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... /2013 12:00:00 AM by CompleteMarkets Editor , Damond Benningfield This content has not been rated yet. Competing for prospective clients costs money, with high advertising and marketing expenses taking a big chunk out of commissions. But some agencies are reducing or eliminating competition by entering niche markets. Companies often pay higher commissions for niche-market programs, and because there are few competitors-and in some cases, none at all-there are few wasted sales calls. Niches are windows of opportunity. They often begin with a request for special coverages from ... retention rate is very high. Once you establish a relationship, it tends to be longer lasting than the standard business relationship. The ability to provide sufficient amounts of surety credit has traditionally been the major competitive factor among agents writing surety bonds. But that could change. Prices for surety bonds are no longer regulated and price-shopping may become an issue. But regardless of what happens in the surety market, Ward will still be writing other types of coverage. In my area, we have to be all things to all people, ' ... general agency. In fact, target marketed' programs, as he calls them, are so profitable the Everhart has abandoned more conventional lines of business. Two of his four niche programs-notary public bonds and used-car dealer bonds-are marketed solely within Texas . The others-personal watercraft (jet ski) insurance and hole-in-one coverage-are marketed outside the state as well. When Everhart started his agency on April's Fool's Day 1970, he handled standard fire and casualty lines and specialized in the trucking industry. But he quickly found that he was spending most of his time ...

...as traditionally been the major competitive factor among agents writing surety...about two-thirds of the hole-in-one insurance market in the , also sells promo...

... should be a generalist or whether he or she should specialize in a certain type or size of account or in a particular line of business. It is important to consider the producer's own experience and desires, but the final decision should be driven by the availability of competitive products and services from major markets and the agency's overall business plan. Agency management also has to decide what each individual producer is expected to sell to the identified accounts. Options include: new coverages to new account; new coverages to existing accounts originated by the ... new and sometimes very different set of rules. Take the concept of loyalty, for instance. Once upon a time (not so very long ago) it actually meant something to have had a long-term contract with an insurance company, insureds stuck with the agency despite price variations, and employees put more value on security and longevity of employment than they did titles and advancement opportunities. Sales and management techniques that helped you establish and maintain relationships 10 or 20 years ago are of little use today. The agencies that are doing well ... that are monthly, some quarterly, and at least one that is an annual contest. Rewards can range from a traveling trophy, a weekend in a nearby city, the right to go on an insurance company bonus trip, a 4 or 7 day cruise or ski trip, a monetary bonus. Criteria for winning' can be the producer (or team) with: the largest percentage of growth; the highest commission dollar increase; the highest number of new accounts written; the best hit ratio of written/quoted; ...

...e driven by the availability of competitive products and services from major m...any bonus trip, a 4 or 7 day cruise or ski trip, a monetary bonus. Criteria fo...