Insurance Agency: Reasons for Failure
There are hundreds and even thousands of successful insurance agents who have tapped into the secret or building a good client base and expanding it through the years. Unfortunately, there are many insurance agencies that fail every year because of various reasons. You might be asking yourself why so many insurance agencies and agents simply don't make it. If you want to avoid being added to the list of failed agents and agencies, here are some mistakes to avoid.
Ineffective Communication with Clients
When clients or potential leads call your office to speak with you, it's important that you communicate with them effectively. This means being upbeat and enthusiastic about answering all of their questions. You should also be able to assess their needs during your conversation so you can develop services and find products that will fit their needs.
If you don't feel that you are an effective communicator with your potential leads and clients, you may need to practice. Some agents have this skill naturally, but you can develop the skills of effective communication by striking up conversations with complete strangers. Do this when you're waiting in line at the supermarket, talking to telemarketers on the phone or with people you meet on the street. You don't even have to talk about insurance. Simply practice your skills of being upbeat and having an informative conversation. Since these people are strangers, you don't have to worry about screwing up because you aren't trying to sell them something.
Refusing to Update Skills and Education
If you want to avoid failing as an insurance agent, it is essential to keep your skills updated and continue your education. One way that you can do this is to pursue other licenses so you can cross sell insurance policies. You can start by obtaining a license to sell property and casualty insurance in addition to the products that you are already licensed to sell. You can also increase your current license to offer more upgraded products, such as annuities, so you can compete with other insurance agents in your field. Specializing in one area can be a good idea, but you are also limited and your clients may search for an agent where they can buy all of the products and services that they need in one place.
Not Integrating Technology
The internet is one of the most important tools that you can have in your repertoire of resources. You can do a lot of things online to increase your chances of success as an insurance agency. A website is mandatory these days if you want to achieve success, but you should also look for other ways to connect with clients and potential customers. Social media is the ideal way to do this so set up a Facebook account, Twitter account and even a LinkedIn account. You can stay in touch with people easier and get update them regularly on new products and information that they need to know about easily.
While there are no foolproof things you can do to avoid failing as an insurance agency, you can follow these suggestions to reduce your risks of failure and increase your chances of achieving success.