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Producer-Related Issues Two a day Revenue-generating appointments, that is By Michael J. Weinberg There seems to be a question in the minds of many new agents as to the difference between marketing and selling. And that confusion, as often as not, is singularly responsible for many failures by producers. By my definition, marketing is a generic and institutional attempt to make the public aware of your company and/or product. Selling is getting the public to actually buy your product. Too many salespeople confuse the former with the latter. We usually tell our new agents that there are two ways to succeed in the insurance business. You can either cold call a lot of people or you can know a lot of people. Ultimately, cold calling is a burn-out activity. I do not think that new agents can forgo cold calling; however, the sooner an agent builds personal relationships with people who would like to do business with him or her, then the better off the agent is and the more likely he or she is to succeed. And it is here on the road to success than many fail. We ask our new producers to get as involved as possible with trade groups and with worthwhile charitable and social organizations. This is clearly “marketing.” We then ask our agents to get involved on small committees so that they can get to know a few individuals whom they might one day talk to about insurance. This is “selling.” When we interview potential new agents, we tell them that this is the easiest business to stay busy in and accomplish nothing. I know agents who have spent all of their days going to functions, meeting prospects, sending out letters and yet they sell nothing. How can this happen? Easy! Let’s take the case of George, a former agent who once worked for us. George was a good-looking, well-dressed, personable agent. He had a warm smile and Ivy League appearance. He was outgoing and often attended trade functions and networking events. George would even follow up by taking bagels and donuts on a regular basis to the offices and staff of his prospects. If it was Friday, George was there with refreshments. George was also very good at sending out letters. He religiously wrote all of his prospects, often including current events that might affect their business as well as innovative insurance ideas. George’s problem was that he never had the confidence to take the last step and ask for the business or the right to earn the business. In his letters, George would “invite” the clients to call him to talk about insurance which is somewhat akin to inviting someone to call their dentist to schedule a root canal. He just could not bring himself to ask for a sales appointment. While George was a great ambassador for our agency, he sold nothing. Today he is out of the industry. Recently I was talking with another new agent, John, who works in another part of the country, but who happened to call me for advice. John was frustrated. A former company underwriter, he believed that selling insurance would be a snap. He had both the knowledge and the desire to succeed yet was having trouble getting a meaningful sale. As we talked, I learned that John was literally out morning, noon and night meeting people. A friendly sort, he could leave a networking event with several future lunch appointments. He was spending 12 hours a day and countless dollars trying to build a prospect base but with no success at actually selling insurance. Like George, John was not getting to that crucial step. What a tragedy when a producer works hard, meets people, but doesn’t get the sales interview. John had another problem as well. Anxious to make any sale, John was spending time with anyone who would speak with him. So his appointments were often with either a prospect that his agency did not want to write or with a person within the prospect’s company who was not a decision maker. John was a good marketer but a poor salesperson. Another point that we hammer home during the first interview and during virtually every coaching meeting after the agent is on board is that the cash register doesn’t ring until there is a sale. There are no commissions paid for networking events, prospect lunches or for “getting close.” Until there is a sale, there are no commissions and that means that we have no financial justification for paying the agent a draw or training salary after the initially agreed upon period. So, as sales manager, how does one make certain that the new agent is engaged in sales activities and not just marketing? In our case, it is the emphasis on the actual sales appointments. “Two per day” is our mantra. We expect every new producer to have no fewer than two appointments each day during which the agent asks the prospect for a sale. Anything less and there will be no success. Networking events are fine and can lead to sales appointments, but only sales appointments generate revenue. And without revenue, all is meaningless. We also look to the compensation plan to generate and to motivate sales. Our agents’ salaries decrease over a three-year period. The only way to maintain and increase the dollars they take home is by selling insurance. Hopefully the commissions that are paid over and above the base salary will generate sales behavior. If not, and we have a problem agent who appears not to be on the proper sales track, then we will immediately alter his or her pay plan. For these slow performers, we typically will not give them any paycheck until they submit a sale. Sometimes this works; often it merely speeds up the departure process. Either way, we think that we are doing both the agent and the agency a favor by forcing a decision as quickly as possible. The bottom line is to keep producers focused on activities that generate revenues and not just friends. Most new agents in our business fail because they are not properly managed or coached. Every day that passes when an agent is not engaged in sales rather than marketing is a lost day and another step closer to a failed career. Stay on top of your producers—but also be encouraging. Show them the income potential in this business and the opportunities that await them. What other business allows unlimited income opportunities with no capital investment? This is still the greatest business in the world. Good luck in sharing this concept and in motivating your agents to success. * The author |
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