Lessons Learned from Top New Producers. By Kenneth L. Fields, CIC, CPCU, CLU, ChFC, MSM

Transcription

1 Lessons Learned from Top New Producers By Kenneth L. Fields, CIC, CPCU, CLU, ChFC, MSM My partner and I have had the privilege of working closely with more than 1,300 new property and casualty insurance producers over the past 16 years. In each case we carefully documented their prospecting and sales activities for a year or more during scheduled 30-minute weekly phone coaching sessions. A few of these producers are extremely successful, some learned they were not a good fit for the business, and most are methodically building lucrative insurance careers. This, in an industry where some experts say two thirds of the new entrants don t survive to the second year. Agency owners sometimes complain that they just can t find young people who want to work hard. (Our top producer of the past 16 years was just six months out of graduate school, single, still living at home with his parents.) Or they excuse the lack of new blood in the agency with, My agency is located out in the country. We don t have enough business to sustain a new producer. (One of our top producers is located in Attica, Kansas, population 626.) Or they refuse to give an opportunity to an internal candidate by saying, She s been a CSR for years; I don t see how she could make the transition. (Another of our top producers, a single parent and grandmother of two, was a CSR for 20 years.) Our top producers are male and female, young and old, experienced and inexperienced, from all parts of the country urban, suburban, and rural. We are often questioned about the differences we ve observed between those producers who make it, those who don t, and those who become rising stars.

2 What it is about these top producers that set them apart from the others? Here are the Cliffs Notes from what we ve learned over the past 16 years: Lesson 1 - Top producers work very hard. Recently, one of the network morning shows had as its guest an author who complained that an increasing number of people are working more than 40 hours per week, and that somehow was a bad thing. The two network interviewers were raging overachievers who probably work 60-hour weeks themselves, so they were less than receptive to his argument. They know it s not possible to get to the top of any business, show business or the insurance business, working 40 hours per week. We ve all heard that we should Work smarter, not harder. But successful producers work smarter and harder. A large banner hangs in the front of our training room that reads: Sell all day, app all night. Our top producers get it. Lesson 2 - Top producers know how to manage their time. It s not enough to work hard; hard work has to be focused on the right behavior. Years ago I heard motivational speaker Bob Proctor suggest that in order to better manage our time we should apply the following standard to everything we do: 1) Is what I am doing now moving me closer to a business or professional goal? 2) Is what I am doing now moving me closer to a personal goal? 3) Is what I am doing now fun? 4) If the answer to all three questions is no, then Why, Proctor asks, are you doing it? Top producers seem to understand clearly which activities move them toward their business and personal goals. And they take time to have fun, as well. In fact, they seem to have fun while they are accomplishing their goals. Surprisingly, according to industry surveys, it s not the lack of sales skills that is the downfall of many producers; it is the inability to manage their time. Top producers seem to be hard wired with effective time management skills.

3 Another important part of time management is knowing when to walk away from an account. Top producers don t allow themselves to be used as quoting machines for prospects who bid out their insurance every year. They refuse to be the honesty police to make sure the incumbent agent has done his job, and they refuse to do business with prospects that won t provide all the information needed to do a good job or who want to communicate through a subordinate or other third party. Lesson 3 - Top producers stay out of the office. The mantra of one top producer is to never be in the office during business hours. He does administrative work before the agency opens or after it closes. Meetings with agency personnel are scheduled just like appointments with prospects and clients. Similarly, discussions with underwriters are scheduled via . This allows him to maximize prospecting and selling time. His goal is to be out of the office calling on prospects and clients 70% - 80% of the week. Lesson 4 - Top producers are motivated from within. These individuals don t require constant attention on the part of the sales manager. And they don t wait to be told what to do. This is sometimes called being a self-starter. Psychologists call it intrinsic motivation. However, don t be fooled into thinking these producers don t require positive reinforcement from the agency owner or sales manager. These superstars thrive on positive feedback and may look for it elsewhere if they re not getting it now. Lesson 5 - Top producers are likeable. Motivational speaker Jeffrey Gitomer says people like to do business with people they like. Likable people tend to focus attention on others, rather than themselves. It s obvious they like people. It feels good to be around them. They go out of their way to help their prospects and clients, not just to get the sale, but out of genuine concern.

4 New Producer Myths Myth #1 I ll have to sacrifice family time if I want to be really successful. One of the huge benefits of this business is the flexibility producers have over their working hours. There is no reason to ever miss an important event in the life of your child or spouse since you control your own schedule. It is all about managing time. Scheduling your daughter s dance recital or your son s band concert is no different than scheduling an appointment with a client. Myth #2 I can write a lot of business on the golf course. We ve worked closely with hundreds of producers, new and experienced, for over 15 years. Little, if any, of the more than ¼ billion dollars premium written by the producers we ve coached resulted from relationships developed on the golf course. There may be agents who write a significant amount of business directly related to playing golf, but we haven t seen it. On the other hand, lots of insurance agents like to play golf, often to the detriment of their sales success. There s certainly nothing wrong with playing golf, but let s keep it real. (See Lesson 2) Myth #3 Cold calling is a waste of time. This one seems to be a current favorite of some sales consultants. There are many advantages of pursuing referral business, no question about that, and we do everything we can to move producers in that direction. But most new producers don t have a large enough network of friends and acquaintances to sustain an adequate flow of new business solely from referrals. And even established producers frequently need an infusion of new prospects that can only come from developing new (cold) prospects.

5 Kenneth L. Fields, CIC, CPCU, CLU, ChFC, MSM Ken is an Assistant Vice President with The State Auto Insurance Companies. Co-developer of the nationally recognized PaceSetter new producer sales development program, Ken has been personal coach to over 1,300 new property-casualty producers. He is also on the national faculty for the National Alliance. For information on The National Alliance for Insurance Education & Research and their Dynamics of Selling program and Producer School, call or go to: