When building your business as an insurance wholesale broker, it can be tempting to work with any and all insurance agents you can. Never saying “no” can seem like the only way to build a healthy business.
However, at some point, it is important to be selective. Carefully choosing the agents you work with can actually be more effective in building and strengthening your business than taking all the business you can get. Here are a few reasons why.
Because you’ll write more business with agents who are right for you. You get paid a commission based on the policies you write. Insurance agents whose customers’ coverage needs are aligned with your expertise are likely to bring you much more business. Taking business that falls in your lap is one thing—but when it comes to putting your limited time into cultivating relationships, it’s best to focus on those who are likely to bring in more business for you and your markets.
Because you’ll provide better service. Even if you make every effort to provide excellent customer service and expert guidance to all the insurance agents you work with, you’ll have a better success rate with agents who need the type of coverage you are an expert in. You might have access to markets that write insurance products you are not an expert in and it’s possible to make costly coverage mistakes. Sometimes building up your professional profile means picking a few things to focus on doing well—and expanding into new insurance lines deliberately and with plenty of preparation. This way, you can be sure you can offer the best service possible.
Because your life will be easier. Outside of your insurance specialties and the markets you work with, some people are just easier to work with than others. One of the best things about being an independent businessperson is that you get to choose who you work with—and it can sometimes pay to consider whether the income from more difficult personalities is worth the energy you put into managing the relationship.
Deciding to limit your business opportunities can be difficult—but it can also be one of the smartest decisions you make. When deciding whether to work with a new insurance agent, consider whether their needs align with your expertise, whether you can give the best possible service and guidance to them, and whether their personality clicks with yours and their processes work well with the way you do business. If you do, you may find not just more, but better opportunities coming your way.