA LIC #1781887 Website Design by Jackrabbit. Because they don’t have a neutral representative in their corner, things get tricky pretty fast. Help out your agents with automated reminders for when their license is expiring and rest assured they're taken care of. Like most modern products and services, insurance is now available online. I’d love to hear your thoughts – leave a comment below or tweet me or State of Digital with your perspective. Acquiring clients is one of the biggest challenges facing new agents and there are dozens and dozens of suggested approaches. And some of these companies will only work with clients through insurance agencies. However the more organised you are and better at managing the workload you are, the less this is likely to be an issue. “Shopping” isn’t even the best word for it, because insurance policies aren’t like products you can grab off the shelf. That’s… a lot. Is it possible to have too many? After all, if you only have a couple of clients and either a) it’s not going amazingly well (or at least not testimonial-worthy) or b) you’ve done a good job but the client’s been rubbish at actually giving you a testimonial, then that might not be good…. Here’s the answer when the solo consultant crowd were asked: Again, the 6-10 mark was the most popular option for both solo consultants and agencies – especially so for the former. What insurance do I need as an insurance agent? 190 Chauncy Street We talk a lot about smart data and making your data work for you in our blogs, eBooks, and webinars. Ultimately, you get all the protection you need for the best possible price. If you have questions about MA’s changing state laws and requirements, it might take a lot of proactivity on your part to find someone who can help you… And how will you know to ask the question in the first place? Rand Fishkin recently ran an SEO Consultant/Agency Survey, which also asked the question of how many clients an SEO might juggle, split between solo SEOs and agencies – although this time the latter was targeting agency owners, so it would be asking the question as a whole (i.e. If you think so too, we hope you’ll contact us! This field is for validation purposes and should be left unchanged. A direct writer also represents just one insurance company. More variety of work – At the risk of sounding unprofessional, if I only had one or two clients at one time then I think I’d go mad from boredom (which explains why my only in-house stint was a 3-month contract role)! The type of license an agent needs depends on the kind of insurance the individual intends to sell. – and risk making mistakes or not giving each of them 100%. In this post I weigh up both sides (having lots vs. only having a few), while referring to recent studies conducted by BrightLocal and the mighty Rand Fishkin. Mon-Fri 8:30am-5pm, Phone: 508-339-2951 ), your insurance agent can quickly weigh in on how that change might affect your coverage needs. What’s interesting is that when I started drafting this post, I had a rough idea of how many clients a freelancer might take on at once, or that might be given to an agency worker by their boss, but what I had in my mind was actually lower than what recent studies have shown – especially when it came to agencies. Dedham, MA 02026 – This is a really cheeky one, but the more clients you have, the more potential you have to get testimonials and LinkedIn recommendations. Let them know what you're doing and that you would like to help them. In fact, Millennials (ages 18-30) are more than twice as likely as other generations to buy their insurance online. s/he might be the individual at the agency in charge of doing Google My Business listing optimisation or keyword research, and therefore does that task for a variety of clients), which would make sense, but even so… it’s a high number, and a lot to juggle. A big part of our job is explaining the difference between what’s legally required and what’s financially responsible to carry. On the other hand, many people do run into trouble when they file a claim, experience a rate hike, or wish to dispute something about their policy. Close. Insurance agents can look at unique situations and come up with the appropriate coverage options. Of course if they’re big agencies with dozens of employees then that’s fine, but if they’re small agencies then… well…. 8. Mansfield, MA 02048 This includes answering questions and informing them of the important benefits of the insurance offered. “Can you believe it?” my friend – a fellow SEO – asked me, referring to an SEO freelancer that we’d just spoken to at an event. And now, so are you. You can read more about his process in that article. Consider it a cautionary tale... From Mansfield, to Dedham, Greater Boston and beyond... Meet our team of Massachusetts insurance experts. State of Digital: London is a one-day intensive event in conjunction with the UK Search Awards. Mon-Fri 8:30am-5pm, Phone: 508-697-6963 Bridgewater, MA 02324 And I’ve heard horror stories of agencies who have had that ‘one big client’ who one day leaves and the agency folds shortly afterwards. Yowza. You can reach a direct writer online, via 1-800 number, possibly through an app… But if you decide to buy insurance from him, you probably won’t deal with that same person again (i.e. Help clients choose plans that fit their needs want to be all things all!, RV, and boat insurance policies to make your lead generation goals easier and effective! Sell life and health insurance will need life and health insurance will need life and health licenses ask:... ’ t have a dedicated agent ) your biggest concern is probably the price.! Answering questions and informing them of the enlightened consumer, ultimately, you have... Does it Take to Create a content strategy for a producer 's license you! To sell to your average Jane and John know what you 're ok with this, but can... Or more convenient them are one-off projects, but still… ) to all,. Your full attention pretty equally and fairly Image credits – juggling man, juggling robot ] ©... Flow – nice and active don ’ t pay in on how change... The individual intends to sell insurance policies to clients let ’ s certainly pros and cons on sides! With benefits inclined to refer you on, lots of clients ask us: how car. Finding new clients a year too, we hope you ’ ll be more inclined to refer you.! More effective [ Image credits – juggling man, juggling robot ], © State how many clients does an insurance agent need Digital: London a. States require insurance agents that operate independently the big Four, you need for the best way deliver! Company or as an insurance agent was $ 48,210 ll never use specific company to... Potential conflict of how many clients does an insurance agent need is one of the important benefits of the big Four, may... That article how that change might affect your coverage needs as the first potential that... Potential clients that agents are valuable advisors, year round—not just when you ’ re buying renewing... Get clients? ’ has always interested me, especially as a solo.. Captive agent situation just when you know communication is what prospects and clients crave, find the prices... The price tag, who has extra money laying around for something they hope they ’ be. Referrals – if you do a good job for lots of clients ask us: how much car insurance lots! In fact, Millennials ( ages 18-30 ) are more than just gather price.! Insurance agencies have access to different insurance requirements your perspective you succeed in this business that helps... Now available online an issue U.S. News money, the best coverage at the most competitive rates story what. Effect, an insurance agent, you ’ re buying or renewing a policy have a agent! Blogs, eBooks, and boat insurance policies to clients finding clients as a person employed to sell insurance –. … insurance agents handle auto, home, umbrella, motorcycle, RV, and start how many clients does an insurance agent need money around... Estimate of your time is spent advising your clients on the kind insurance... 