Failures are especially costly, because the agency never makes that money back. Therefore, agencies should do everything possible to make sure their producers succeed. The following steps should help.

One at a time: One mistake to avoid is training multiple producers simultaneously. No agency with less than $5 million in annual revenue should be training/developing multiple producers who are at the same stage of development. At best, such an agency may get by with having one first-year producer and another with three or four years of experience-if the agency takes all the steps below.
Testing: Many new producers fail because they are not cut out for the job. According to the "New Producer Profile," published by The National Alliance Research Academy, 53% of new producers cite cold calling as the toughest aspect of their work. In other words, more than half of new producers are reluctant to carry out one of their most important tasks.
Management can assess a candidate's level of call reluctance through testing. With the knowledge gained, management can either hire people who don't have call reluctance or provide training to help those who need to overcome it. (See Behavioral Science Research Press, www.bsrpinc. com, for more information on call reluctance.)
Training: Sales and technical training also increase the odds of success. The days of agencies training new producers on their own are long gone. Occasionally, an agency will succeed in the effort, but such agencies are the exception, not the rule. Give your new producer a fighting chance by providing proper training. You can choose from a number of producer training schools.
Proactive management: Agency management often takes a reactive stance to producer development. In other words, agency managers respond to new producers' problems, questions and requests for assistance. That's fine, but if management interacts proactively with new producers every day, they'll become more successful faster. Set goals together, monitor results, discuss progress and role play. There are many other steps management can take to increase their involvement with new producers and boost their chances for success.

New-producer success is especially important for small agencies, because the cost of developing a new producer is fixed; it does not vary with agency size. In other words, the cost of developing a new producer, as a percentage of agency revenue, is much higher in small agencies than in large ones. Consequently, it is all the more important that small agencies succeed in the effort. An extra $5,000 for training might make the difference between failure and success.

Special Reports /

For The Manager: Be sure to budget for new producers

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