MarshBerry Producer Recruiting Services A proven process for recruiting, training and developing successful insurance agency producers

MarshBerry Producer Recruiting Services A proven process for recruiting, training and developing successful insurance agency producers

Uniqueness of the Industry Producer Recruiting With millions of American jobs lost in the last two years and no end in sight, many agencies nationwide are wondering why great sales people are not suddenly falling from the sky and into their laps. Setting aside the fallacy that good producers seek agencies in which to fall, it is of course no secret that more diversified sales talent has never lined up at the door of insurance agencies. In fact, if one were to review the content of several thousand online resumes, it would quickly become apparent that insurance sales in general lead the list of forbidden positions by sales professionals, including the unemployed. A general lack of awareness leads the list of culprits. Few outsiders would ever imagine that even an average insurance agency sales person earns a six-digit income (see Figure 1 below). The best earn well into that realm and normally earn the right to enjoy entrepreneurship and therein, average equity nearing two million dollars. The opportunity is clear; the communication is not. $250,000 $200,000 $150,000 $100,000 Figure 1 - Average Producer Pay (Salary and Bonus) per Years of Employment MarshBerry has addressed this dilemma for the past five years by studying the test results of successful producers, the diverse recruiting practices of agencies proficient in hiring and retaining producers, their methods of compensating such individuals and the objections of candidates rejecting these positions. The result is a multi-faceted strategy that identifies what to look for when seeking great candidates, where to find them and the 7 job attributes the most extraordinary of these prospects are seeking. These findings also led to the development of a now proven activity-based compensation plan and training model. These findings and the resulting strategic process has been cautiously implemented during the past four years with phenomenal results. Candidates previously unreachable by insurance agents and brokers are now accessible. $50,000 1 2 3 4 5 6 7 8 9 10 Years of Employment Learn. Improve. Realize. - 1 -

Uniqueness of the MarshBerry Process Figure 2 Seven-Year Odds: People and Perpetuation Producer Success is 2.5 Hires for 1 Keeper (40%) Most recruiters conclude their engagement with the hiring of a candidate. For sure, much has been accomplished at the conclusion of the recruiting process, but for MarshBerry, the majority of the process, if it is really going to be successful, has just begun. Training the candidate to more quickly return the employer s investment and developing this person to the point where they can be gratified with their choice of an employer is, in the experience of this firm, of equal importance. Only one of every 2.5 producers hired will survive through their third year of employment. Only two of 7.5 will qualify someday to become a shareholder by their seventh year of employment (see Figure 2). Those are industry averages that MarshBerry seeks to better. The two most important steps in achieving that goal are: Not hiring someone else s failed producer. If they cannot produce for a competitor, they cannot produce. If they cannot get along there, they will not get along at the next place of employment. If they are a good producer without other problems, their current employer will not let them get away. Exceptions can obviously exist but they defy the odds. Not hiring someone for their proven technical knowledge. At one time it was essential to possess strong industry technical skills, marketing knowledge and sales skills. It is still highly desirable, but larger, multi-faceted agencies with a depth of talent can accommodate or complement technical skills. Too few technicians can learn to sell aggressively and persistently. MarshBerry focuses upon the hiring of proven sales talent. Odds of success can be increased materially if the employer and the recruiter will coordinate a post-employment program designed to mitigate the odds working against the industry as a whole. Retention of new talent in the first year of employment is very important to the employer and to the recruiter, but the longer-term retention of perpetuation candidates is more important to both parties. It is toward this end that MarshBerry has designed a program that will either quickly reverse mistakes or accelerate the candidate on a path to solid citizenship in this agency. Following the employment of every candidate an immediate process begins, which includes: An immediate focus upon prospecting new business A compensation plan that inspires immediate results Pairing the new producer with a Mentor/Closer Implementation of an industry technical training program Implementation of new producer prospecting training Peer group exchange networking program - 2 -

