A Risk Aversion Model Increases Sales 0

consumer behavior
Your product might fill a “need”, and if you’re lucky your product fills a “want”. And in the world of sales, there is a difference between the two. But that’s just touching the emotional-tip of consumer behavior. If you are an insurance agency, an insurance agent, or you’re in sales, it’s probably a safe assumption that you want to expand your knowledge on consumer behavior so you might increase revenue.

Turning the sizzle into more sales:

In the world of insurance, an agent is often confronted by resistance when trying to convince a reluctant client to insure against low-probability losses. This type of consumer behavior was the subject of an article published in the Journal of Risk and Insurance, reporting that there is a preference among clients for insuring against small losses, opposed to the larger less likely events that might occur. In the article “Preference for Insuring against Probably Small Losses: Insurance Implications”, the question researchers attempt to answer was, “What determines whether people will act to protect themselves from the severe consequences arising from a low probability event?” Continue Reading

The Critical Element To An Effective Operation of a Salesforce. 0

Salesforce Efficiency
The greatest increases in profit are obtained through improved salesforce efficiency, not through salesforce size or allocation adjustments. As the leader/owner/manager of your insurance agency, the first priority is providing support and clarity to your salesforce. In regard to support, your insurance agency must have an infrastructure in place. Depending on your agencies marketing strategy, things like a desk, phone, fax, and copy-machine, are just the beginning. And in regard to clarity, as the leader/owner/manager, you should be providing your agents with a detailed roadmap on generating leads and how to close the sale. Continue Reading

It’s Your Insurance Marketing Money: Make Sure You Have a Positive ROI 0

ROIGetting ready to spend money to market your agency? You’ll hear everything except: “It’s your money”.

As you proceed in business many people are going to try to sell you goods and services. You will hear: “It’s tax deductible”. This advice will usually come from a salesperson half your age who has never been self-employed and doesn’t realize that you have limited resources to spend and your marketing spend has to make you money or you don’t have any or henceforth owe the IRS any.

You will also hear ‘ You have to spend money to make money’. This is true and if you don’t you will greatly handicap your earnings. If you take every dime home from your business you won’t have a business. The question is ‘when and how much to spend?’ Continue Reading

How to improve insurance marketing in todays market. 0

Insurance Niche MarketingToday insurance agents, agencies and companies are actively marketing every place they can. Some are using direct mail, others are using newspaper ads, internet (website) and online advertising (pay per click) …and still other companies are doing all four, and more. In my opinion this marketing blitz is partially due to the insurance industry attempt at trying to counter balance the recent surge in negative insurance industry news. However the combination of “negative media” and “saturation of insurance marketing” are pushing  advertising costs higher, making it harder for smaller agencies to compete in advertising.

Why Use Niche Marketing

As a result the smaller insurance agency maybe feeling a bit out-gunned in their advertising budget; however, there is a solution! Continue Reading

Start Up A Small Insurance Agency – Insurance Marketing 0

open your own insurance agency

How Do I Start My Own Insurance Agency?

How to start up an insurance agency revolves around insurance marketing and advertising. This means an agent needs to consider the capital required to run, market and promote their agency for the first 12 to 18 months. During this time an agent needs to invest in at least five different sources of referral. Below are some general insurance marketing ideas to help you consider the start up cost for an insurance agency: Continue Reading