WOODBRIDGE, N.J.—To grow and improve revenue, producers cannotdepend on renewals and price changes in the insurance marketplace,but rather must proactively recruit the best sales force and pursuebusiness, the president of agency-consulting firm Marsh, Berry& Co. Inc. says.

John M. Wepler, speaking before the American Association ofManaging General Agents here, says typically a hard market willlast two-to-three years, followed by prolonged soft-marketconditions. While rate increases today are gradually taking root,Wepler says, “This industry has done nothing to drive predictableorganic growth.”

The question for an agent, he says: Will he or she be a shepherdor a producer? The shepherd rests on the strength of renewals andmakes no effort to expand the book, he explains, while a producerhas a strategy for growth, hiring agents and growing outside of thehard-market cycle.

“If you want to grow your business, you need to hiresalespeople,” says Wepler.

But finding sales talent can be a challenge, and Wepler saysturning to experienced insurance producers is not necessarily theanswer. He held disdain for what he calls “jumpers”—those whosemotive is solely to optimize their own income before jumping toanother agency.

Among the best candidates to consider, according to Wepler, areformer business owners, entrepreneurs hungry for growth andex-military because of their loyalty, work ethic, and willingnessto work long hours.

Unless they have been through an insurance intern program,college graduates are the least desirable because they lack theexperience, he says.

A successful sales development program needs to include a mentorto guide the recruit. The recruit should initially receive a salarythat transitions to commission over a period of months, saysWepler. At the end of that salary period, it's time for the recruitto sink or swim: no production—no paycheck.

As important as recruiting a sales for is managing it, Weplernotes, and a CEO that cannot do this needs to hire a sales manager.He says a Marsh Berry analysis shows that agencies with a full-timesales manager produce more revenue. A successful agency with morethan $50 million in sales revenue averages between four to fivesales managers, Wepler says.