How my proposed plan started to evolve. Before switching career direction, I was fortunate to have built up a respectable life and health insurance career. Each time you sell a policy the insurance company gives you a file card of important data on both the insurance policy and the insurance buyer. Towards the end my large file box contained over 500 prime cards. It seemed silly to trash can all this information. These insurance buyers had already bought from me and therefore were worth more than leads with hit and miss sales.
My idea needed to be tested. I knew these personal buyers of mine were great, but would they be receptive to other agents? Could I make it worthwhile to me and also to the prospective insurance agent buyers of my policy holder cards? The only way I could tell would be to put it to the ultimate test. I approached two insurance agent acquaintances and laid out my plan. With me I had brought about a dozen policyholder cards. I told them how my policyholders could become their policyholders for a relatively low cost of $5.00 per buyer card, buy a set a time limit of first rights for 3 days. That would mean $2,500 cash total. I let each of them pick 4 buyer cards each.
THE RESULTS 2 days later I received a phone call from one of the agents. The agent was thrilled with the immediate income that had resulted. 10:00 AM both agents came by and plunked down the full $2,500 cash for the insurance buyer cards.. I was happy and when I talked to them 6 months later they told me their results. On the 300 former buyers of mine they saw, their commissions were over $60,000. They estimated the remaining buyer cards would bring in at least $40,000 more. (remember now this was 26 years ago). Their only regret was that I did not have any more policyholder cards to sell them. In any business a return on investment of 10 to 1 is excellent. A return on investment of 40 to 1 is unheard of.
YOU CAN DO IT But to be the big winner, you have to be the sly agent that purchases the policyholder cards. If you are in a career agency this works really easy. Due to high turnover, at least 10 agents are at the end of their short career. Offer to buy one of the agents a nice lunch in exchange for a short chat that can benefit both of you. Find out how many buyer cards the soon leaving agent has, If there are at least 50 or more, offer a cash payment of $8.00 to $10.00 each. He gets say $1,000 he desperately needs, and you have 100 insurance buyer cards worth more than $5,000 in leads. When you start getting low, approach another agent to keep the flow going.
It is perfectly legal, and it gives you an edge on all other insurance agents in your agency. Plus with less time prospecting and more time selling, your workload will become more pleasurable.