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Fallacy #3 in Target Marketing
This is the sixteenth article in a series of Target Marketing ideas that I hope will help you to think differently and set yourself apart from your competition. In this article I will deal with another fallacy of target marketing; “I need to write several hundred accounts in a particular industry in order to have a successful target marketing program.”
This is simply not true. There are several elements to a successful target marketing program, one of which is income to your agency. Many agencies specialize in rather small commission accounts. In those cases they need to write several hundred in order to make it profitable for both the agency and the producer. However, there are numerous large commission industries that you can target that will make it possible to set yourself apart as the expert and write enough of them to be very profitable. For example, if you were to find an industry where the average annual commission is $10,000 for all lines, you only need to write 40 to have a $400,000 commission income book of business.
Don’t get hung up on the numbers of policies as much as the total commission for a single account. Once you become the recognized expert in that industry the business will come to you. I have had prospective clients ask me to take over their account on a Broker of Record letter.
One other item that relates to this subject is for you to try to find an industry that is having an insurance problem. Those accounts tend to develop more commission, and once you have a market you will be on a roll.
I welcome your comments, and if you are interested in taking my complete Target Marketing Seminar, please give me a call at 714 813-3221. Four hours could change your entire career. (4 CE credits available in California)
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