"Strictly Sales" is written by the faculty of the Dynamics ofSelling program. This month's column is from Tom Barrett, CIC,AAI.

AS MANY agencies begin dealing with a softening market, theyfocus on keeping their annual written premium at its current level,even if renewal premiums decrease. The following steps will helpensure your agency develops the fundamental processes needed toreach its goals.

1) First, know your numbers:

• What is your hit ratio?
• What is your average commission per account on newbusiness?
• What is your commission per account on renewal business? Hasthis number gradually increased over the last five years?
• How many days are available for sales?
• What are you spending to acquire a new account?
• What can you do to change the numbers?

These basic numbers tell you where you are and what you need todo to change things. If you start pre-qualifying, and not justqualifying, your average commission should increase, and yourclosing ratio should be north of 75%.

2) Focus on how many days you have available for selling. Manyproducers say they don't have time to get out and make sales calls.They may be spending too much of their valuable time on servicingtasks, even though they have professional staff that can performthe work better than they can.

Look at it this way: You start out with 365 days available forselling. Subtract 10 vacation days, 12 personal or sick days, 10company holidays and 104 weekend days, and you still have 199 salesdays left. If you spend three days a week servicing clients, that's150 more days gone, leaving you with only 49 selling days.

Say you have an income growth target of $75,000, a closing ratioof 25% and an average commission per account of $1,000. You need 75new accounts to reach your target, which means (at your 25% closeratio) you must make 300 presentations. With 49 days for selling,you have to make 6.12 presentations per day to reach your target.Plug your own numbers in here and see how you come out.

Determine your 2005 commission income goals for both renewalsand new business. Divide it by your average commission per sale toget the number of new accounts you plan to write. Divide by yourtargeted closing ratio, and you can determine how manypresentations you have to make to reach your goals. By walkingthrough this exercise, you'll see right away if you are on track toaccomplishing your goal. By the time you read this column, the yearwill be 30% gone. Are you at 30% of your 2005 goal?

3) Identify your top 10 or 20 current accounts (your "A" list)and estimate the chance of renewing each one. For any that scoreless than 85%, immediately begin working with them to enhance yourrelationship. Consider following a specific commercial-linesrenewal review process. This will include renewal review meetingsand using questionnaires to find out how you are performing and toidentify any problems.

Visit the "A" accounts three times during the year, plus therenewal visit. Visit the "B" accounts two times plus the renewalvisit. Visit the "C" accounts only at renewal and mid-year. Get ridof the "D" accounts (service problems, claims problems-those thatcost you profit-sharing money). Review your results monthly.

4) Take each account from your "A" list and create another listof no fewer than 10 prospect names that you can place under eachaccount. If you have 10 "A" accounts and list 10 referrals fromeach, you'll have 100 prospects. Work these referrals diligently.For each of these prospects, list the account name, number ofemployees, potential commission, relationship with your currentclient, objectives in meeting and a deadline to have your currentclient make an introduction. Focus on developing relationships withyour top 20 prospects and make sure they are "touched" at leastonce a month.

5) Identify the top five centers of influence in your community.You should meet each of these individuals at least once a quarter.Developing strong relationships with these players helps you openthe doors of opportunity.

6) Pursue self-improvement. Become active in professionaldevelopment programs. Attend a sales training course and develop anorganized sales process that involves super-qualifying prospectsand presenting solutions rather than selling on price. Work towardearning a professional designation such as the CIC, AAI orCPCU.

Thirty percent of your 2005 opportunity time is now behind you.Have you reviewed where you are and made the changes necessary tomake 2005 a success? Remember, it's up to you, and your competitoris betting you'll get lazy so he can take your business away. Everytop-10 client is also a top-10 prospect for someone else, so takethis seriously.

Good selling!

Tom Barrett is president of the Midwest and Southeast regions ofSIAA Inc., a partnering of more than 1,675 agencies. Tom alsoserves on the national faculty for Dynamics of Selling, Marketing& Sales Ruble Seminars and Mega Ruble Seminars for the NationalAlliance for Insurance Education & Research. For moreinformation, call (800) 633-2165 or visit www.TheNationalAlliance.com.