B2b....or B2c (which Do You Like)?

[Mike Siegal]

Searching for input from the PROS here...

I'm a beginner and have acquired both PC and LH lic. After talking to lots of FMO's, agencies, etc I LEARNED that there are 2 biz models. Now I'm trying to determine what's best for me. --->"B2B or B2C"

I Want to get a discussion on Why agents feel "it's better" FOR THEM to do B2B or B2C? I am considering LH ("group" sales vs "Individual)" And also PC ("personal lines" vs. "PC Comm.").

Looking at it from an objective point of view, B2b vs. B2c are totally different business models and would require Totally different skill sets.

I'm of the opinion that:

• B2B - harder to get started, requires more reputation, but business is stickier and easier to maintain an income level, in the same vein it is harder to grow huge. B2B focus is more on utility, efficiency, robustness.
  
• B2C - easier to start small, harder to grow without first becoming a sensation, customer is more fickle and tougher to survive "small/medium", but it is easier to grow large income on achieving momentum. Consumer focus is more on fun, helpful, viral.

I'm looking for feed back or opinions on B2B vs B2C.

QUESTION;

• Which Biz Model is best "for you" and WHY?
• Have you ever tried both or switched from one to another...if so Why?

Anyway, i'd appreciate your constructive input and Thanks in advance.


~M

 

[DHK]

Too many variables beyond what you've mentioned to consider.

In my not-so-humble opinion, the first thing a new agent needs to do is build momentum in their career. Consider how many homes are in your area... compared to how many businesses. I'm willing to bet there are 100x more homes than there are businesses. That's 100x more decision makers for each CEO of their respective households... and you're generally able to talk to them more easily than through a 'gatekeeper'.

Now, where do you think you can build up more momentum and limit your travel time/distance in the beginning of your career and phase into the other market over time?

 

[somarco]

I am not a P&C guy and I haven't done B2B in years. That being said if I was starting out I would take DHK's advice and go B2C.

It is a numbers game. Doesn't matter if you are pitching HO and auto or life and health. Odds are better in B2C.

On the flip side, consumers are price conscious. If you don't have competitive rates you might as well go home. Pearly white teeth, a great smile and charming personality can only take you so far.

You haven't said anything about your background. Have you sold intangibles before? How did you generate leads? Were your sales over the phone or F2F?

Selling insurance isn't the same as selling cars, TV's or appliances. You are selling a promise to pay and expecting the consumer to shell out several hundred (or thousand) dollars per year in exchange for nothing more than a promise.

 

[Mike Siegal]

Thanks Guys,

I have sold mortgages, real estate, cars, retail, been a manager at a LARGE land development company. Off the top of my head, i like B2b because of 8-6pm schedule. I also like working in a team player environment...not too good as a lone wolf. The intangible i sold was mortgages and i did pretty good at it. I did that because the $ was great. I even Started a mtg.company back in the day, made a nice chunk of money and then sold the biz to my partner right before crash.

ALSO, i noticed in myself that i'm not too keen on the idea of doing house-to-house "sits" to pitch a product at someone's kitchen table. (maybe i could get over this if the $ was really good).

It would be great if i had enough MOJO to get the client to come to me. BUT, now that i think about it some more, I realize that means doing direct mail, advertising, walking-talking, phone calls, etc. So, i'm not sure how this would play out in Reality???

This field is so vast that its hard to figure out which way to go???

Anyway, i'm just thinking out loud and wanting some feed-back from the guys who have been there.

~M

 

[somarco]

You don't have to sell in the home. A lot of agents do, but some (like myself) don't. It's all done by phone.

There are advantages to both, but if you don't like in home sales you won't stick with it, no matter how much you make.

Getting folks to come to you is probably going to be a challenge. If you conduct seminars your odds of making the sale after the seminar improve.

Retirees (and soon to be retired) have lots of days free. All my sales are done during day time hours. On rare occasions I will call in the PM or on weekends.

 

[Markthebroker]

I started selling b2c, went to b2b, now only sell b2b. More money, and you are selling more on facts and logic, and less on emotion. Personally I would stick with b2b, but to each their own.

Disclaimer: I have been selling b2b for 15years, so b2b insurance has come very easily.

 

[LostDollar]

Caveat-not an agent-just a comment for consideration.

Many years back, when computer software was much more simple than it is now, I worked for a few months on a computer help site, doing online advice for people with computer infections about clearing the problems with their machines. There were some simple issues I understood and could help folks clear, leaving others the time to deal with more complex issues which they understood how to fix.

The posters often expressed appreciation for the help they received.

I would think that the b2c business model would be more likely to allow you to see the difference you make in peoples' lives by helping them with complex business issues which they do not understand.

 

[Markthebroker]

Even though LostDollar isn't an agent, he does make a very good point. There is a lot more to the story, but he is correct.

 

[Tothetop]

DHK posted a video that I wish someone showed me when I first started and I was throwing a whole bunch of ideas on the wall trying to see which would stick, basically trying to find my target market.

In the video the seminar speaker gave the top secrets to successful agents who deal with B2B type folks. In it he said that those type of producers do not refer to themselves as life insurance agents or whatever but rather financial professionals. They were all basically securities licensed and they charged a fee for their advice.

Unless you know many business owners or truly understand their mindset and their issues , the odds of success are much better with B2C.