How to attract and develop people who have sales potential

IT'S BEEN estimated that 10% to 15% of potential employees have the capacity to be good salespeople. The job of agency owners is to attract this prize pool of candidates. In this article, I'm going to present four concepts that can increase your chances of doing just that.

Step No. 1: Become a DSO. The agencies that are the most successful at attracting producers are what I call dynamic sales organizations. In such an organization, selling is not the function of a single department but a paradigm that permeates the whole company. A dynamic sales organization has a well-defined sales strategy. The employees not only can describe it but also know their roles in its implementation: “I bring in the sales.” “I service the clients.” “I pay the claims.” When asked to describe his or her job, the receptionist of an ordinary organization might say, “To answer the phone.” The receptionist of a dynamic sales organization, knowing how that position affects agency sales, would more likely respond, “To connect current and potential clients with the appropriate salespeople.”

Dynamic sales organizations are employers of choice among producers, because these organizations monitor their employees and respond to their needs. These employers view their staff as their greatest asset and consequently heavily fund this resource.

In the old days, we'd show new producers to their desks, give them phones and the Yellow Pages then say, “Go sell insurance.” No wonder the wash-out rate was high. Unlike bosses gone by, managers of dynamic organizations pair novice producers with veterans and afford both the time and tools, including training, necessary to do the job.

Existing employees aren't overlooked either. Dynamic sales organizations recognize that all workers need regular training and doses of motivation. They provide both and view the expense as an investment.

Dynamic sales organizations support their clients, too. They are “externally focused,” concentrating on the needs of their clients before their own success. This may seem counterintuitive; but when you think about it, this order of priorities makes sense: Happy customers generate sales. The more sales a company makes, the more successful it will be. DSOs realize this and go out of their way to understand who their customers are, what they want and how to meet their needs.

Step No. 2: Prepare for the new producer. Before any organization, dynamic or not, begins the search for a producer, it should perform a self-assessment to determine why it needs another salesperson in the first place. The owners or managers also should ask themselves some questions, including : “What kind of producer are we looking for? What will the position's parameters be?” “What time and resources can we commit to the producer?”

Too often, I've encountered agencies that have hired producers to fix problems. Don't hire a new producer under the mistaken belief that he or she will be a cure for whatever ails the agency. Producers can do exactly two things for their employers: acquire customers and manage accounts.

Once you have established that your agency has a legitimate need for a producer, decide what type of producer you are looking for. Determining compensation is one detail to consider; however, the agency's financial condition and the disposition of its management will largely determine this. A far trickier issue to determine is what selling style to look for.

In my experience, most producers have one of three selling personalities: hunter, farmer or caretaker. Hunters scour the land for game, capture it and return to camp with their bounty. “Hunter” producers do the same. They track down leads, pursue the sale and bring business into the agency.

Farmers, on the other hand, rarely leave the homestead. Instead, they tend the land, making sure the planted seeds mature into edible fruits and vegetables. Similarly, “farmer” producers cultivate quality clientele from leads. These leads, however, must be agency-provided, since farmers shun the hunt.

Caregivers, like farmers, would rather pamper than pursue. These are your cross-sale people. Caregivers will maintain and develop your agency's relationships with existing clients, retaining accounts and ensuring repeat business.

Hire a producer with the selling style that will address your agency's needs. Losing business because of poor customer service? Hire a caregiver. Need more leads? Take on a hunter. Do you have plenty of leads but no clients? Add a farmer to the lineup. The biggest mistake I see agencies make is to hire a producer with a selling personality that is incompatible with the company's culture and the producer's intended role within it.

Step No. 3: Search and employ. The search for a producer may last three months, so stockpile your stamina. Where should you look? In a word, everywhere. Constantly be on the lookout for quality salespeople.

When I'm on the prowl for a new producer, I seek candidates who possess what I call “the five 'E's.” Two of the “E”s are ego-strength and ego-drive. By “ego,” I don't mean an exaggerated sense of self-importance but rather resilience against rejection. If you tell a person with ego-strength, “No,” he or she will respond by thinking, “OK, then I'll ask the next person.” Salespeople, who often face rejection, need such resilience and confidence.

The third “E” stands for “empathy.” In the insurance business, successful salespeople have empathy, the capability to put themselves in another person's shoes. Empathetic salespeople understand their customers and can address their requests and concerns better than the competition.

The fourth “E” stands for economic desire. After all, producers are hired to produce. A producer who isn't motivated to earn won't be motivated to work and won't become an asset to your agency.

The final “E” stands for ethics. Producers are your agency's ambassadors. They work mostly outside of the office and unsupervised. Hire producers who you know will conduct themselves ethically. That way, you keep your conscience clean and your agency out of the crosshairs of lawyers and regulators.

How do you know whether a candidate has the five “E”s? By performing due diligence. Interview the applicant by phone, face-to-face and as part of a team. Check references. Resist the temptation to pirate personnel from your competitors. Their track records may be misleading, and you may be recycling mediocrity.

Don't dismiss your gut instincts. If something doesn't feel right, it probably isn't. And don't compromise. If your top pick is unavailable, wait until another winner comes along. Settling for second best renders moot all the work you've done up to this point.

Step No. 4: Follow through. Typically, producers fail not because they aren't trained, but because they don't get the training they need. Agency managers often worry that producers won't understand the product, so they train their new hires in insurance. For producers, however, salesmanship training is much more practical. Producers should learn how to generate leads, market their goods and close a sale. Many insurance associations and some carriers offer courses covering these skills. Producer schools are also a good resource for sales and product training.

Management also sometimes forgets that new producers need leads-and lots of them. It's ridiculous to think that a producer without an existing book of business or the skills to acquire one will pull in enough prospects to turn a profit. Most producers will need you to supply their leads, at least in the short term. So how will you do so? Will you purchase leads? Will you get your new producer involved in lead-generating organizations?

During their first 90 days, when they're most in need of guidance, new producers should follow a detailed, formal training regimen. It should begin with an agency orientation that includes the completion of all employment-related forms, an introduction to the staff, an office tour and review of the agency's philosophy, history and mission.

Product and sales training should follow. Producers ought to be versed in insurance basics and underwriting techniques. Any product instruction should be tailored to the specific products the producers will sell. Get carriers involved. They know their products best.

Throughout the training process, a seasoned sales manager should observe the trainee. If your agency is large, more than one manager may mentor the trainee. That gives the new producer more perspectives and reduces individual managers' time away from their other duties. The mentor(s) will offer guidance when the new producer encounters snags and will track the trainee's progress. Regular meetings among the trainee, mentors and the sales team are mandatory to keep everyone on task. During the first 90 days, I recommend weekly meetings. They don't have to be long–maybe just 15 or 20 minutes–but long enough for the new producer to answer the questions: “What are you working on?” and “How's it going?”

Effective training boils down to three simple tasks: planning, monitoring and coaching. Know your goals for the training before it starts. Monitor your trainee's progress, so you can determine whether the training is working. Managers often fail to do so, consequently letting poorly trained producers slip into the workforce. Coaching is a continuous task. Your new producer eventually will learn the ropes but will never tire of recognition and encouragement.