Direct writers spend millions of dollars a year trying to steal your clients, and in most cases they succeed. It's not because your clients don't like you; the real reason is likely due to how easy some direct writers make it for your clients to do business with them. If your agency operates in a state where major direct writers already write insurance, you know firsthand the challenges you face. However, I'm quite sure that most agents fully understand the beast they're competing against. Television commercials are only one way direct writers are winning the battle for your clients. The other, more dangerous tools they use are social media and the Internet. I know what you're thinking: People don't buy insurance online, at least from me. Let me quickly dispel this myth. Celent, a research firm to the financial services industry, recently released a study that projects online insurance sales to double by 2011, and that the Web will play a major role in most personal lines purchases across auto, life and health. To cement this statement, I recently did a search of online spending at KeywordSpy.com, which revealed some startling information. GEICO spends on average $447,666 per day on Google AdWords (a pay-per-click advertising tool which allows you to run ads on Google's search results), generating more than 50,516 clicks a day to its Web site. Progressive spends $436,246 per day, which generates 45,821 clicks. Esurance spends $272,067 per day, generating 39,205 clicks. Direct writers are using social media and Web 2.0 tools to attract and retain customers–your customers. But you can engage in the very same tactics they do, spend millions less and win. Social media and Web 2.0 tools level the playing field, allowing the small agent to compete head-to-head with the big companies and, if done properly, come out ahead. If you're unfamiliar with social media/Web 2.0 tools and how you use them to generate more personal lines clients, here's a quick overview. Social media, or Web 2.0, are tools you can use to easily communicate with prospects and clients. Best of all, these tools are usually free, easy to use and effective at targeting leads and nurturing client relationships. If used properly, they are great for networking, cross selling your existing clients and can even be used as a customer service tool.

Why use Web 2.0?
The Internet has come a long way since it first burst onto the scene in the early 1990s. The tools back then had few practical business applications. Lately, though, the Internet has come into its own. We are now in the so-called “second generation” of Web development and design, or Web 2.0, as it is more commonly called. Without going into a long dissertation on the topic, Web 2.0 are tools that are Web based and open sourced, not desktop or server based. This means that new software programs can be designed, developed and quickly implemented, changed and used online instead of 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 others are all, to some degree, Web 2.0 tools that you can use to generate more leads, streamline the buying process, work remotely and keep more money in your pocket. There are numerous Web 2.0 tools you can use. I'm only going to focus on tools with lead generation and client cross-selling implications. Here are some suggestions to consider: Revamp your Web site. With all of the Web 2.0 tools out there nowadays, it's easy to neglect your most powerful online tool: your agency Web site. Although it's not technically a Web 2.0/social media tool, your Web site should be the hub of all your marketing efforts, whether online or traditional. It is the single best tool you have to convey your brand image. It should be used as a tool for lead generating, cross selling and customer support. Create a blog. Blogs are a great way to interact with your existing clients. Blogs allow you to provide topical and relevant insurance information and resources on a regular basis to you clients and prospects. You're able to receive instant feedback from your readers and engage them in discussions that are relevant to them. You can also use your blog as a customer support tool with a question-and-answer section. Blogs allow your readers and customers to receive regular updates from you when and if they want them. You can share industry resources and product updates, and the topics are endless. Consider your blog to be a more timely, interactive newsletter available 24/7 to help cement your relationship with clients and prospects. Create a Twitter account. Twitter is a free social networking and micro-blogging service that enables you to send and read other users' updates, known as tweets. Tweets are text-based posts of up to 140 characters in length that are displayed on the user's profile page and delivered to other users who have subscribed to them. First thing you need to do is sign up for a free account, which is easy. Once you create an account, you'll be given a homepage (mine is at twitter.com/whirlwindmedia), which you can customize. Insurance companies are now using Twitter as a help desk. Geico and State Farm are just two insurers using this as a tool to quickly interact with customers. Twitter also can be used as a lead generation tool. By using the Advanced Search tool (http://search.twitter.com/advanced), you can filter keyword phrases by geographical location, such as your town. This lets you find people asking questions, complaining and searching for information. If you have a solution to their question or problem, tweet them and start a conversation. Join LinkedIn. If you're not already on LinkedIn, you should create an account today. LinkedIn is a business-oriented social networking site mainly used for professional networking. It allows you to maintain a list of contact details of people you know and trust 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 numerous groups you can join for networking. You can view group member discussions, post your comments and see updates of new people who join. Join Facebook. Facebook is a free social networking Web site to connect and interact with other people, or reconnect with lost friends or colleagues. You can join networks organized by city, workplace, school and region. Facebook is a great resource for bringing about new sales opportunities. Start a Google AdWords campaign. Millions of people a day use Google's powerful search engine to find products and services on the Internet. Google Adwords allows you to target specific niche markets with precision. AdWords is a powerful online advertising tool that allows you to write small advertisements linked directly to your Web site. This is a pay-per-click service, meaning when a person clicks on your advertisement, you pay Google a small fee, depending on the bid price for your keywords. The most effective way to use AdWords is to link your ad to a specific landing page or microsite. These Web pages should be designed with one element only: your call to action–having the prospect obtain a quote. Once you get the hang of AdWords, this can easily turn into your most powerful weapon to attract a constant flow of new leads, just like direct writers. There are literally thousands of Web 2.0 tools an agency owner can access. The real trick is to find those which work best with your intended goals. Most agency owners are more concerned with generating leads and cross selling clients. The tools I discussed will set you on the right path. I recommend trying a few. See what the results are and keep testing. Web 2.0 is a cost-effective way to attract and retain personal lines clients.