Recruiting Process Stage 1 Pre-Hire Producer Recruiting Develop a Position Profile: MarshBerry will work with the client to develop a profile of this position that will be used to market the industry and the client s firm to potential producer candidates. Once this profile is finished, the client will know how MarshBerry is describing the client s firm and its opportunity to sales professionals. Benchmark Candidate: After the Position Profile outlined above is complete, MarshBerry will begin to market the position in the client s area. Within two weeks the client will be presented with a benchmark candidate to make sure that the client is in agreement on the type of candidates that should be brought in for face-to-face interviews. Compensation Plans: MarshBerry will work with the client to implement a pay/validation structure focused on activity first. This unique compensation plan is designed to reward the winners and quickly weed out the pretenders. Stage 2 The Hiring Process Initial Interview: A MarshBerry Placement Consultant will travel to the client s office to conduct the initial first round of interviews. Any candidate deemed appropriate will be introduced to the client following the visit. Testing: Once a candidate has been properly evaluated and considered to be a potential fit, MarshBerry will facilitate testing to make sure that the personality profile matches that of high performing producers within the MarshBerry Partner Exchange Network Agencies. Stage 3 Post Hire Sales Training: The fee outlined below includes one year of sales training for the new hire and discounted admission to the MarshBerry Producer training events including SalesPro Producer Training. See the following page and back cover for additional details. Candidate Guarantee: Any candidate that leaves the client s firm within the first twelve months for ANY reason will be replaced at no cost. This guarantee is valid as long as the compensation model, technical training, sales training and mentoring process tracks are followed as outlined above. Learn. Improve. Realize. - 3 -

Development Process One Time Mentor meeting During the week of hire or earlier, the person(s) that are acting in the mentor role will meet with the MarshBerry Sales Management Consultant on a conference call. This meeting will be used to discuss the proper use of the activity sheets, weekly calendar sheets, monthly goal sheet and annual goal sheet as well as MarshBerry involvement for the first year. New Producer Insurance Prospecting Training When the new producer is licensed or ready to begin prospecting, whichever comes first, they will meet with the MarshBerry Sales Management Consulting for prospecting training. This will be the producer s first introduction to utilizing his or her current prospecting skills within the insurance industry. This session is also an introduction of the MarshBerry Training Process. Weekly Activity Sheets The producer will be provided with a weekly Activity Sheet used as a tool to track their individual activity for the week. It is required that Weekly activity sheets are turned into MarshBerry and the producer s manager on a weekly basis. If this requirement is not met, MarshBerry reserves the right to remove the producer from the training process and void the one year guarantee. Monthly Monthly Exchange Group Conference Call Review The producer will meet with a member of the MarshBerry Sales Management Consultant team and a group of up to three other new producers on a monthly basis. This meeting will be conducted by conference call and will be used to discuss the weekly activity sheets, month ending goals and future goals. Program Costs Initial Payment: $10,000 Second Payment: $10,000 - Due upon candidate start date - 4 -

Recommended Training Sales Management Producer Training Producer Recruiting SalesPro Producer Training is a series of best practices sales and service training seminars, held semiannually in conjunction with APPEX symposiums and BANK-TASC summits and facilitated by MarshBerry s Sales Management Consulting Team. The program is designed to increase the agency s value and drive producers books by helping individual producers enhance new business production and account retention. Registration fees are discounted for producers placed by MarshBerry. Producers who participate in SalesPro sessions will be exposed to proven sales strategies that will drive book-of-business growth. The techniques taught are focused on best practices information that MarshBerry has accumulated through years of research and working with top producers in the insurance industry. These proven techniques will provide concrete tools for building a large and profitable book-of-business. SalesPro sessions are a must for new producers and for those with stagnant books-of-business who are looking to achieve a higher level of performance. See back cover for further information. Technical Training New Level Partners Online Learning is a new approach to professional development from the Institutes. Insurance professionals cannot afford to have gaps in their technical knowledge. Gaps in knowledge equal gaps in performance. And in this fast-paced and ever-changing industry, those gaps need to be filled quickly. People need timely and easy access to technical insurance knowledge that will help them be more productive and perform at a higher level. The Training You Need, Delivered. Take your learning to a new level with interactive web-based E-Learning modules and tailored Instructor-Led training for your employees or clients. Secure support, maintenance and administration of Learning Management Systems and promotional client education will deliver the training your company needs. New Level Partners aligns closely with their clients to design curricula that accelerate skill and competency development to meet existing and anticipated business demands. Their programs are specifically designed and developed to address the unique needs and challenges of your business. The Commercial Lines program cost is $565 and can be accessed through MB s website. Learn. Improve. Realize. - 5 -

Agency Responsibility Compensation All will agree to a first year compensation plan that is validated based on new business appointments rather than commission. The primary reason most new producer candidates fail is they do not develop a disciplined approach to prospecting. We will work with the client to design a compensation plan for year one that is based on the one thing a new producer can control - New Business Appointments. Assign a Closer Pair the new producer with a senior producer that will accompany him or her on new business appointments. This business is considered co-produced and commissions split accordingly. This is how to hedge a bet on those that wash out. If they set appointments, someone else will turn those into revenue. If they do not, then based on the compensation plan outlined above, their pay will be decreased. Develop a Prospecting List Is it big enough? Do we have a market? Do we have any expertise? Sales Management Made Easy 1. Weekly Meeting To Discuss Week Ending Activity Sheet Next Weeks Prospecting Time To Be Blocked 2. Monthly Meeting To Discuss Month End Review Of Goals Next Month s Bite of Annual Goals Year-to-Date Progress On Annual Goals Questions regarding the program can be directed to: Art Betancourt: 903-526-3206 / Art@MarshBerry.com Marsh, Berry & Company, Inc. 455 Wilson Avenue SW, Suite 3A Grandville, MI 49418 Phone: 903-526-3206 www.marshberry.com - 6 -

Producer Data Number of Hires 100 Average Producer Age 33 Average 1st Year Revenue (Employed $46,988 1 Year or More) Average 2nd Year Revenue $56,033 Average 3rd Year Revenue $85,493 Average Starting Salary $55,101 Producer Retention Rate 71% MarshBerry Sales Management presents: SalesPro Producer Training SalesPro is a series of best practices sales training seminars facilitated by MarshBerry s sales management consulting team. The program topics are designed solely to help producers drive book growth through enhanced new business production and account retention. Anchor sessions are: Sessions run in the Spring and Fall. Date announcements and registration can be found at PeerNetworks.MarshBerry.com. Sales Training To Create High-Performing Producers Time Management - Effectively manage capacity with specific time management techniques based on book-of-business revenue streams Sales Strategies of High-Growth Agencies - Build and implement proven sales strategies and methodologies used by high-growth agencies Selling to the Clients Perceived Value - Know what subjects to chase based on differentiation and value proposition strike zones Win/Win Selling - Build successful joint business relationships with decision makers and spheres of influence Consistently Closing Sales - Develop continual and consistent high-hitting business opportunities Successful Prospecting Techniques Setting new business appointments - Effectively identify and target new business relationships through a forecasted selling system Sales layering Constantly position the client for a win/win Introductions vs. referrals Move quickly through the sales process to become a trusted advisor The 5 steps to leveraged prospecting Engage relationships to effectively and confidently build new business opportunities Concrete deliverables to support the sales process Tools for building a and maintaining a consistent sales process A structured time management plan - Create time for consistent weekly prospecting Developing a strategic plan - Work as effectively as possible over any 90- day period Marsh, Berry & Company, Inc. 455 Wilson Avenue SW, Suite 3A / Grandville, MI 49418 Phone: 903-526-3206 / www.marshberry.com