Marketing isn’t everything. When you’ve got the calls coming in, customers walking in the door, or clients requesting quotes, what’s even more important than advertising and marketing are the following: an effective sales process, customer/client retention, and handling complaints. In this case study, we’re going to be looking at a Dallas/Fort Worth bail bonds review site called TX Bail Bonds. They’ve published a lot of information about how their organization operates, but we’re going to dive deeper. We’re going to be looking at their sales structure and how you can boost the effectiveness of your own business by taking what we’ve learned and applying it in your industry.
In order for you to take this information and add it to your arsenal properly, you’re first going to need to understand how the bail bonds industry works.
How Bail Bonds Work in the Dallas/Ft Worth Area
There are a lot of bonding companies out there, but a common problem for most people is that they don’t know how to go about bailing someone out of jail. They don’t know what bail is. They don’t know what a bond is. Furthermore, most people don’t even know how to locate the person that they’re trying to bond out. They’ll just call every bonding company they have contact information for and hope for the best. Maybe potential customers in your industry are like this as well. You’ll need to educate them just like the review site we are centered on in this article has.
How Bail Works
For centuries, we have been able to pay the jail or court to get out of jail. The intent of bail is to give us the opportunity to secure legal counsel, gather evidence on our behalf, and continue to meet our daily obligations to our community and family, all while promising to keep our future court dates. Several acts in legislation have helped to clear the blurred lines of what a bail-able offense is and how much the bail should be along the way, but one thing has remained constant. A judge has final discretion in granting bail, denying it, and the amount that it should be set at.
After a judge has set bail, a person has the option to pay the full amount directly to the jail or court system, or the person can hire a bail agent. A bail agent (bail bondsman) is someone with the authority to write a bond on someone’s behalf which serves as a legal vouching system for a defendant’s appearance in court.
How Bail Bonds Work
Now that you understand how the idea of bail came about, you also have to know the facts about the types of bond that will release an inmate from jail and how these bonding companies go about writing them. A bail bond is a type of high-risk surety bond, backed by an insurance company, written on behalf of a defendant or inmate currently incarcerated. There are thousands of bonds written every year in the state of Texas alone. The industry is huge and there is a great demand for services throughout the entire United States. As the criminal justice system continues to incarcerate people on drug crimes and minor misdemeanors, jail populations will continue to rise. Therefore, the need for these types of jail release bonds will do the same.
Here’s how a bail bond works. The bail agent gets a call from someone who has a friend or loved on in jail that they would like to get out as soon as possible. The legal system wants some sort of proof that the person will show up for their court date or they’ll just detain them until that time comes. In order to give them something in return for a person’s release, they are willing to take either the full amount of bail, or a bond written on that person’s behalf. They are only willing to receive this bond if there is no flight risk of the inmate. Furthermore, they will only accept the bond if delivered by a bail bondsman licensed to write bonds in that particular jurisdiction. This will either be municipal or county. If the defendant doesn’t show up for court, a warrant will be put out for their immediate capture. In other words, they will become a fugitive. The bonding company will be responsible for paying the full amount of bail to the court. This can range between $1,500 to $100,000 depending on the seriousness of the charges. In order to regain that money, the bonding company will hold the co-signer of the bond liable for “damages,” in this case monetary.
How a Bail Bonding Company Makes Money
After all of this talk regarding high-risk, damages, and hundreds of thousands of dollars, you might ask yourself why anyone would want to start a bail bonds agency in the first place. The risk vs reward might be a little too much for most entrepreneurs, but for a few, it is a great career with many ups and downs. It’s all about managing said risk. That’s how a bail bonds company makes their money.
Managing Risk: Lesson 1 from the Bail Bonds Industry
In any business, there is risk. You constantly have to worry about supply and demand, employee turnover, pay raises and cutbacks, expansion, joint ventures, etc. While these things tend to take up a lot of headspace, the bail bonds industry is very simple. You start with one company in one county which will only require one or two licenses, and learn to identify who your ideal customer is.
You need to come up with an ideal client, an avatar. How much money does this person make? How long have they lived in the area? What are their buying habits? What is their demeanor? In the bail bonding industry, the best companies identified their ideal client within their first few weeks of business. Some had to learn the hard way by paying the court one too many bail forfeitures (their client didn’t show up to court). Just like in a bail bonds company, the risk you take on by being an entrepreneur is what makes the whole venture worthwhile in the first place. Drawing clear lines as to who to take on as a new client and who to pass on will alleviate most of your risk. But what do you do when you have a great deal of perfect customers and not enough resources?
Bite-Sized Expansion: Lesson 2 from the Bail Bonds Industry
For this lesson, we’re going to look back at the company we referred to in the beginning, Tx Bail Bonds. You can look at their website to understand more about how they make their reviews and their opinion on who the best bail bonding companies are in the Dallas/Fort Worth, Texas area. We’re not going to go into that here. What’s more important to us is how they’ve managed to encompass such a vast area. Granted, they aren’t actually writing the bail bonds themselves, they are just listing companies and the contact information. But how did they grow to be so big?
To expand like the bail bonds company, Tx Bail Bonds has, you need to take it one step at a time. If you have what you think is too many customers, just make one more hire at a time. Don’t open up another department. Simply expand what you already have working right now. Obviously you are doing something right if the customers are coming in, but don’t freak out…yet. After you’ve hired and trained someone, take a look at how many more customers/clients you are able to handle. Then, look at the demand. From there, you should be able to get a rough sense of what to do next in the way of expansion. Hire 2 more people? Hire 20 people? Only you will know, but you’ll never be certain. You just have to take manageable actions to meet the demand of your services.
For more resources on bail bonds in Dallas/Ft Worth, visit Tx Bail Bonds. Here’s their contact information:
Tx Bail Bonds
3839 McKinney Avenue Suite 155-2192
Dallas, TX 75204