Agencies need to seek out new producers that can be exploited for their “ centers of influence .” For example , an agency that has an existing niche or wants to develop that niche should seek out people from that industry , especially salespeople .
A successful salesperson is familiar with the prospect ’ s industry and knows the intricacies involved , understands the special needs of the client and why they may be different from another industry . This salesperson will be more confident and display a higher level of interest in the client and thereby win respect from the client . Also , that new producer might have been a successful salesperson for their prior industry and already have contacts that will prove invaluable to their new employer .
In general , it is often easier to teach an outsider insurance than to teach an insurance expert the technical aspects and unique requirements of a specific trade . These new producers can be paired up with seasoned insurance producers and operate as a team . The new , well-connected producer opens the doors and the skilled insurance producer closes the deal . Of course , the new producer will need to take the time to learn insurance , get licensed and hone insurance sales skills — and this is no easy task .
Look for new opportunities . Recently there have been hits to the high-tech industry . If a firm wants to create or expand a high-tech niche , it is important to seize the moment and take advantage of the current turmoil . High tech may be down , but it is not out . Some high tech salespeople might find the insurance industry a calm , stable environment from their previous employment !
A good selling point to attract salespeople from outside industries is that insurance producers can build up a sizable , renewable book of business in just a few years . The insurance industry is somewhat unique in that the salespeople can make a decent living off renewals and do not have to constantly sell new clients . This might prove to be a pleasant surprise for new producers from other sales positions .
There are still other sources for new producers . Schoolteachers during the summer or even retired people should be tapped into . These sources might have a stable income stream and could be flexible on their sales compensation — namely , on a commission basis rather than a salary .
Look for competitive people such as athletes and coaches . They are also often well connected in the community and don ’ t usually have ways to greatly increase their income . They tend to appreciate and handle the work required for the sales process that culminates in small victories .
A “ sales personality ” and inner drive are the most important aspects to seek out . Insurance can be taught , but teaching a sales attitude is not easy .
Keep in mind that usually young , new producers are selling non-standard auto or life insurance . Their initial attraction to their current job most likely centers on the ability to control their own destiny . The more they sell the more they earn . The need for constant , large volumes of sales , however , tends to burn out otherwise good salespeople . Just like with salespeople from other industries , the steadier aspect of commercial lines and the ability to build a renewal stream in their book of business will make the transition more attractive to them .
Successful young benefits producers most likely will not be interested in changing over to selling commercial lines . This is because their current position is as good as or probably better than what a property / casualty agency could offer . Employee benefits is a growing sector of insurance and the rates keep going up , perhaps 5 % to 10 % each year . Also , once a benefits producer is established , the client base tends to be more stable than many commercial lines accounts .
If you can ’ t beat them , it is better to join them . The formula for many successful agencies is to have a significant portion of their overall revenues from employee benefits . An agency should direct some
20 KANSAS INSURANCE AGENT & BROKER