Questions from a new guy

[new2independent]

Hi everyone. I am new to the independent side of the insurance industry. I worked 2 years as a CSR for Liberty Mutual and 2 years as a sales rep as Liberty in MA. I was highly successful at both jobs. In mid October I took a producer position at a local agency. The agency is located 5 minutes from my home but I am the only producer in my office. The agency has two other locations.

My first week selling I produced 5 policies followed by 4 then 0 then 1. My boss spoke to me and said he was concerned and is there anything he can do for me. I am pounding the phones and stopping by mortgage brokers and am becoming active in my local chamber of commerce. I knew when I took the job that things wouldn't come as easy as being with a captive as I would have to develop all of the business myself. I also thought I would have a little bit more time before feeling pressure at my new employment. Is this normal?

Also do you have any advice for a new guy starting out on the independent side in MA? Any and all responses will be greatly appreciated.

Thanks.

[new2independent]

Does anyone have a comment?

[InsMgmt]

New Guy,

You need to be patient with the forum, your production numbers, and your boss. Your initial post was after 4 PM on a Friday - folks are headin' out for the weekend. As for me, I'm watching a slow Saturday evening pass by, decided to jump on the web, and happened upon your posting. I'm guessing that a fair number of the forum members read these posts during the work week. As for your production numbers, dedicate time everyday towards your short, mid, and long-term goals. The numbers will improve over time and you will begin to see consistent production.

As for your boss, surely he isn't new to the business and must have half a clue about sales production, so sit down with him and get his take on your situation. He will have a better appreciation of your efforts and progress if you will start turning in production numbers (calls made/contacts established/appointments scheduled/appointments made/proposals presented/new accounts written). A comprehensive report will show your boss that you are working to fill your prospect funnel, and, if he does indeed have a clue about sales production, then he will appreciate just how good or poor your performance really is. You may also want to schedule sales meetings every Monday morning with your boss to turn in your sales figures and discuss your plans for the upcoming week. Be sure to ask your boss about the accounts you are targeting to see if he might know someone within the targeted company or what he knows about the company. He may be able to open doors or lead you away from a difficult account.

I would suggest that you get up with the Big-I in your state and ask about their Associate in Production (AIP) program. This is affordable, yet effective, sales training for commercial producers.

Good luck!

[prezzoo]

As a young producer who has worked both at a national agency and a regional agency I can say from experience that you are in a tough position. Recently the Magazine "Rough Notes" had an article about one of the most effective agencies that brings on new producers each year. I don't recall when it came out(with the last few months, call RN, they'll know) but I know I know they interviewed Bolton and Associates here in Southern CA. The Sales Manager at Bolton said it normally takes a year and a half to 2 years for a producer to pay for themselves.

Your boss can't expect you to make huge bucks pounding the phone book. Making cold calls is a horrid way to get new business. Anyone with an account worth having will have some form of relationship with their current agent and not want to go through the hassle of shopping. Anyone who lets you quote them will probably quote you the next year.

What I've seen is that most "successful" producers were people who happened to be at the right place at the right time and now just maintain those books. This agency may not be the place for you if they don't understand that books don't come out of thin air. What I would recommend is finding an agency that has 5-10 million in revenue that will be willing to start you off with something like a 25-35k salary and commission. Look for one that is selling benefits, that is helping some agencies stay above water revenue wise. Most agencies want to hire young producers. When I switched agencies I only had 8 months experience but multiple agencies said yes when I asked to come interview for a producer position. In hindsight I have no idea why they would even consider me. You have enough experience find a job at a lot of agencies. You are a value asset. Maybe you should have a heart to heart with your boss (and call some other agencies to see about positions).

Sorry I'm a poor writer - hopefully this makes sense. We've been(and are) in the same boat.

[new2independent]

Thank you both for the advice. I was just looking for a little more patience from my boss. I will have 7 to turn in next week so that may get him off of my back. I knew going in that I would not produce consistently in the first month. If anyone else has advice, it is greatly appreciated.

[InsMgmt]

Off your back?! You have got to be kidding us.

This is the agency principal, who is investing his resources in you in hopes that you will bring in business. You need to show him what you are doing on a weekly basis to satisfy his need for assurances. Deal with it.

[SEANMYERS]

Ditto to the guy who took exception to "get off my back" statement from Mr Ungrateful ....it's amazing how in 13 yrs in this business the sense of entitlement most employees have projected is uncanny. You give an opportunity and they want a handout. When I started in this business I got the same opportunity I have offered numerous "agents" through the years except that I ran with it and the rest is history......many young people nowadays expect something for nothing....wish I knew how that worked?

[Shagster12]

New Guy,
I understand your comment about getting your boss off your back... More appropriately where you need him is in a sup-portive position.
Agency principles, don't get ruffled here as my comments are in support of a new producer looking for support, but you'll get young producers into a much stronger growth and production mode by supporting and teaching them rather than demanding immediate success. My first real production position came with a boss whose regular question of me during contact was "Are you making me money today or costing me money?", and while the message is certainly clear, I can tell you that it is a sure fire way of intimidating a young producer right into failing you, when it would be just as simple and a hundred times more effective to ask "How can I help you make us both more money today!"
This is the situation I now find myself in, and I have proven to be immensely more successful when supported rather than intimidated...

