oSales-driven agencies set goals. They ask their producers not only for their revenue goals but also how they plan to attain them. The producers are required to prepare detailed sales plans in which, among other things, they spell out the strategies they will use and any resources they'll require.
oSales-driven agencies provide marketing support. Good sales managers can get more out of producers, just because of the support, recognition and motivation they provide. But sales-driven agencies go beyond that and provide marketing materials and campaigns. Marketing campaigns often lack structure and discipline and so can be hit or miss. Sales-driven agencies identify their target accounts. They pinpoint the decision-makers and determine how best to approach them. Some use seminars effectively; others use testimonials. They may take a "tag-team" approach, involving multiple producers or other people who can help the agency make a good impression and get a foot in the door.
oSales-driven agencies require producers to shed small accounts. They run the numbers on their producers' books annually, if not more often. They require producers to shed accounts smaller than a given size. They may pass those on to CSRs, a small-business department or new producers to handle. In a survey we conducted last year, 24% of respondents said they plan to reduce or eliminate producer commissions on small accounts. Agencies vary in how they define such accounts. The smallest figure we saw was $1,000 or less in annual revenue. Others defined them as $5,000 or less; $3,000 or less appeared to be typical.
oSales-driven agencies focus on bigger accounts. If you look at the IIABA's 2005 Best Practices study, you will see a big gap between the average size of producers' books in the typical agency and the top 25%. For instance, producer books averaged $267,000 in revenue in small agencies–those with $500,000 to $1.25 million in total revenue. But they avergaged nearly $500,000 for the top 25% of agencies of that size. That's because the average commission in those agencies was $4,086, versus $1,880 in the typical agency.

Special Reports /

Characteristics of Top Producers and Their Agencies

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