Yesterday there was a post in the Insurance Soup Facebook group about what kind of foods should never be brought into a break room in the office for lunch. I stated on the post that you shouldn't be bringing lunch. You should be making it a point to be taking someone to lunch each day. A referral partner, someone involved with investment properties, a local business owner, SOMEONE that has the ability to turn business over to you either ongoing or someone that has an elephant for you to land.
An agent mentioned that this was a waste of money. $15 a day to buy another person lunch is $300 a month. That money could be going to marketing was the reason to not take someone to lunch.
My friends...
If $15 is too much for you to sit down with a person to build an actual relationship, actual rapport, and to start an actual client/ advisor relationship, I do not know where else to go with my advice.
We are in a relationship business and we spend our days trying to run away from, avoid, and duck relationships. We want automation, staff, and technology to do everything. $300 a month to have 20 real conversations a month.
If 60% let you quote them, you quote 12. If you close 50% as a captive you closed 6 deals from it. These should be closing at a rate of at least 50% as you are choosing who to lunch with and should know who your ideal prospects are or at least what they look like from 10,000 feet.
6 deals on just a normal household at 2.5 products per household = 15 new policies.
15 new policies x 12 months = 180 policies a year.
180 policies @ $1000 in premium per policy = $180,000 in premium... for eating... which you are doing regardless..
$180k @ 12.5% (using that as an average of captive and independent commissions) = $22,500 - YEAR 1.
I think we get residuals in this business too. I heard that somewhere.
$300 a month ($15 a day to buy someone elses lunch) X 12 months is $3600 in marketing dollars.
You are cash positive $18,900 your first year.
You made a 625% return on investment your first year. And that is from taking 1 person to lunch a day.
Getting 60% of them to let you quote and closing 50% of those people.
20 lunches.
12 households to quote.
6 new households per month.
And thats if you are only taking out personal lines prospects. If you are taking out referral partners you are trying to land, investors, business owners...
Never lunch alone my friends. Your lunch dollars ARE marketing dollars.
If you understand the game.