So new guy you're on the right track, and so are many of the comments and advice here. Continue to work your tail off and do not be afraid to 'share' your efforts with your boss on a regular basis, weekly meetings is a great idea and excellent way to not only show your efforts but also to solicit advice from someone who's likely been where you are in order to help you get to where he is, which should be HIS goal. After all, that's how he'll make the best money, by helping you succeed! And if this does not seem to be his goal, he's probably running a 'revolving door' shop, where he'll bring on producers who write some business for him and shortly burn or blow them out by his attitude. While he gets to keep the business and continues to build his book off of your efforts. Be very careful of this situation!
And if this person did not build their business themselves but inherited it as many have, you should seriously consider scouting for better options, as you'll not likely learn much in this situation and will eventually be pushed into a corner with very few tenable options by someone who doesn't have a clue how to really produce business and succeed on their own!

I wish you the best and leave you with this thought..."Some men see things as they are and say "Why?" I dream things that never were, and say, "Why not?" George Bernard Shaw

[earlybird]

If yoy are under 35 years old, seach out the Jaycees, join and get active! Networking will produce. If too old for that group, join the Kiwanis Club,Lions Club, Ruritans, or some other very active group in your community. In this season you can wear your company logo hat and go ring the bell for the Salvation Army! All of the above will get exposure and appreciation from the community in which you live. Keep a log (daily timer) with all of your activities, as well as appointments. If there is an existing book of business, look for ways to add coverages (round out the account). Take any free continuing education courses offered by wholesalers, even if you dont need the CE hours. Learn your competition and see what their niches are. There are a lot of activities that you can participate in that will create sales opportunities for you. Good luck doesnt just happen, it is the result of effort!

[new2independent]

Thanks again for the continued advice. I was not aware of the Jaycees and will be contacting them tomorrow. InsMgmt, please understand the"get off my back" comment was due to my boss confronting me within my first month of selling for an agency. I agree with the point about taking an oppurtunity and running with it. I have run with oppurtunities before in my career and maybe the prior post made by me sounds like I am complaining.

If anyone else has any ideas, I am always willing to listen.

Thanks!

[SEANMYERS]

sorry to "new guy" for getting on your case but I'm somewhat sensitive as I have been that encouraging agency owner
sincerely trying to offer the same opportunity I got way back when. What I've found is that most employees I've hired in the past and also most recently have not appreciated my time, effort & expense offered in helping them achieve their own level of financial security. I've offered them all a 50/50 split, new & renewal with no office expense incurred on their side.
Still this was not enough to entice anyone to get off their ass. Anyway enough said....

[kevinraz]

When I got started in the biz I was with Farmers. It took me a month to produce my first policy! By six months I thought I was doing well writing 2-3 policies a week. After three years I had one week where I wrote something like 22 policies, however my usual monthly average was about 20-30 policies on about a dozen new households. That was a great week - every call I went on said "yes" but it took a lot of time and practice and referrals to get there.

Even with your experience it's going to take time. Six months minimum, more like a year. Take all the advice you see here about activities and I'll second that cold calling is rough but x-dating might still be a viable way to go after business.

Agency principals, you do have to make sure that your newbies are working but you also have to give them room and support. I think most fail as a producer because they are unwilling to do the work that gets them to the sale - x-dating, calls, asking for referrals, etc - but it also does not help when you hound them and pack on the pressure from the start. One agency I was with was absolutely brutal on their producers with the stress, now most of the producers have moved to another agency.

[ED3771316]

Most agency principles are type A Personalaties (high strung and impatient). When he asks if there is something he can do, he means he wants to help. His delivery may be off on the offer because he does not suggar coat it.

Look past the "rude Delivery" and pick his brain.

Join a networking group. Try http://www.bni.com.

Just keep plugging away. Nothing comes easy.

[gregcw]

Like one of the other posts here, I started out life with Farmers. I also had GI bill education benefits. Since, as the agency principal for an encumbered agency, I felt that I needed to learn about running business I took as many courses as our local community college offered. The distict manager wasn't able to teach me a lot about running a business.

My district manager "MANGLER" also didn't do a lot about teaching me to sell other than "Dialing For Dollars". Since your not the principal some of the business courses I took might not be beneficial, initially, although they would help in risk analysis for commercial prospects, some of the courses that I was able to take in the business division included Marketing, Advertising and Principles of Salesmanship. There were some very good things said in other posts about making the community aware of you (marketing and advertising) with the primary thing to remember is to ASK for the business in addition to knowing your product and how will benefit them (SALESMANSHIP)

[Knotins]

New Guy,

I too came from the origins of a captive insurer Farm Bureau and actually started a sctratch agency 9 years ago that has grown into a succesful business. I found that production was much easier in the independent system and the answer is simple, choices for you clients that did not exist before. It does not grow over nite and it requires repetition and persistency, just stick to it and it will happen. This is a tough market climate to grow in but it can be done.