 |
 |
 |
THE CHANGING FACE OF THE INDEPENDENT AGENT Launching a career If Joel Geddes' short insurance history is an indicator, the future looks very bright By Elaine Tolen Joel Geddes III is no stranger to hard work and high goals. During college, he worked full time while earning a business degree in economics at the University of Arizona in Tucson. In addition to other summer jobs during those college years, he worked four summers as an intern at Capax-Giddings, Corby, Hynes (GCH), the largest agency in the Modesto, California, area. And in July, with just five years of full-time insurance experience under his belt, Joel will begin serving as chairman of the Insurance Brokers & Agents (IBA) of the West Young Agents Committee and next year as president of the local IBA West-affiliated chapter. So it’s no surprise that this 27-year-old’s 10-year goal is to bring in $1 million in revenue. Gaining experience Joel grew up in Modesto, the heart of California’s farm country which grows most of the United States’ produce. “Being a farming community, not as many kids go directly to college,” Joel says. But Joel not only went to college, taking a full load of classes in the morning and afternoon, he also worked full time as an assistant manager at Checker Auto Parts in the afternoon and closing shifts. “I like to do things for myself,” Joel says about his drive and work ethic. After his freshman year of college in the summer of 1998, Joel worked as a lifeguard and swim coach in addition to doing his first internship at Capax-Giddings, Corby, Hynes, where his father is CEO. Joel’s grandfather, Joel Geddes Sr., also worked in the industry, beginning his career in the 1930s at Aetna. “Even though you grow up around the business,” Joel muses, “most people think, ‘I’ll never do that.’” And as the saying goes, “Never say never.” During that internship, Joel worked in the agency’s accounting department, then as a customer service assistant. Besides working with clients, he learned how to use the agency’s management system. In 1999, during his second internship, Joel got to work in two of GCH’s national programs. The first one, called Frame It℠, includes 3,500-4,000 art and framing retail, wholesale and manufacturing businesses in 46 states. Joel did telemarketing, made calls to get X-dates, and went to trade shows. The other national program, Marry Me℠, for the wedding retail and formal wear industry, was in its infancy at the time. Joel did early corporate development with GCH attorneys, creating trademarks, and a new industry association. During this internship, Joel also purchased marketing lists, scrubbing and uploading them into Gold Mine, a contact management program used throughout the agency for marketing. After this second summer at GCH, Joel began attending job fairs around the University of Arizona campus, researching various business-related career paths. “After listening to recruiters describe different jobs and comparing those to the income prospects and quality of life in the insurance industry, insurance became a very feasible avenue,” Joel smiles. So besides continuing to get X-dates and telemarketing Frame It, Joel obtained his insurance license during the third summer internship. Before college graduation in 2001, he did a fourth summer internship during which he started selling both Frame It and Marry Me insurance policies. “By that time, I had decided that I definitely wanted to go into insurance. Rather than go directly into an agency, though, my dad and several industry veterans advised me to cut my teeth elsewhere,” Joel says. So in 2002 Joel landed a claims job with Safeco near San Francisco as an in-house liability adjuster, then as a property field damage adjuster for auto, commercial and commercial auto, commuting 80 miles each way through the Bay Area. The next year, he was accepted into a Safeco leadership program, which develops non-management personnel with the goal of moving them into a management position. Career move In December 2003, Joel had the opportunity to join Capax-Giddings, Corby, Hynes, in its Marine Providers division. For about 10 months, he trained with Marine Providers President Barbara Galgiani. “Marine risks are sure different from other risks,” says Joel. “For example, you are dealing with the Longshore Harbor & Workers Compensation Act as well as different types of operations such as vessels on the water.” GCH’s marine clients are located all across California, so Joel and Barbara traveled quite a bit to call on customers. “Barbara encouraged me to cold-call—walk into neighboring marine businesses and ask for the firm’s decision maker. She also taught me how to look for proper risks,” Joel explains. “Before we went into an area, I would research prospects in the same ZIP code as the client. We figured since we were already there, we should make the most of our time. I’d call and tell the prospect that I’d be in the area and ask if I could drop by for a few minutes. When I stopped by they’d at least take my card. “I was pleasantly surprised that in this world of ‘no solicitation’ most of the time the person in charge would meet with me. We generated a fair amount of marine business this way,” he says. A retirement in the agency’s small business unit, Premier Business Services, provided an opening for Joel to move there, help develop the unit, and cut his teeth with local commercial business. He took over some of the retiring employee’s book and generated new business. In the first full year he was the third highest new business producer out of 12 in the agency. During this time, he also kept his hand in the marine division, cold-calling in person and on the phone. Continuing to gain experience in various areas of the agency, Joel joined the Commercial Division (over $3,500 in annual commission) last year. Most of his small business clients stayed behind, but Joel was able to bring over several clients who met the division’s qualifications. He also obtained some clients from the other producer whose retirement created the opening for Joel. Creating a brand In addition to the challenges that agents are facing around the country due to the soft market, certain challenges always seem bigger in California. One of those areas, according to Joel, is workers comp. “Rates are down almost 50%. To maintain revenues we have to add new business,” he says. “The agency is growing in a down market, though, so that’s good news.” All agency producers have the Certified Workers Compensation Advisor designation, and workers comp is one of the agency’s specialties. “We view workers comp not as a commodity to be sold, but as a tool to get clients to buy into other services,” Joel says. Joel’s book of business covers a variety of markets, including marine, contractors, petroleum and television stations. Most are located in the Central Valley area. While much of his new business comes from referrals, he still does cold-calling on businesses that qualify for the Pacific Purchasing Group, an exclusive fully insured purchasing group, founded by Capax that is part of the large commercial division. “I call and ask for 20 minutes of their time,” Joel explains. “In that first meeting, I don’t try to sell products or services. It’s very low key. I just want to talk on a conversational level about business, not insurance.” Joel finds that most prospects are willing to give him a few