Guide to Insurance

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How Much Do Insurance Agents Make

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Insurance marketing is the foundation for you to build your insurance agency. And in part 2 of this 3 part series I talked about what you need to use as the mortar to hold your insurance agency together.



So now lets cover the third Biggest mistake made by insurance agents in a down economy.

Big Mistake number 3 is Thinking that the recession is reducing your clients spending power. This is dangerous for several reasons, but the glaring reason this thinking is a mistake is you will not offer coverages and protection according to the clients real needs because you may think they can not afford it. The truth is they can not afford NOT to have it especially during a dip in th economy.

Another reason this is big mistake number three is this thinking is off base because reduced spending power is really inflation and that is not a real concern for the USA due to the fact that we have such a global economy. In shot, The pain from the Jimmy Carter era will not revisit the USA. Besides, when you study history you would be shocked to discover the amount of money spent on entertainment during recessions. Why is that important to you? Because this fact should help you plan effective insurance marketing. Here is what I am talking about.

Since entertainment ranks so high for your clients you should have your insurance marketing machine tuned into this. Plus, the fact that so much money is spent on entertainment in a down economy gives you some insight into how your clients think. In other words,most of your clients will want an escape from the perceived challenges facing them and that is why entertainment always is a booming market during a recession. Entertainment gives them something different. A bright spot in an other-wise perceived gloomy situation. This why big mistake number 2 is so important not to commit.

Your clients are just like everybody else in a lot of ways. And this need for escape is an ongoing social phenomena that increases in down economies. This is what they value and that is why your insurance marketing is so vital because If your clients are getting what they deem to be value from your insurance agency then even in a recession they will pay money.

Let me clarify something. I am not saying that you have to be Disneyland and be entertaining, but I am saying that you can not afford to be boring. I covered the danger of boring insurance marketing in a different article.

Let me give you an example. I have a question for you. What is your Unique Selling Proposition? (USP). What separates you from the guy or gal a couple of doors over? ( And if your answer to this question is only product differentiation then you have got BIG problems because companies will always be changing their products and certain coverage will always be here today and gone tomorrow) And is your USP based on what YOU feel is important or was it arrived at by determining what your clients deem to be important?

Basing your difference solely on the product is the foundation for the dead end death road of becoming a commodity.

In summary, there are some businesses that will truly be negatively impacted by a recession, but a properly informed agency taking proper actions can not only survive a recession, but it can thrive in a recession.
How Much Do Insurance Agents Make
Insurance marketing is the key to any insurance agency's survival. And in part 1 of this three part series I covered the number one biggest mistake insurance marketing mistake most insurance agents make in a down economy.

So now lets cover the number 2 Biggest mistake made by insurance agents in a down economy.

But first let me say that this BIG mistake is something that most insurance agents make even in a good economy and probably is one of the biggest leverage points I personally used when I built insurance agencies from scratch.

What is the number 2 biggest insurance marketing mistake?

The mistake is Not staying in touch with your clients on an ongoing consistent manner with several types of media and NOT always in a sales motion.

This is a HUGE insurance marketing mistake that far too many insurance agents make. Why is this so important?

Here is an analogy, think of your insurance agency as a brick building and each client represents a brick. Your ongoing, consistent insurance marketing is the communication that is the mortar that keeps the bricks together. And there are several forces trying to separate the bricks and bring your insurance agency tumbling down. I need not name all of the competition that insurance agents face, but one of the subtle constant forces blowing against your agency during a recession is the media.

That is why your insurance marketing machine must stay in touch with your clients. Because you must combat not only the on slaught of the competitions constant poaching of your insurance agency, but you MUST beat down the medias slanted view on the economy. Here is the bottom line. The media loves negative news. Period.

Always has and always will. Why? Well, you would be ignorant to think that it has anything to do with reporting the truth. Truth is way down the totem pole as far as what they are wanting in a story, but the reason they love to promote negative news is one thing and that is it sells. Period.

It is one of those perverse peculiarities of humanity. We all gawk at an accident and it is no wonder the National Enquirer is the number one selling newspaper and has been for years! (If you do not believe me then look it up. I know, shock, gasp, despair - but true).

So you must use your insurance marketing to stay in touch with you clients on an ongoing consistent manner using several types of media and the reason you must use several types of media is because your clients have a short attention span and they get bored faster than a 3 year old watching Hamlet.

Plus, some of them prefer to read, some prefer to listen, some prefer the combination so you must be sure to fill your clients heads with positive counter acting information to overcome and inoculate them from the infectious disease being spread by the negative media. And you must use your insurance marketing to touch base with your clients not only in a consistent fashion, but probably of even more importance you must NOT be trying to sell them in every communication.

So if you are one of the 97 percent of insurance agents who have clients that only hear from you when there is a bill or when you want to sell them something then this is your wake up call.

I hope you have found this information helpful, but more importantly I hope you use this information to implement an insurance marketing system to help you grow your insurance agency.
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