Debate Of A LIFETIME! Location Location Location!

[lifeagent007]

Ok so I have been doing research on what is the best location for an agency that focuses on Property and Causality, Life and Health for personal lines. I have looked at several locations ranging in price from $350 a month hole in a wall to $2500/month high visibility high traffic. I do have the finances backed up to pay all associated cost of starting an agency but would still like some advice on the best location for an agency that is trying to focus on personal lines and (hopefully) walk in sales. When you start an agency that offers "auto home life health" and put up a sign in a busy location, will people stop in? Or am I wasting my money on an expensive retail location?

Any other advice on starting up would also be appreciated.

Thank you!

 

[insurance1822]

In my experience, you do not want walk in business. In fact it's the worst kind. Every market is different though so that's mine.

I know guys with agencies on main strips with huge signs. Those signs generate mostly non standard business..but..it can convert to preferred and business is business.

I have a hole in the wall..in fact my $200/month is so pathetic it's actually embarrassing. I also out write everybody in my market.

Id say take the hope in the wall & spend the difference on a person who's soul job is to nurture & create referral sources.

 

[FL P&C Broker]

Walk in business sucks. Get into a nice building with professionals. The biz you will eventually get from them will be way better.

 

[xrac]

Who needs an expensive location for a new agency? Keep the overhead as low as possible.

 

[lifeagent007]

Id say take the hope in the wall & spend the difference on a person who's soul job is to nurture & create referral sources.

Thanks for the reply. So curious how do you hire someone that nurtures and creates referral sources? What is her job title and job description? How does she go about building referrals? Do you have her work with your current clients for you? Just curious as to how to hire someone like this.

 

[Emmaus]

Id say take the hope in the wall & spend the difference on a person who's soul job is to nurture & create referral sources.

I've tried the hiring for referrals route...It worked when I worked for another agency in a different state.

Now, since I've moved and opened my own small 300k (approx.) P&C agency, I can't find anyone who wants paid for leads (local person). What's your process for hiring someone, how do you pay them, etc.? I've had a very hard time writing business this year... Insight appreciated!

 

[AZDave]

Ok so I have been doing research on what is the best location for an agency that focuses on Property and Causality, Life and Health for personal lines. I have looked at several locations ranging in price from $350 a month hole in a wall to $2500/month high visibility high traffic. I do have the finances backed up to pay all associated cost of starting an agency but would still like some advice on the best location for an agency that is trying to focus on personal lines and (hopefully) walk in sales. When you start an agency that offers "auto home life health" and put up a sign in a busy location, will people stop in? Or am I wasting my money on an expensive retail location?

Any other advice on starting up would also be appreciated.

Thank you!

My very first office was in a brand new strip center located on a major corner in Phoenix, AZ. The neon sign was over $7000 and that was in 1986. The walk in business sucked and being an agent for a brand name, American Family, I would spend more time servicing other agent's insureds!

However, there was some phone in business that sought me out due to the location - but not enough to make the location worth it.

Now I'm in professional office building for a fraction of the cost and the few walk ins I have had are pretty good.

Keep the overhead low. Good luck!

Dave

 

[1manshow]

Playing devil's advocate here....mr consumer drives by a sign on the busy street every day on his way to work...the sign changes every week...this week it says "We just saved John Smith $639 on his car insurance" Do you think mr consumer might eventually get curious enough to call? what if he knows john smith...will that increase the odds?

15 years ago, our call in business increased by over 30% in our first year after moving from main st office bldg to a highly visible street with lighted sign out front.

I don't argue that location will outperform your hard work, but who wants to work hard all the time.

 

[lifeagent007]

Playing devil's advocate here....mr consumer drives by a sign on the busy street every day on his way to work...the sign changes every week...this week it says "We just saved John Smith $639 on his car insurance" Do you think mr consumer might eventually get curious enough to call? what if he knows john smith...will that increase the odds?

15 years ago, our call in business increased by over 30% in our first year after moving from main st office bldg to a highly visible street with lighted sign out front.

I don't argue that location will outperform your hard work, but who wants to work hard all the time.

I am debating back and forth in my mind and am having a really a hard time here. I just talked to the realtor who is representing a space i really like. Its a free standing building on a busy street. Rent prices have been down there becausing its an aging neighborhood. However it is very busy. The square ft. Total is 2,900 (large i know) but i could use the space as i will also be traning other agents and setting up a local captive (indy but work for me) shop for life as well. The owner wanted 9 dollars a square but i negotiated to 7 a square taking the before cam price a month to $1690 from $2200.


The other option i was looking at is just to take a small hole in the wall for $350 a month really small but cheap.

My question is do you think i should take the risk on the larger and much nicer free standing building
Or just sucl up pride and start in the hole and work my way up??

 

[1manshow]

I had a good sized book when I moved so expense wasn't such a big factor. Only you can gauge your ability to absorb the cost. I think for an extra 1200/month I could do a boatload of marketing to get my agency off the ground...then look at a long term commitment to the expense of a high visibility location.

Hope it works out well for you.

If you go the cheap office route...I'd suggest looking into becoming a Quantum club member for a few months with some of the $$ you save. It will pay you big dividends in the long run.