Direct writers spend millions of dollars a year trying to stealyour clients, and in most cases they succeed. It's not because yourclients don't like you; the real reason is likely due to how easysome direct writers make it for your clients to do business withthem. If your agency operates in a state where major direct writersalready write insurance, you know firsthand the challenges youface. However, I'm quite sure that most agents fully understand thebeast they're competing against. Television commercials are onlyone way direct writers are winning the battle for your clients. Theother, more dangerous tools they use are social media and theInternet. I know what you're thinking: People don't buy insuranceonline, at least from me. Let me quickly dispel this myth. Celent,a research firm to the financial services industry, recentlyreleased a study that projects online insurance sales to double by2011, and that the Web will play a major role in most personallines purchases across auto, life and health. To cement thisstatement, I recently did a search of online spending at KeywordSpy.com, which revealed some startlinginformation. GEICO spends on average $447,666 per day on GoogleAdWords (a pay-per-click advertising tool which allows you to runads on Google's search results), generating more than 50,516 clicksa day to its Web site. Progressive spends $436,246 per day, whichgenerates 45,821 clicks. Esurance spends $272,067 per day,generating 39,205 clicks. Direct writers are using social media andWeb 2.0 tools to attract and retain customers–your customers. Butyou can engage in the very same tactics they do, spend millionsless and win. Social media and Web 2.0 tools level the playingfield, allowing the small agent to compete head-to-head with thebig companies and, if done properly, come out ahead. If you'reunfamiliar with social media/Web 2.0 tools and how you use them togenerate more personal lines clients, here's a quick overview.Social media, or Web 2.0, are tools you can use to easilycommunicate with prospects and clients. Best of all, these toolsare usually free, easy to use and effective at targeting leads andnurturing client relationships. If used properly, they are greatfor networking, cross selling your existing clients and can even beused as a customer service tool.

Why use Web 2.0?
The Internet has come a long way since it first burst onto thescene in the early 1990s. The tools back then had few practicalbusiness applications. Lately, though, the Internet has come intoits own. We are now in the so-called “second generation” of Webdevelopment and design, or Web 2.0, as it is more commonly called.Without going into a long dissertation on the topic, Web 2.0 aretools that are Web based and open sourced, not desktop or serverbased. This means that new software programs can be designed,developed and quickly implemented, changed and used online insteadof sitting on your desktop, making it easy to access from anywhere,at any time, and at a fraction of the cost of buying software.

LinkedIn, Google, Facebook, Twitter, YouTube, LogMeIn and othersare all, to some degree, Web 2.0 tools that you can use to generatemore leads, streamline the buying process, work remotely and keepmore money in your pocket. There are numerous Web 2.0 tools you canuse. I'm only going to focus on tools with lead generation andclient cross-selling implications. Here are some suggestions toconsider: Revamp your Web site. With all of theWeb 2.0 tools out there nowadays, it's easy to neglect your mostpowerful online tool: your agency Web site. Although it's nottechnically a Web 2.0/social media tool, your Web site should bethe hub of all your marketing efforts, whether online ortraditional. It is the single best tool you have to convey yourbrand image. It should be used as a tool for lead generating, crossselling and customer support. Create a blog. Blogsare a great way to interact with your existing clients. Blogs allowyou to provide topical and relevant insurance information andresources on a regular basis to you clients and prospects. You'reable to receive instant feedback from your readers and engage themin discussions that are relevant to them. You can also use yourblog as a customer support tool with a question-and-answer section.Blogs allow your readers and customers to receive regular updatesfrom you when and if they want them. You can share industryresources and product updates, and the topics are endless. Consideryour blog to be a more timely, interactive newsletter available24/7 to help cement your relationship with clients and prospects.Create a Twitter account. Twitter is a free socialnetworking and micro-blogging service that enables you to send andread other users' updates, known as tweets. Tweets are text-basedposts of up to 140 characters in length that are displayed on theuser's profile page and delivered to other users who havesubscribed to them. First thing you need to do is sign up for afree account, which is easy. Once you create an account, you'll begiven a homepage (mine is at twitter.com/whirlwindmedia), which youcan customize. Insurance companies are now using Twitter as a helpdesk. Geico and State Farm are just two insurers using this as atool to quickly interact with customers. Twitter also can be usedas a lead generation tool. By using the Advanced Search tool(http://search.twitter.com/advanced), you can filter keywordphrases by geographical location, such as your town. This lets youfind people asking questions, complaining and searching forinformation. If you have a solution to their question or problem,tweet them and start a conversation. JoinLinkedIn. If you're not already on LinkedIn, you shouldcreate an account today. LinkedIn is a business-oriented socialnetworking site mainly used for professional networking. It allowsyou to maintain a list of contact details of people you know andtrust in business. The people in your list are called Connections.You can invite anyone to become a connection. To find connections,simply perform a search by name or company name. There are numerousgroups you can join for networking. You can view group memberdiscussions, post your comments and see updates of new people whojoin. Join Facebook. Facebook is a free socialnetworking Web site to connect and interact with other people, orreconnect with lost friends or colleagues. You can join networksorganized by city, workplace, school and region. Facebook is agreat resource for bringing about new sales opportunities.Start a Google AdWords campaign. Millions ofpeople a day use Google's powerful search engine to find productsand services on the Internet. Google Adwords allows you to targetspecific niche markets with precision. AdWords is a powerful onlineadvertising tool that allows you to write small advertisementslinked directly to your Web site. This is a pay-per-click service,meaning when a person clicks on your advertisement, you pay Googlea small fee, depending on the bid price for your keywords. The mosteffective way to use AdWords is to link your ad to a specificlanding page or microsite. These Web pages should be designed withone element only: your call to action–having the prospect obtain aquote. Once you get the hang of AdWords, this can easily turn intoyour most powerful weapon to attract a constant flow of new leads,just like direct writers. There are literally thousands of Web 2.0tools an agency owner can access. The real trick is to find thosewhich work best with your intended goals. Most agency owners aremore concerned with generating leads and cross selling clients. Thetools I discussed will set you on the right path. I recommendtrying a few. See what the results are and keep testing. Web 2.0 isa cost-effective way to attract and retain personal linesclients.

In today's competitive environment, understanding and usingthese tools is key to winning new prospects and keeping yourexisting clients longer. It's a new online world of opportunityavailable to the brave, smart agent who moves first to embrace thistechnology. Will it be you?