Referrals are a premier source of new business for insurance agencies. As an agent, I loved referrals. It was an opportunity to build my business – a visit with a likely buyer. All salespeople need to cultivate referrals.
A mid-size agency’s VP of Marketing told me they follow a referral system. They do not cold call, they rarely advertise and do not leverage any other marketing tools or outreach programs. This system has yielded some success, but unsatisfactory growth rates. I explained that referrals should always be one of the legs of your stool, but you cannot expect to grow consistently standing on one leg.
You always need a three legged stool. Referrals, referrals and more referrals do not work. Never ignore these opportunities – they close faster and more often – but make sure they are only one piece of the puzzle. Exclusively chasing referral business puts a governor on your growth.