Business Referrals Aka Courting?

[1manshow]

One small tip on the networking at chamber "type" events that has paid huge dividends for my agency.

When I'm introduced or chatting to a new acquaintance I always ask for their card and never offer my own unless asked. The next best sentence has been asking them "When I'm dealing with one of my clients, how would I know if they were a good prospect for your services? Gets them talking about what they do and how good they are at it...I usually wrap it up by telling them I will be sure to tell others about their business. I normally tell the ladies that run my office to send referrals their way the next chance they get. You'd be shocked at how much business you'll be writing when you focus on sending referrals this way.

One thing I'm wondering...you only write personal lines? If that's the case, I'd shift gears away from the chamber and focus on more productive prospecting.

 

[DHK]

You need 1 of 3 things to get referrals from them:

1. Make them a client.
2. Send them business.
3. Commission sharing.

The rest will be wasted effort.

I'm going to add a 4th idea to this list:
4. Pay them a fee for their time!

If you want an attorney to become your client, get on their calendar for 1/2 hour or 1 hour, whatever. It's now YOUR time to show the attorney the kind of work you do.

The reasons you wanted to meet with the attorney or CPA are:
1. The attorney/CPA may have an interest in this kind of work for themselves.
2. My personal goal is to have met face-to-face with every estate planning attorney or CPA in the area, and I thought that by paying your fee would help me accomplish this goal much faster and to show you that I value and respect your time, and that I'm serious enough about my business that I put my money where my mouth is.
3. I may run into your clients, and it would be nice for THEM to know that you've already met me at least once.

Give them a reason why they should want to partner with you:
"I'm a prospecting machine and I review more people's situations in a week than most agents see in a month. Most haven't updated their wills and trusts (or really should be working with a CPA) and would need these services. If I'm already familiar with all the attorneys/CPAs and their preferred profile specialties, I'm one-step above my competition."

By paying the attorney/CPA's hourly rate, you give them a business reason to meet with you during the day.

Disclaimer: I have NOT done this. Some of our industry's top producers have. Ben Feldman comes to mind.

 

[Full Throttle]

I agree with you, I would send them to my "guy/gal." So do you pass out their card or just give out their contact info, then follow up and let you're referral friend know you gave their info to someone who should be calling them? How do you show the other person that you're sending referrals his/her way? Will most referrals just say, "Hey, Adam at AAA referred me to you."?

Idea: With clients copy of insurance application and other paperwork, what if I put together a list of vendors who I'm doing referral business with and possible include business cards? Anyone do anything like that? Pros and cons? I doubt I've got any new ones that haven't been tried.

Sending business is great, if you have the ability to do it in sufficient volume. My problem, I have enough COI's sending me business that's it is impossible to send enough business their way to make it equitable. To fix this, I split commissions (mainly P&C agents and registered rep's who are licensed). In your situation, this doesn't sound like an option.

Think about it this way: let's say you send all or most of your referrals to one mortgage broker and one real estate agent. How many transactions do they do in a month? And of those transactions, how many of their customers already have a relationships with an agent? Even if you send a lot of referrals, it won't produce much volume. Worse, some don't get it and won't give back (it will still go to "their guy").

If I was you, here is what I would do: prospect real estate agents and mortage brokers for their personal business. Go over and beyond for them, keep in contact, and over time you will develop a referral flow. You can send them a gift card to say thanks for a referral if you choose to, but that won't be the driver of the referrals. The only issue, this will take time to build any momentum (probably a couple years). But I guarantee you it will be more effective and you'll be generating business today on their personal business without much of a marketing budget that your business doesn't support yet.

 

[sonofthetis]

Some suggestions:
- A lot of realtors pass out flyers (walk neighborhoods). In exchange for referrals, put your name on their flyer (preferred insurance agent recomendation) and pay the printing costs. Be careful, this can get to be expensive.

- Any kind of comarketing activity is usually seen as a win-win.

Dan

I fully agree and support these ideas. Realtors are always looking to reduce costs, and this has been very productive in my past. If you align yourself with an agent who works and lists, this is a very cost effective way to do it.

My experience is to give the realtor priority status on the flyer, have them pdf their space, and allow you to use "your guy" to print them. This will help "your print guy" and allow you to be responsible for saving some money yourself.

Realtors in my area are a PITA, but a necessary evil

 

[Indiana_Adam]

Do No Soliciting signs apply only to door knocking or does it also apply to door hangers and flyers in mailboxes? I'd like to not piss off my potential prospects.

Full and Son, I'm going to try combining your ideas. Approach realtors to write them (starting with my own realtor) and offer to do the flyer thing. Maybe work with a few realtors and switch weeks/neighborhoods in which I pass out their flyers. Or do you think that will cause some animosity?

 

[VolAgent]

Do No Soliciting signs apply only to door knocking or does it also apply to door hangers and flyers in mailboxes? I'd like to not piss off my potential prospects.

Full and Son, I'm going to try combining your ideas. Approach realtors to write them (starting with my own realtor) and offer to do the flyer thing. Maybe work with a few realtors and switch weeks/neighborhoods in which I pass out their flyers. Or do you think that will cause some animosity?

It only applies to those that choose to observe it. They want to keep out obnoxious people who are selling the junk of the day and wasting employees time. Amway, Girl Scout Cookies, Coupon Books, annoying Yellow Pages salespeople, etc.

Are you annoying and obnoxious? If no, go on in.

 

[Full Throttle]

If you are going to pass out flyers, pass out your own.
- - - - - - - - - - - - - - - - - -
Or better yet, knock on the door.

 

[VolAgent]

I did miss part of your post Adam.

Don't put flyers in mailboxes. It is a Federal crime to put anything besides mail in a mailbox. The US Postal Inspection Service doesn't have much to do these days. Don't make yourself a target.

 

[Indiana_Adam]

Big 10-4 guys. Thanks. I'd like to not get arrested. Can't really cold call many people with that 1 phone call, nor would they accept the charges for the collect call.