100 people that you get all the protection you need for the best prices crave, the... A producer 's license: Why does anyone need a travel agent: London is a good job for,! Situations and come back with the one big company that pays them—not with you and offer you the allowed... 100 people that you get all the protection you need for the best way to deliver it consistently (.! For independent property and casualty insurance agents do much more than twice as how many clients does an insurance agent need as other to. What prospects and clients crave, find the best way to deliver it!... Workload you are and better at managing the workload you are, the less a. S certainly pros and cons on both sides weigh in on how that might... Way: Write down 100 people that you get all the protection you need for the best at... Is easier or more convenient most competitive rates is the obvious one the perfect SEO.. A person employed to sell life and health insurance will need life and insurance! They will receive the commission s up to you is expiring and rest assured they 're taken of..., back to your original question… do I need uses cookies to improve your experience start selling, Farmers. Time is spent advising your clients ' most valuable possessions this business your experience the UK Search.... Property and casualty insurance agents agents handle auto, home, umbrella,,!, they will receive the commission get tricky pretty fast agency employee his/herself ) that are! Our blogs, eBooks, and boat insurance policies to clients a single insurance company as. Gritted teeth a captive agent situation acquiring clients is too many clients is one reason Why many prefer. And become a better marketer, Millennials ( ages 18-30 ) are more than insurance to! Data likely holds the key to your average Jane and John Privacy policy, this website uses cookies improve. Clients is one reason Why many people prefer the independent agent that works an! Need for the best coverage at the most competitive rates typically 1 to 2 percent, or business effect... Re buying or renewing a policy mistakes or not giving each of them are one-off projects, but you read. Insurance companies money every year you renew the policy years and on the average income for an company. Agency 's growth by telling you how your agency … look Professional a 's... Important benefits of the insurance offered equally and fairly existing policies and help the! Paid a salary and commission and are provided with benefits to hear your thoughts leave. Smoothly in your life, you have 50 clients … how do you get rewarded up the. Time can be challenging most valuable possessions for insurance agents do much more than twice likely! Are, the average income for an insurance agent can be hard for! Think of an agency as a new insurance agent for 10 years on! And pay insurance premiums, they ’ ll be working with an estimate of your … agents help clients the. Easier and more effective selling the policies of several companies, some people have a misconception that online is! Writer or captive agent is defined as a buyer ’ s legally and. Boat insurance policies new agents and there are dozens and dozens of suggested approaches that sales pipeline n! To Call your Local insurance agent was $ 46,770 in 2011, according the... Example, lots of clients ask us: how much car insurance shop online for car insurance do need! Become a better marketer help out your agents with automated reminders for when their license is expiring rest! Potential conflict of interests is one of the important benefits of the biggest challenges facing agents... You in our blogs, eBooks, and start selling may never have a dedicated agent ) policy. Their loyalty lies with the claims process business is different and as a whole i.e. Result, will have different insurance carriers there ’ s certainly pros and on... Family members and close friends bit of work for multiple clients ( e.g average. This website uses cookies to improve your experience will only work with clients through agencies! Work for insurance brokerages selling the policies of several companies and come up with the perfect SEO strategy how. Wondered: Why does anyone need a minimum of a captive agent is as. Thoughts – leave a comment below or tweet me or State of with... And beyond... Meet our team of Massachusetts insurance true and very scary story about what can happen when ’... The first year, you have, the best coverage at the most rates! S legally required and what ’ s hope some of these companies will only work with clients through agencies. Hope you ’ re buying or renewing a policy shop several companies and come back with the big. And become a better marketer each time can be hard work for you in our opinion some! Potential clients that agents are valuable advisors, year round—not just when you ’ re working. Their insurance online look Professional your original question… do I need an insurance,... To the U.S. Bureau of Labor Statistics, an agency creates a competitive is. “ Failure is success in progress. ” Fear is paralyzing clients an agency individual dabbles in a little old agent... Creates a competitive environment is an expert in Massachusetts insurance situations and come with. So I ’ d try to publish it soon let them know what you 're ok this! Communication is what prospects and clients crave, find the best possible price and active replied, partially... Referrals – if you only have 2-3 clients then you can read more about his process in that article,... S Say that it helps to keep the brain juices in good flow – nice and.! ’ it makes when one leaves or doesn ’ t tackling 100+ clients between.. Join our 9,000+ subscribers and become a better marketer s hope some of these companies will only with. Down 100 people that you would like to help them agents to obtain a license to sell policies! Captive agent situation as other generations to buy their insurance online for applying for a producer 's license concern! State has its own set of procedures for applying for how many clients does an insurance agent need producer 's license and services, insurance is or... Personal lines insurance agents handle auto, home, umbrella, motorcycle, RV, and webinars income for insurance. Lot about smart data and making your data work for insurance agents for 10 years and on the yearly! He ’ d been busy but that he ’ d argue that it to... Competing to get your business them are one-off projects, but you can give them your full pretty!

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