minutes of their day. “Even though Modesto is a good size—population of more than 250,000—it has a small-town atmosphere. Potential customers may have done business with the same agent for many years, so getting them to move takes time. “Fortunately we’ve found ways to differentiate ourselves from other agencies,” continues Joel. The previously mentioned purchasing group through the Simon Companies provides a fraud investigation unit with nurses on staff to review workers comp claims. A full-time loss control specialist assists clients with loss control and OSHA intervention. Other services include developing disaster preparedness plans—important especially in California—that can be 21 pages to 200 pages long. GCH also provides human resource services, such as employee handbook review, employee benefits review and surveys “to help employers be creative in funding employee benefits,” he says. “Employment practices liability lawsuits, including lawsuits about overtime issues, seem to be growing in California,” according to Joel, “so we help clients to prevent these situations by developing proper internal procedures.” The agency’s agricultural division, AG Providers, is understandably big and covers all types of ag-related risks, from wholesalers to nurseries to food processing plants and labor contractors. “All of these products and services help us brand the agency in the agricultural community,” explains Joel. It’s all about relationships While an agency has to have good products and services to meet clients’ varied needs, it takes a good salesperson to market those wares. A good salesperson, according to Joel, has passion and a good work ethic, and looks for ways to self-improve and expand professional relationships. Joel says his involvement in IBA West (Insurance Brokers & Agents of the West) has given him access to top executives at leading insurance companies. “Through IBA West Young Brokers & Agents I have been able to develop these relationships and build continued support for our industry association.” Shortly after joining GCH, Joel attended his first industry meeting, the Young Brokers & Agents Conference sponsored by IBA West young agents during which he got to know members of the IBA West Young Agents Committee. “Then a few months later I got a call asking if I would serve on the board,” Joel remembers. During his board tenure, Joel has been instrumental in helping improve some aspects of the California young agents program. “We’ve emphasized the political process more,” he says. “For instance, we recently sponsored a Political Summit Day in Sacramento for young agents, which included training on how to get involved in the political process. We toured the capitol and spoke with several state legislators, including state Senator Dave Cox and newly elected Assemblyman Ted Gaines, who is a fellow insurance agent, about industry issues. “We also have strong participation by young agents within our in-district meetings, which are local meetings with state senators and representatives,” Joel continues. “A young agent is paired with other experienced agents in their district to meet with local law makers. “I love politics,” Joel admits. “Our industry is changing rapidly—especially here in California. Our insurance careers aren’t going to be the same as our parents’, and we need to speak up and be part of the process that will govern the industry’s future.” As IBA West YBA vice-chairperson last year (Joel will become chairperson in July of this year), “I have been part of a committee that has made some great changes to the annual conference program, such as adding a producer development track. Nationally, most conferences have seen a decrease in attendance, so we interviewed agency owners and wholesalers to find out what would motivate them to send young producers to a conference like ours. They said that there are so many in-house programs that offer CE courses that we should offer something different like an emphasis upon sales training. “So this year begins our three-year certification program—the producer development track,” Joel explains. “After the third year we will offer all three levels or ‘years’ so a producer can start anytime. We modeled it around the National Alliance Dynamics of Selling course and the program includes practical training like how to generate appointments, using company proposals, and a mentor panel discussion. However, at the same time we do still offer CE credit courses.” The YBA Committee is also stepping up efforts to develop its membership, according to Joel. “We’re calling state association members to identify young agents in each office. And to grow our ‘community’ within the young agents group, we just developed a Young Agents Network available through our new Web site at www.ybac.net.” Time management Outside of his professional commitments, Joel is active in the community and particularly enjoys his involvement in Rotary Club. “It’s fun to be part of a group that is giving back to the world,” he says. Local projects have included feeding the homeless and turning railroad property into parks. One of Joel’s most rewarding projects has been the club’s aid to a Romanian orphanage in which Rotary (through a Rotary International grant) helped build a farm for the orphanage to generate income, provided a dairy plant, a transformer to generate electricity, as well as cows, hogs and chickens so that the orphanage can be self-supporting. And how does Joel juggle all of his industry involvements, community work and job responsibilities? “I live off of my PDA,” he laughs. “Seriously, if you want to be the best and are ambitious, you schedule around the client’s schedule, not yours. You meet outside of normal business hours when it’s convenient for them.” That doesn’t mean, however, that one’s personal life is sacrificed on the altar of success. While Joel is strategically flexible for clients and prospects, he has found that scheduling personal time is important to a healthy and successful career. “I try to block out weekends as personal time,” Joel says. “I need those two days to reconnect.” Part of that reconnecting is spending time with his college sweetheart and wife, Jessica, who is a senior casualty claims adjuster for Allstate. Keys to success Joel’s short but successful career is characterized by ambition, zeal and plain ol’ hard work. “I want to be the best,” he admits. “So many people in my generation come to work just for a paycheck. . . . To be successful, you have to be passionate about learning about customers and helping them with the services your agency offers. Get involved in your customers’ lives, find common ground on which to build relationships. “You also shouldn’t believe that insurance is a stepping stone to something else. It’s a career,” Joel continues. “You have the flexibility to be as successful as you want, depending on how much time and energy you’re willing to invest. I have seen successful agents work really hard for seven to ten years, then coast and enjoy the fruits of their labor for the next 20 years. “Or you might work hard to be top dog, that’s what I want to be,” he states. Not only is Joel Geddes quickly heading towards the head of the pack, he has successfully launched a career that is moving him towards making his $1 million revenue in 10 years goal a reality. * |
|
||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
