Since competing on price isn't an option, you must demonstrate your value as an insurance agency. 5 Best Practices for Selling Business Insurance. What to expect during your insurance license exam. Today, we're walking you through all the details of selling your insurance business. We don't even ask you that upfront; we want to get all the information together first. This is especially useful if you engaged in a long conversation with many points.
Focus on Specific Audiences. Click the button below to learn more. Is my prospecting list specific or vague? For some producers, it's the best part of sales; for others, it's a dreaded chore. Sales always come with a certain amount of risk, so your buyer will want to take care that they're not going to lose money in the long run. When the exam is complete, you'll immediately find out if you passed. Every wise buyer understands that there is some risk involved in any kind of acquisition of this size, but when seeking to sell your agency, it's important to put your best foot forward and present your company in the most appealing light possible. Selling Commercial Insurance in a Hard Market. Control what you can to make it as well-organized as possible. Build Out Your Marketing.
Think about it from your own perspective. Given that framework, it's much easier to close deals. Find and maintain clients. Steve: And what about your website? Do they normally take quotes every year, or rarely? Or you conduct renewal meetings in ways that help you deeply understand your clients' businesses. There may also be a week or two of waiting for the license to be issued once your exam and background checks are complete. How to sell commercial trucking insurance. Selling your agency is the main event that will enable you to see a return on the fruits of your labor while relieving you of the responsibility that comes with owning a business.
You may need to show proof of your completed training class before taking the exam. And then any other expenses that are not business related, that are paid through the company. While beginning the renewal process as early as possible helps everything move as efficiently and effectively, don't be surprised if you still have to work up until the last minute during a hard market. Compared with the one-on-one process that often occurs with B2C. The "Earn-Out" Method. How to sell commercial insurance in texas. So, it's beneficial to narrow down your target customers and specialize your insurance expertise. Commercial auto insurance: Insurance agents who drive to see clients or conduct other business need to insure their vehicles appropriately, as personal auto insurance policies don't cover business use. Quickly and adeptly moving that commercial prospect through your system without straying from your growth course—that's where the money is! Laura: Well, the first thing is that it's essential for a seller to make sure that they truly want to sell their business. There are times where they state they need someone else's input to make a decision.
And that makes a big difference when you have a good team to work with like that. You must be appointed by an insurance company before you have the authority to sell its products. An independent agent is someone who works with more than one insurance company. Going the extra mile for your clients with solid communication will keep from any surprises in the long run and increase loyalty. It's like their child. Life is kind of a little bit different. And, and even though it's a necessary thing, sometimes you might have to pick eating overpaying your insurance. Naturally, you will want to write that business, but it leads you into being a jack of all trades and a master of none. But the benefits are worth it, and Firefly can give you the carriers and support you need to succeed. Or would you rather take on a little extra risk for the possibility of earning more money in the long-run? Using these types of insurance selling strategies can help you find more leads and move them through the funnel. Best way to sell commercial insurance. Follow up with all of your clients to make sure they have the complete coverage they need. Now collectively, Sunbelt Atlanta Business Brokers have closed hundreds of transactions and the companies they have sold range in size from 100, 000 to $50 million in revenue and spanned all industries, Doreen Morgan owns Sunbelt Atlanta and she is one of the leading merger and acquisition advisors in the United States specializing in franchise and specialty distribution business models.
Whether that means upselling them with new lines of coverage or getting them to expand their existing policies. It's an ideal close for prospects who are in a rush, when a conversation has gone smoothly, or when you need a classic stand-by. Considering Selling an Insurance Agency? Stop! And Read This First. Specialists tend to make significantly more despite having far fewer potential patients. There are many reasons why the market cycles have become less volatile than in the past, but that doesn't mean that the market conditions can't change. This kind of market is marked by: -. In the time you could have written 5 home/auto accounts, you write one $5, 000 commercial account instead (which may be more service intense, and will probably want to be shopped more often).
If someone from out of state maybe is looking to relocate and buy a business in the Atlanta or Georgia area, you have so many contacts. Perhaps your value proposition tends to be more about your service model. You can position your insurance agency as a valuable resource to help clients solve these types of challenges. Your buyer will pay you 60-80% of the value of your business upfront, and the remaining 20-40% will be paid out over time as your agency grows and produces net profits for the owning agency.
A high volume of clients are needed to grow by finding new leads and expanding your reach. If possible, split your list into several smaller ones—industry program, weaker incumbent carrier, etc. Get honest feedback throughout the process, and don't be afraid of a no - if you understand what their fear is, you can help them overcome it. This is especially useful if you have a difficult time reaching a client, which is common in the commercial business. When we talk about the total earnings of your business, there are two key numbers to look for: your annualized gross commission and your EBITDA. The trucking industry, for example, has experienced a hard market even when the industry as a whole was soft. Meanwhile, you're much more likely to sell your business for what it's worth instead of accepting a lower price or a larger note. It takes a deliberate decision and discipline.
Some studies say it takes an average of eight cold calls to reach a prospect. But the total value of your business isn't necessarily easy to calculate. Anything up to eight weeks, we would consider that typically included in the sale. If you're ready to step back from your business and enjoy retired life but you want to give yourself a little time to adjust, selling your business is a great choice. A hard market is a great opportunity for commercial insurance, but it takes a different mindset than a soft market. Is one of your employees ready to take on ownership of the company? Business brokers can reach out to contacts in your industry and help you market your agency as a potentially profitable acquisition for larger companies.
Before you begin the process of getting licensed, you'll need to know which products you will be selling (see above) so that you choose the proper license for your insurance agent business. So, business owners usually prefer the cheapest option to complete the transaction. 5: Upsell Current Customers. Let them know that you will be shopping for the best deal for them, and give them advice for lowering their costs, if appropriate. For example, you can use referrals or testimonials to gain your prospective clients' trust. Lastly, don't overlook your current customers. Insurance agents must be licensed to discuss insurance products or complete sales. Compare quotes from trusted carriers with Insureon. Steve: Okay, because we get people out of the Atlanta area that listen to the show. We'll go into more detail later, but for now, here's the most important thing to know: Yes, it's not always easy to accurately estimate the true value of your business and get a good deal, but Sunbelt Atlanta can help! "I need to look at other options.
Objections are not the end of your conversation. Your prospecting targets should be specific—location, renewal date, industry, size and incumbent carrier. Steve: You do so much work, Laura, before it gets to that point.